What were Occidental Petroleum's key financial results for the fourth quarter and full year 2000?

For the fourth quarter of 2000, Occidental Petroleum reported earnings before special items of $349 million ($0.94 per share), an 80% increase compared to the same period in 1999. For the full year 2000, earnings before special items were a record $1.3 billion ($3.60 per share), a significant increase from $253 million ($0.69 per share) in 1999. Sales also saw substantial growth, reaching $13.6 billion for the full year 2000, up from $7.8 billion in 1999.

How did Occidental Petroleum manage its debt levels in 2000?

Occidental Petroleum significantly reduced its total debt by $2.8 billion in 2000, ending the year at $6.4 billion. This reduction was achieved through free cash flow generated from operations and proceeds from asset sales. Consequently, the company's debt-to-capitalization ratio fell to 57% by year-end 2000, which is the lowest level in nearly a decade. Management expects to further reduce debt in 2001.

What were the main drivers for the strong performance in the Oil and Gas segment?

The strong performance in the Oil and Gas segment was driven by a combination of higher worldwide crude oil and natural gas prices, as well as increased domestic oil production volumes. The acquisitions of Altura and THUMS in the second quarter of 2000 significantly boosted domestic production, offsetting lower international volumes resulting from asset sales. Production on a barrel of oil equivalent (BOE) basis increased by over 22% in the fourth quarter of 2000 compared to the prior year.

What challenges did the Chemical segment face in the fourth quarter of 2000?

The Chemical segment reported a loss of $51 million before special items in the fourth quarter of 2000, a significant decline from earnings of $70 million in the same period of 1999. This downturn was attributed to several factors, including higher energy and feedstock costs, lower sales volumes, and reduced earnings from equity investments. The company noted that it was unable to fully pass on increased energy and natural gas costs to customers due to reduced demand and operating rates in key markets.

OXY/OXY-WT 8-K SEC Disclosure

Summary

Occidental Petroleum Corporation (OXY) reported strong financial results for the fourth quarter and full year 2000, driven primarily by a significant increase in oil and gas prices and higher production volumes, partly due to the acquisitions of Altura and THUMS in early 2000. Earnings before special items for Q4 2000 were $349 million ($0.94 per share), an 80% increase year-over-year. For the full year 2000, earnings before special items reached $1.3 billion ($3.60 per share), marking a company record. A key achievement highlighted is the substantial reduction in total debt by $2.8 billion from the pro forma level following the Altura acquisition, bringing the year-end debt to $6.4 billion and resulting in a debt-to-capitalization ratio of 57%, the lowest in nearly a decade. The company anticipates further debt reduction in 2001. While the oil and gas segment showed robust performance, the chemical segment experienced a loss of $51 million before special items in Q4 2000, a decline from the previous year, attributed to higher energy and feedstock costs and reduced sales volumes. Despite these challenges, Occidental is strategically positioned with increased domestic oil production and is exploring new business opportunities in the Middle East.

Key Highlights

1Record annual earnings before special items of $1.3 billion ($3.60 per share) for the full year 2000.
2Fourth quarter 2000 earnings before special items surged 80% year-over-year to $349 million ($0.94 per share).
3Total debt was reduced by $2.8 billion during 2000, ending the year at $6.4 billion.
4Year-end debt-to-capitalization ratio improved to 57%, the lowest in nearly a decade, with expectations for further reduction in 2001.
5Oil and gas sector earnings before special items increased substantially due to higher global commodity prices and increased domestic production, including contributions from Altura and THUMS acquisitions.
6Chemical segment faced challenges in Q4 2000 with a loss of $51 million (before special items) due to rising energy and feedstock costs and lower sales volumes.
7Significant growth in oil and gas production volumes, with total production up over 22% for Q4 2000 on a BOE basis.
8Active exploration and development of new business opportunities in the Middle East, including bids for natural gas ventures in Saudi Arabia.

OCCIDENTAL PETROLEUM CORP /DE/ 8-K Report (Jan 24, 2001)

Summary

Key Highlights

Frequently Asked Questions