What was Occidental Petroleum's net income and earnings per share for the first quarter of 2009?

Occidental Petroleum reported a net income of $368 million, or $0.45 per diluted share, for the first quarter of 2009. Core earnings, which exclude certain non-core charges, were $407 million, or $0.50 per diluted share.

What factors contributed to the significant decrease in Oil and Gas segment earnings compared to the prior year?

The substantial decrease in Oil and Gas segment earnings was primarily attributed to significantly lower crude oil and natural gas prices realized in the first quarter of 2009 compared to the first quarter of 2008. Higher DD&A rates and an $8 million charge for rig terminations also impacted the results.

Did Occidental Petroleum's production volumes increase or decrease in the first quarter of 2009?

Despite lower commodity prices, Occidental Petroleum saw an increase in its daily oil and gas sales volumes, averaging 654,000 barrels of oil equivalent (BOE) per day in Q1 2009, up from 607,000 BOE per day in Q1 2008. This increase was driven by growth in domestic operations, Oman, and Argentina.

How did the Chemical and Midstream segments perform in the first quarter of 2009?

The Chemical segment reported earnings of $169 million, a slight decrease from $179 million in the prior year, reflecting higher caustic soda margins but offset by lower volumes. The Midstream, Marketing and Other segment saw a significant earnings decline to $14 million from $123 million, mainly due to lower NGL prices and negative mark-to-market adjustments.

OXY/OXY-WT 8-K: Earnings & Results

Summary

Occidental Petroleum Corporation (OXY) reported its first quarter 2009 results on April 23, 2009. The company posted net income of $368 million, or $0.45 per diluted share. Excluding certain non-core charges, core earnings were $407 million, or $0.50 per diluted share. This marks a significant decrease compared to the same period in the prior year, largely driven by a substantial drop in oil and gas prices and higher DD&A rates, which impacted segment earnings. Despite the challenging market conditions, OXY demonstrated resilience in its operational volumes. Daily oil and gas sales volumes increased to an average of 654,000 BOE per day, up from 607,000 BOE per day in Q1 2008, with notable volume growth in domestic operations (Rockies and California), Oman, and Argentina. The company also reported a decrease in oil and gas cash production costs per BOE, indicating cost management efforts. The Chemicals segment remained relatively stable, while the Midstream, Marketing and Other segment experienced a significant decline in earnings due to lower NGL prices and negative market adjustments.

Key Highlights

1Net income for Q1 2009 was $368 million ($0.45 per diluted share), with core earnings at $407 million ($0.50 per diluted share).
2Oil and Gas segment earnings significantly decreased to $545 million from $2.9 billion in Q1 2008, primarily due to lower commodity prices and higher DD&A.
3Daily oil and gas sales volumes increased to 654,000 BOE per day in Q1 2009, up from 607,000 BOE per day in Q1 2008.
4Realized crude oil prices fell sharply to $39.29 per barrel in Q1 2009 from $86.75 per barrel in Q1 2008.
5Domestic realized natural gas prices dropped from $8.15 per MCF in Q1 2008 to $3.54 per MCF in Q1 2009.
6Oil and gas cash production costs per BOE decreased to $12.19 in Q1 2009 from $14.75 for the full year 2008.
7Chemical segment earnings were $169 million, a slight decrease from $179 million in Q1 2008, impacted by lower volumes despite higher caustic soda margins.
8Midstream, Marketing and Other segment earnings declined significantly to $14 million from $123 million in Q1 2008 due to lower NGL prices and market adjustments.

OCCIDENTAL PETROLEUM CORP /DE/ 8-K Report, Financial Results (Apr 23, 2009)

Summary

Key Highlights

Frequently Asked Questions