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OCCIDENTAL PETROLEUM CORP /DE/ 8-K Report, Financial Results (Feb 14, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 14, 2024
Period End
February 14, 2024
Securities
OXYOXY-WT
In the record · 2016–202610-K1210-Q328-K158

OXY filed 12 annual reports (10-K), 32 quarterly reports (10-Q) and 158 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Mar ’18Mar ’18
  2. Material agreement8-K · Mar ’20Mar ’20
  3. Leadership change8-K · Mar ’22Mar ’22
  4. Leadership change8-K · May ’26May ’26

01—Abstract

Summary

Summary of the 8-K filed February 14, 2024. Cited figures are marked; the original filing is the authoritative source.

Occidental Petroleum (OXY) reported fourth-quarter 2023 results on February 14, 2024, with reported net income attributable to common stockholders of $1.0 billiona ($1.08 per diluted share) and adjusted income of $710 million ($0.74 per diluted share).

The reported figure was boosted by about $319 millionb in after-tax items affecting comparability, primarily a $283 million after-tax fair value gain tied to the Carbon Engineering acquisition. Operating cash flow was $3.2 billion, cash flow from operations before working capital was $2.5 billion, and free cash flow before working capital was $1.1 billion after $1.4 billion of capital spending net of noncontrolling interest. For full-year 2023, reported EPS was $3.90 and adjusted EPS was $3.70, with free cash flow before working capital of $5.5 billion.

Operationally, total company production of 1,234 Mboed beat the midpoint of guidance by 8 Mboed despite a third-party outage in the eastern Gulf of Mexico. Year-end 2023 worldwide proved reserves rose to 4.0 billion BOE from 3.8 billion BOE, with all-in reserves replacement of 137% for the year and a three-year average of 183%. OxyChem's pre-tax income of $250 millionc exceeded guidance, though it declined from the prior quarter after a planned outage at Ingleside, Texas.

Midstream and marketing swung to $182 milliond of pre-tax income from a loss in Q3. Management highlighted a 22% increase in the quarterly dividend to $0.22 per share, the announced CrownRock acquisition described as cash-flow accretive and focused on Permian assets, and the closing of Carbon Engineering.

The 8-K itself only furnishes the press release under Item 2.02 and is not deemed filed under the Exchange Act. The release's forward-looking statements flag risks including commodity price volatility, indebtedness, and acquisition integration.

02—Key points

Key Highlights

  1. Reported EPS of $1.08 and adjusted EPS of $0.74 for Q4 2023; the gap was driven mainly by a $283 million after-tax Carbon Engineering fair value gain.
  2. Operating cash flow of $3.2 billion and free cash flow before working capital of $1.1 billion for the quarter, after $1.4 billion of capex net of noncontrolling interest.
  3. Production of 1,234 Mboed beat the guidance midpoint by 8 Mboed despite a third-party outage in the Gulf of Mexico.
  4. Year-end 2023 proved reserves of 4.0 billion BOE, up from 3.8 billion BOE, with 2023 all-in reserves replacement of 137%.
  5. Quarterly dividend raised 22% to $0.22 per share.
  6. OxyChem pre-tax income of $250 million beat guidance, although down from $373 million in Q3 due to higher costs and a planned outage.
  7. CrownRock acquisition announced as cash-flow accretive, adding Permian Basin assets; Carbon Engineering acquisition closed.

03—Questions

Frequently Asked Questions

  1. How did Occidental perform in Q4 2023 on an adjusted basis?

    Adjusted income attributable to common stockholders was $710 million, or $0.74 per diluted share, compared with reported net income of $1.0 billion ($1.08 per diluted share). The difference reflects about $319 million of after-tax items affecting comparability, mainly the Carbon Engineering fair value gain.

  2. Is the company generating strong cash flow?

    Q4 operating cash flow was $3.2 billion and cash flow from operations before working capital was $2.5 billion. After $1.4 billion of capex net of noncontrolling interest, free cash flow before working capital was $1.1 billion. For full-year 2023, that figure was $5.5 billion.

  3. What does the CrownRock acquisition mean for investors?

    The company announced CrownRock as a cash-flow accretive deal that strengthens its U.S. onshore portfolio with Permian Basin assets. The release does not give deal terms, so investors should review the separate announcement and related filings for price and financing details.

  4. Did the dividend change?

    Yes. The quarterly dividend increased by 22% to $0.22 per share, signaling management's confidence in cash generation and its commitment to shareholder returns.

  5. What risks are highlighted in the release?

    The forward-looking statements cite commodity price volatility, indebtedness and the need to generate sufficient cash flow, acquisition integration risks (including CrownRock), operational and regulatory risks, geopolitical events, and climate-related liabilities. Results could differ materially from expectations.

04—Continue

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