8-KEarnings & ResultsOther Events

OCCIDENTAL PETROLEUM CORP /DE/ 8-K Report, Financial Results (Oct 18, 2006)

Filed October 18, 2006For Securities:OXYOXY-WT

Summary

Occidental Petroleum Corporation's (OXY) 8-K filing from October 18, 2006, reports strong third-quarter 2006 financial results, driven primarily by robust performance in its Oil and Gas segment. The company announced core earnings of $1.159 billion ($1.35 per diluted share), an increase from $1.004 billion ($1.22 per diluted share) in the prior year's third quarter. This growth was fueled by higher worldwide crude oil prices and increased production volumes, signaling a positive operational trend. The Chemical segment also showed significant improvement, with core earnings rising to $247 million from $167 million year-over-year, attributed to higher chlor-alkali volumes and improved margins. For the first nine months of 2006, OXY reported core earnings of $3.514 billion ($4.07 per diluted share), also representing a substantial increase compared to $2.616 billion ($3.20 per diluted share) in the same period of 2005. Production levels across the board, including the U.S., Latin America, and the Middle East/North Africa regions, demonstrated year-over-year growth. These results highlight OXY's ability to capitalize on favorable commodity prices and expand its operational footprint, positioning the company favorably within the energy sector at the time of this filing.

Key Highlights

  • 1Third quarter 2006 core earnings increased to $1.159 billion ($1.35 per diluted share) from $1.004 billion ($1.22 per diluted share) in Q3 2005.
  • 2Oil and Gas segment earnings for Q3 2006 rose by 15% to $1.877 billion, driven by higher crude oil prices and increased production.
  • 3Worldwide oil and gas daily production from continuing operations increased by approximately 14% in Q3 2006 to 587,000 BOE, up from 516,000 BOE in Q3 2005.
  • 4Chemical segment core earnings for Q3 2006 significantly improved to $247 million from $167 million in Q3 2005, due to higher volumes and margins.
  • 5Nine-month 2006 core earnings reached $3.514 billion ($4.07 per diluted share), up from $2.616 billion ($3.20 per diluted share) in the first nine months of 2005.
  • 6West Texas Intermediate (WTI) crude oil prices averaged $70.53 per barrel in Q3 2006, compared to $63.19 in Q3 2005.
  • 7The company is actively managing its operations to leverage favorable market conditions, as evidenced by the performance across its key segments.

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