Summary
Occidental Petroleum Corporation (OXY) reported robust financial results for the third quarter and the first nine months of 2011, significantly outperforming the same periods in 2010. The company's earnings from continuing operations for Q3 2011 were $1.8 billion, or $2.18 per diluted share, a substantial increase from $1.2 billion, or $1.48 per diluted share, in Q3 2010. This strong performance was primarily driven by the Oil and Gas segment, which saw earnings jump to $2.6 billion from $1.8 billion year-over-year, fueled by higher production volumes and increased liquids prices. The Chemical segment also demonstrated considerable improvement, with earnings rising to $245 million from $189 million in the prior year's third quarter, largely due to improved pricing across product lines. For the nine-month period ended September 30, 2011, Occidental reported total core income of over $5.2 billion ($6.37 per diluted share), a marked improvement from $3.4 billion ($4.14 per diluted share) in the same period of 2010. The Oil and Gas segment's nine-month earnings reached $7.7 billion, up from $5.5 billion in 2010, benefiting from higher crude oil and NGL prices and sales volumes. The Chemical segment also posted strong nine-month results with earnings of $717 million, more than doubling from $327 million in 2010, driven by robust export sales and higher margins. While the Midstream segment experienced a decline in earnings for the third quarter, its nine-month performance showed an increase compared to the prior year.
Key Highlights
- 1Occidental Petroleum reported a substantial increase in Q3 2011 earnings from continuing operations to $1.8 billion ($2.18/share), up from $1.2 billion ($1.48/share) in Q3 2010.
- 2The Oil and Gas segment was the primary driver of growth, with Q3 2011 earnings of $2.6 billion, an increase from $1.8 billion in Q3 2010, attributed to higher volumes and liquids prices.
- 3Daily oil and gas production volumes increased to 739,000 BOE in Q3 2011, up from 706,000 BOE in Q3 2010, with domestic volumes showing significant growth.
- 4Realized worldwide crude oil prices rose to $97.24 per barrel in Q3 2011, a significant increase from $72.31 per barrel in Q3 2010.
- 5Chemical segment earnings improved to $245 million in Q3 2011, compared to $189 million in Q3 2010, driven by higher pricing.
- 6Year-to-date 2011 core income exceeded $5.2 billion ($6.37/share), a significant rise from $3.4 billion ($4.14/share) in the first nine months of 2010.
- 7Capital expenditures more than doubled in Q3 2011 to $2.011 billion from $1.020 billion in Q3 2010, indicating investment in future growth.