What was the primary reason for the decrease in net income year-over-year?

The primary reason for the decrease in net income year-over-year was lower year-over-year oil and NGL prices, which offset higher domestic liquids volumes and lower operating costs. Additionally, sales volumes in the Middle East/North Africa were lower, and DD&A rates were higher.

How did operating costs change in the first quarter of 2013?

Operating costs dropped significantly in the first quarter of 2013. Domestic operating costs per barrel decreased to $14.06 from $16.44 in the prior year's quarter. Company-wide, first quarter 2013 costs were $13.93 per barrel, compared to $14.99 for the full year 2012.

What drove the increase in the Midstream, Marketing and Other segment earnings?

The increase in Midstream, Marketing and Other segment earnings to $215 million from $131 million was mainly due to improved marketing and trading performance.

Were there any significant charges or one-time events impacting the reported earnings?

The filing indicates that Occidental uses a 'core results' measure to exclude significant transactions and events that vary widely. However, for the first quarter of 2013, the company reported no significant items affecting earnings in the Oil and Gas, Chemical, or Midstream segments, meaning reported segment earnings were equivalent to core segment results.

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

Summary

Occidental Petroleum Corporation (OXY) reported its first quarter 2013 results, showcasing a slight decrease in income from continuing operations to $1.4 billion ($1.69 per diluted share) from $1.6 billion ($1.92 per diluted share) in the prior year's first quarter. This decline was primarily driven by lower commodity prices for oil and NGLs, despite an increase in domestic liquids production and a significant reduction in domestic operating costs. The company's Oil and Gas segment earnings saw a decrease to $1.9 billion from $2.5 billion year-over-year, attributed to lower prices and reduced sales volumes in the Middle East/North Africa region, partially offset by improved domestic volumes and cost efficiencies. The Chemical segment experienced a dip in earnings to $159 million from $184 million due to weaker demand and pricing in chlorinated organics, while the Midstream, Marketing and Other segment demonstrated robust growth, with earnings increasing to $215 million from $131 million, driven by improved marketing and trading performance. Overall, the results indicate a mixed performance across segments, with cost management being a notable positive development.

Key Highlights

1Occidental Petroleum reported Q1 2013 income from continuing operations of $1.4 billion ($1.69 per diluted share), down from $1.6 billion ($1.92 per diluted share) in Q1 2012.
2Oil and Gas segment earnings decreased to $1.9 billion in Q1 2013 from $2.5 billion in Q1 2012, primarily due to lower oil and NGL prices and reduced sales volumes in the Middle East/North Africa.
3Domestic operating costs per barrel saw a significant reduction, falling to $14.06 in Q1 2013 from $16.44 in Q1 2012, indicating improved operational efficiency.
4Total daily oil and gas production volumes slightly increased to 763,000 BOE in Q1 2013 from 755,000 BOE in Q1 2012, driven by higher domestic production.
5Chemical segment earnings declined to $159 million in Q1 2013 from $184 million in Q1 2012, impacted by weaker chlorinated organics demand and pricing.
6Midstream, Marketing and Other segment earnings significantly increased to $215 million in Q1 2013 from $131 million in Q1 2012, fueled by enhanced marketing and trading performance.
7Capital expenditures decreased to $2.07 billion in Q1 2013 from $2.41 billion in Q1 2012.

OCCIDENTAL PETROLEUM CORP /DE/ 8-K Report, Financial Results (Apr 25, 2013)

Summary

Key Highlights

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