What were Occidental Petroleum's key financial performance indicators for Q4 2011?

For the fourth quarter of 2011, Occidental Petroleum reported net income of $1.6 billion, or $2.01 per diluted share. Core income was also $1.6 billion, or $2.02 per diluted share. This represents a significant improvement compared to the fourth quarter of 2010, when net income was $1.2 billion ($1.49 per diluted share) and core income was $1.3 billion ($1.58 per diluted share).

What drove the significant increase in the Oil and Gas segment earnings?

The increase in Oil and Gas segment earnings for Q4 2011 was primarily due to higher liquids volumes and prices. Daily oil and gas production volumes increased to 748,000 BOE, up from 714,000 BOE in the prior year's quarter. Domestic production, particularly from South Texas, the Williston Basin, and California, was a key driver of this volume growth.

How did the Chemical segment perform in Q4 2011?

The Chemical segment showed improved performance, with earnings of $144 million in Q4 2011, compared to $111 million in Q4 2010. This improvement was mainly attributed to higher caustic soda pricing, which more than offset increased feedstock costs.

What is 'Core Income' and why does Occidental Petroleum report it?

Core income is a non-GAAP measure that Occidental Petroleum uses to provide investors with useful information for comparing earnings performance between periods. It excludes certain significant transactions and events that can vary widely and unpredictably, such as asset impairments, exploration write-offs, and gains or losses on asset sales. The company states that reported earnings are considered representative of management's performance over the long term.

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

Summary

Occidental Petroleum Corporation (OXY) reported strong financial results for the fourth quarter and full year ended December 31, 2011. The company announced a significant increase in net income, reaching $1.6 billion ($2.01 per diluted share) for Q4 2011, a substantial improvement from $1.2 billion ($1.49 per diluted share) in the prior year's quarter. For the full year 2011, net income rose to $6.8 billion ($8.32 per diluted share) compared to $4.5 billion ($5.56 per diluted share) in 2010. The performance was primarily driven by the Oil and Gas segment, which saw a notable increase in earnings due to higher liquids volumes and prices. Production volumes also saw a year-over-year increase, particularly in domestic operations across South Texas, the Williston Basin, and California. The Chemical segment also contributed positively with improved earnings, largely due to higher caustic soda pricing. While the Midstream, Marketing and Other segment experienced a decline in earnings, the overall results demonstrate robust operational and financial health for Occidental Petroleum during this period.

Key Highlights

1Q4 2011 Net Income: $1.6 billion ($2.01 per diluted share), up from $1.2 billion ($1.49 per diluted share) in Q4 2010.
2Full Year 2011 Net Income: $6.8 billion ($8.32 per diluted share), up from $4.5 billion ($5.56 per diluted share) in 2010.
3Oil and Gas Segment Earnings Surge: Q4 2011 earnings were $2.5 billion, a significant increase from $1.7 billion (or $1.9 billion excluding impairments) in Q4 2010.
4Production Volume Growth: Daily oil and gas production increased to 748,000 BOE in Q4 2011 from 714,000 BOE in Q4 2010, driven by domestic production.
5Higher Realized Prices: Worldwide crude oil prices increased to $99.62 per barrel in Q4 2011 from $79.96 per barrel in Q4 2010.
6Chemical Segment Improvement: Q4 2011 Chemical segment earnings rose to $144 million from $111 million in Q4 2010, driven by higher caustic soda pricing.
7Increased Capital Expenditures: Capital expenditures more than doubled in Q4 2011 ($2.5 billion vs. $1.36 billion in Q4 2010) and significantly increased for the full year 2011 ($7.5 billion vs. $3.9 billion in 2010).

OCCIDENTAL PETROLEUM CORP /DE/ 8-K Report, Financial Results (Jan 25, 2012)

Summary

Key Highlights

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