Summary
Occidental Petroleum Corporation (OXY) filed an 8-K on January 29, 2008, reporting strong financial results for the fiscal year and fourth quarter of 2007. The company announced record net income of $5.4 billion ($6.44 per diluted share) for the full year 2007, a significant increase from $4.191 billion ($4.87 per diluted share) in 2006. Fourth-quarter net income also saw substantial growth, reaching $1.452 billion ($1.74 per diluted share) compared to $930 million ($1.09 per diluted share) in the same period of the prior year. Driving these impressive results was the strong performance of the Oil and Gas segment, which benefited from record high crude oil and natural gas prices. The company also reported a production replacement rate of 116 percent based on preliminary proved reserve additions, indicating successful reserve management and exploration efforts. While the Chemical segment experienced a dip in earnings due to lower polyvinyl chloride margins, the overall financial health and operational success of OXY were clearly demonstrated in this filing.
Key Highlights
- 1Record full-year 2007 net income of $5.4 billion, up from $4.191 billion in 2006.
- 2Fourth-quarter 2007 net income of $1.452 billion, a significant increase from $930 million in Q4 2006.
- 3Oil and Gas segment earnings significantly increased, driven by record high crude oil ($90.68/barrel WTI in Q4 2007) and natural gas prices.
- 4Preliminary proved reserve additions resulted in a production replacement rate of 116 percent.
- 5Worldwide oil and gas production averaged 590,000 BOE per day in Q4 2007, up from 561,000 BOE per day in Q4 2006.
- 6Chemical segment earnings declined in Q4 2007 and full-year 2007 due to lower polyvinyl chloride margins.