What were the main drivers behind Occidental Petroleum's improved financial performance in Q3 2010?

The improved performance was primarily driven by higher crude oil and natural gas prices, as well as increased production volumes. Additionally, the company benefited from improved margins and volumes in its Chemicals segment and higher margins in its Midstream, Marketing, and Trading businesses.

How did Occidental Petroleum's oil and gas production volumes change?

Worldwide oil and gas production volumes saw a notable increase, averaging 751,000 barrels of oil equivalent (BOE) per day in the third quarter of 2010, a 6.5% rise from 705,000 BOE per day in the third quarter of 2009. This growth was largely attributed to new production in Bahrain and increased output from the Mukhaizna field in Oman.

What is the significance of the 'core results' mentioned in the filing?

The 'core results' are a non-GAAP measure used by management to provide a view of earnings performance that excludes certain significant transactions and events that can vary unpredictably. This measure is intended to help investors compare earnings performance between periods by removing these volatile items, though reported earnings are considered representative of long-term management performance.

Did Occidental Petroleum increase its capital expenditures?

Yes, Occidental Petroleum significantly increased its capital expenditures. For the third quarter of 2010, capital expenditures were $1.1 billion, an increase from $746 million in the third quarter of 2009. Year-to-date, capital expenditures were $2.8 billion in 2010, up from $2.6 billion in 2009.

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

Summary

Occidental Petroleum Corporation (OXY) reported strong financial results for the third quarter and the first nine months of 2010, demonstrating significant year-over-year improvements across its key segments. The company's performance was driven by higher crude oil and natural gas prices, coupled with increased production volumes, particularly in the Middle East/North Africa region. Both the Oil & Gas and Chemicals segments showed substantial earnings growth, with the Midstream, Marketing & Other segment also contributing positively. This robust performance translated into a significant increase in earnings per diluted share for both quarterly and year-to-date periods, indicating a healthy operational and financial state for the company during this period.

Key Highlights

1Occidental Petroleum reported a substantial increase in net income for Q3 2010 to $1.2 billion ($1.46/share) compared to $927 million ($1.14/share) in Q3 2009.
2Oil and Gas segment earnings rose to $1.7 billion in Q3 2010 from $1.5 billion in Q3 2009, driven by higher prices and volumes.
3Total worldwide oil and gas production volumes increased by 6.5% to 751,000 BOE per day in Q3 2010 compared to 705,000 BOE per day in Q3 2009.
4The Chemicals segment saw significant earnings growth, with Q3 2010 earnings at $189 million compared to $72 million in Q3 2009, reflecting improved margins and volumes.
5Midstream segment earnings more than doubled to $163 million in Q3 2010 from $77 million in Q3 2009, attributed to higher trading margins and pipeline income.
6Year-to-date 2010 income from continuing operations reached $3.3 billion ($4.09/share), a marked improvement from $2.0 billion ($2.44/share) in the same period of 2009.
7Capital expenditures increased to $1.1 billion in Q3 2010 from $746 million in Q3 2009, indicating significant investment in operations.

OCCIDENTAL PETROLEUM CORP /DE/ 8-K Report, Financial Results (Oct 19, 2010)

Summary

Key Highlights

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