Summary
Occidental Petroleum Corporation (OXY) reported its first-quarter 2014 financial results, showcasing a slight increase in net income to $1.4 billion ($1.75 per diluted share) compared to $1.355 billion ($1.68 per diluted share) in the first quarter of 2013. This performance was primarily driven by a robust increase in the Oil and Gas segment earnings, which rose to $2.1 billion from $1.9 billion year-over-year. The company's Oil and Gas segment benefited from higher domestic commodity prices (oil, NGLs, and gas) and increased worldwide oil volumes, although this was partially offset by lower international oil prices and rising domestic operating costs and DD&A. Production volumes saw a slight decrease overall due to reduced domestic gas drilling and geopolitical issues impacting Middle East/North Africa output, but higher realized prices helped to bolster segment earnings. The Chemical and Midstream segments experienced a decline in earnings compared to the prior year quarter.
Key Highlights
- 1Net income increased to $1.4 billion ($1.75/share) in Q1 2014 from $1.355 billion ($1.68/share) in Q1 2013.
- 2Oil and Gas segment earnings grew to $2.1 billion in Q1 2014, up from $1.9 billion in Q1 2013.
- 3Higher domestic commodity prices (oil, NGLs, gas) and increased global oil volumes were key drivers for the Oil and Gas segment.
- 4Production volumes declined slightly to 745,000 BOE/day from 763,000 BOE/day year-over-year, impacted by reduced domestic gas drilling and international operational issues.
- 5Worldwide realized crude oil price was $99.00/barrel in Q1 2014, a modest increase from $98.07/barrel in Q1 2013.
- 6Chemical segment earnings decreased to $136 million from $159 million, primarily due to lower caustic soda prices.
- 7Midstream segment earnings declined to $170 million from $215 million, attributed to lower marketing and trading performance.