Summary
Occidental Petroleum Corporation (OXY) reported its third quarter and nine-month results for 2013, showcasing a notable increase in profitability driven primarily by its Oil and Gas segment. For the third quarter, net income rose to $1.6 billion ($1.96 per diluted share) from $1.4 billion ($1.69 per diluted share) in the prior year, with core income also seeing an improvement. The Oil and Gas segment earnings significantly increased to $2.4 billion from $2.0 billion year-over-year, supported by higher domestic realized prices for oil and gas, reduced operating costs, and increased domestic liquid volumes, despite a dip in Middle East/North Africa production volumes. The Chemical and Midstream segments also contributed positively, with Chemical earnings growing to $181 million and Midstream segment earnings increasing to $212 million in the third quarter compared to the same period in 2012. This overall performance suggests operational improvements and a favorable pricing environment, particularly in domestic markets, which are key drivers for the company's financial health.
Key Highlights
- 1Third quarter net income increased to $1.6 billion ($1.96 per diluted share) from $1.4 billion ($1.69 per diluted share) in Q3 2012.
- 2Oil and Gas segment earnings grew by 19% year-over-year to $2.4 billion in Q3 2013.
- 3Domestic oil and gas realized prices saw significant increases: crude oil up over 13% and natural gas up 32% in Q3 2013 compared to Q3 2012.
- 4Company-wide operating costs decreased to $13.64 per barrel for the nine months of 2013, down from $14.99 per barrel for the full year 2012.
- 5Chemical segment earnings improved to $181 million in Q3 2013 from $162 million in Q3 2012, driven by higher margins in polyvinyl chloride and vinyl chloride monomer.
- 6Midstream segment earnings increased to $212 million in Q3 2013, up from $156 million in Q3 2012, reflecting improved marketing, trading, and pipeline operations.
- 7Despite a slight decrease in Middle East/North Africa production volumes, overall daily oil and gas production remained stable year-over-year at approximately 767,000 BOE.