Summary
Occidental Petroleum Corporation (OXY) has filed a Form 8-K on October 15, 2019, to provide preliminary financial and operational results for the third quarter ended September 30, 2019. These results are subject to customary closing procedures and will be finalized on November 4, 2019. A significant event impacting this quarter is the completion of the Anadarko Petroleum Corporation (Anadarko) merger on August 8, 2019. Anadarko's results will be included from the merger closing date, with its African assets designated as discontinued operations and partially sold to Total S.A. The company is also introducing a new financial reporting metric, "Adjusted Income," which excludes significant, unpredictable transactions, to provide a clearer view of ongoing operational performance. This preliminary report highlights expected production figures, realized commodity prices, and significant charges associated with the Anadarko merger and other operational adjustments. Investors should note that these are preliminary figures and actual results may differ.
Key Highlights
- 1Preliminary Q3 2019 results announced, with final results expected November 4, 2019.
- 2Anadarko merger completed on August 8, 2019; Anadarko's results included from closing date.
- 3Anadarko's African Assets reported as discontinued operations; sale of Mozambique assets to Total completed.
- 4Introduction of 'Adjusted Income' as a non-GAAP measure to exclude merger-related and other significant items for comparability.
- 5Expected Q3 2019 continuing operations production of 1,100 – 1,120 MBOED, exceeding initial expectations due to DJ Basin performance.
- 6Preliminary Q3 domestic onshore realized prices: Oil $54.00/BBL, NGLs $13.90/BBL, Natural Gas $1.20/MCF.
- 7Significant pre-tax charges expected for Q3, including $950 million for merger, debt financing, and severance costs, plus other impairments and write-offs totaling over $300 million.