Did Occidental Petroleum's production volumes increase in Q1 2011 compared to Q1 2010?

Yes, daily oil and gas production volumes increased to an average of 730,000 barrels of oil equivalent (BOE) in Q1 2011 from 701,000 BOE in Q1 2010. This was primarily due to increases in domestic gas and NGL production from a recent acquisition, and higher crude oil volumes from the Middle East/North Africa region, including new production from Iraq.

What impact did commodity prices have on Occidental Petroleum's Q1 2011 results?

Higher crude oil prices significantly benefited the Oil and Gas segment, increasing realized prices from $74.09 to $92.14 per barrel year-over-year. However, domestic realized natural gas prices dropped from $5.62 per Mcf to $4.21 per Mcf, which was a partial offset. NGL prices saw a modest increase.

What significant non-recurring items affected Occidental Petroleum's Q1 2011 earnings?

The company reported several items affecting core results. These include pre-tax charges for exploration write-offs in Libya and a Colombian net worth tax, a pre-tax gain from the sale of a Colombia pipeline interest, and a significant pre-tax charge related to the premium on debt extinguishment. Additionally, a $144 million after-tax gain from the sale of Argentina operations was recognized under discontinued operations.

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

Q: What were the primary drivers for Occidental Petroleum's improved earnings in Q1 2011?

The primary drivers were higher average crude oil prices and increased sales volumes in the Oil and Gas segment, as well as strong export sales and improved margins in the Chemicals segment. A new acquisition in South Texas and contributions from international production also played a role in boosting volumes.

Summary

Occidental Petroleum Corporation (OXY) reported strong first-quarter 2011 financial results, driven by significant increases in both its Oil and Gas segment and its Chemicals segment. Core income rose to $1.6 billion, or $1.96 per diluted share, a substantial improvement from $1.1 billion, or $1.35 per diluted share, in the same period of 2010. This growth was fueled by higher crude oil prices and increased sales volumes in the Oil and Gas segment, along with robust export sales and improved margins in the Chemicals business. The company also saw an increase in daily oil and gas production volumes, partly attributed to a new acquisition in South Texas and contributions from new production in Iraq. Despite some headwinds such as planned maintenance and production shut-downs in specific regions, and a drop in domestic natural gas prices, OXY's overall performance demonstrates a positive trajectory. The report highlights the company's effective management of its assets and markets, leading to enhanced profitability and shareholder value.

Key Highlights

1Core income for Q1 2011 was $1.6 billion ($1.96 per diluted share), up from $1.1 billion ($1.35 per diluted share) in Q1 2010.
2Net income for Q1 2011 was $1.5 billion ($1.90 per diluted share), compared to $1.1 billion ($1.31 per diluted share) in Q1 2010.
3Oil and Gas segment earnings increased to $2.5 billion in Q1 2011 from $1.9 billion in Q1 2010, driven by higher crude oil prices and increased volumes.
4Daily oil and gas production volumes averaged 730,000 BOE in Q1 2011, an increase from 701,000 BOE in Q1 2010, due to new acquisitions and international production.
5Chemical segment earnings saw a significant jump to $219 million in Q1 2011 from $30 million in Q1 2010, attributed to strong export sales and improved margins.
6Capital expenditures for Q1 2011 were $1.325 billion, up from $768 million in Q1 2010, indicating increased investment in the business.
7A pre-tax gain of $144 million from the sale of Argentina operations was recognized in discontinued operations for Q1 2011.

OCCIDENTAL PETROLEUM CORP /DE/ 8-K Report, Financial Results (Apr 28, 2011)

Summary

Key Highlights

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