Summary
Occidental Petroleum Corporation (OXY) reported strong financial results for the second quarter and the first six months of 2010, significantly outpacing performance in the prior year. The primary driver of this improvement was the Oil and Gas segment, which saw substantial growth in earnings due to higher crude oil and natural gas prices, coupled with increased production volumes. The company's chemical segment experienced a slight decline in earnings due to pricing pressures, while the midstream segment also saw reduced earnings from marketing and trading activities. Overall, net income for the second quarter of 2010 reached $1.1 billion ($1.31 per diluted share), a substantial increase from $682 million ($0.84 per diluted share) in the second quarter of 2009. For the six-month period, net income more than doubled to $2.1 billion ($2.61 per diluted share) from $1.1 billion ($1.29 per diluted share) in the comparable 2009 period. Investors should note the positive impact of commodity prices and production growth in the core oil and gas business, which significantly benefited the company's top and bottom lines.
Key Highlights
- 1Occidental Petroleum reported a net income of $1.1 billion ($1.31 per diluted share) for Q2 2010, a significant increase from $682 million ($0.84 per diluted share) in Q2 2009.
- 2For the first six months of 2010, net income was $2.1 billion ($2.61 per diluted share), more than double the $1.1 billion ($1.29 per diluted share) reported for the same period in 2009.
- 3The Oil and Gas segment earnings grew substantially, reaching $1.9 billion in Q2 2010, driven by higher crude oil and natural gas prices and increased sales volumes.
- 4Daily oil and gas sales volumes increased to 747,000 BOE in Q2 2010 from 719,000 BOE in Q2 2009, with growth in the Middle East/North Africa and California regions.
- 5Realized crude oil prices rose significantly, averaging $72.13 per barrel in Q2 2010 compared to $52.97 per barrel in Q2 2009.
- 6The Chemical segment earnings decreased slightly to $108 million in Q2 2010 from $115 million in Q2 2009, attributed to caustic soda price erosion and higher raw material costs.
- 7Capital expenditures for Q2 2010 were $868 million, a slight increase from $831 million in Q2 2009, while year-to-date capital expenditures were $1.7 billion, down from $1.9 billion in the prior year.