01—Abstract
Summary
Summary of the 8-K filed July 10, 2024. Cited figures are marked; the original filing is the authoritative source.
Occidental Petroleum (OXY) furnished an 8-K on July 10, 2024 under Item 2.02 that provides a preliminary summary of factors management expects to affect its second quarter 2024 results, as set out in Exhibit 99.1 ("Earnings Considerations").
The document is explicitly not a full earnings release or an estimate of Q2 2024 earnings. It is preliminary, may not capture all adjustments or charges, and remains subject to finalization of the company's Q2 close. Its main content is operating data: average diluted shares of 958.9 million and realized prices for the quarter.
Realized pricing was broadly in line with benchmarks for oil and weak for gas and NGLs. Worldwide oil realized $79.89a/Bbl, about 99% of average WTI ($80.56) and 94% of average Brent ($84.95). Worldwide NGL realized $21.23/Bbl, only about 26% of WTI, and U.S. natural gas realized $0.54/Mcf against NYMEX at $1.99/Mcf, or roughly 27%.
Gas and NGL realizations were thus a small share of benchmark prices, which is typical for the company's U.S. gas and NGL mix but weighs on blended revenue per barrel of oil equivalent. For investors, the filing is a useful data point for reconciling Q2 2024 production and revenue, but it does not provide earnings, cash flow, or guidance.
The forward-looking-statement caveats highlight risks tied to debt reduction, the CrownRock acquisition, commodity price volatility, and OPEC actions. Investors should await the full Q2 2024 earnings release and 10-Q for reported results and management commentary.
02—Key points
Key Highlights
- Preliminary Q2 2024 Earnings Considerations furnished under Item 2.02 and Exhibit 99.1; explicitly not an estimate of Q2 2024 earnings and subject to finalization.
- Average diluted shares outstanding for Q2 2024 were 958.9 million.
- Worldwide realized oil price of $79.89/Bbl, about 99% of average WTI ($80.56) and 94% of average Brent ($84.95).
- Worldwide realized NGL price of $21.23/Bbl, roughly 26% of average WTI; international NGL ($28.11) well above U.S. NGL ($20.19).
- U.S. natural gas realized $0.54/Mcf versus NYMEX average of $1.99/Mcf (about 27%); worldwide gas realized $0.92/Mcf, with international gas at $1.91/Mcf.
- Forward-looking risk factors cite the CrownRock acquisition, debt reduction, commodity price volatility, and OPEC actions.
- No guidance, earnings, or cash flow figures are provided; the information is furnished, not filed, under the Exchange Act.
03—Questions
Frequently Asked Questions
Does this 8-K report Occidental's Q2 2024 earnings?
No. The filing provides a preliminary summary of factors management expects to affect Q2 2024 results. It states it is not comprehensive and is not an estimate of Q2 2024 earnings. Reported results would come in the full earnings release and Form 10-Q.
How did Occidental's realized oil prices compare with benchmarks in Q2 2024?
Worldwide realized oil was $79.89/Bbl, about 99% of average WTI ($80.56) and 94% of average Brent ($84.95). The Brent discount was wider because Brent traded at a premium to WTI that quarter.
Why were natural gas and NGL realizations so low relative to benchmarks?
U.S. natural gas realized $0.54/Mcf against NYMEX at $1.99/Mcf (about 27%), and worldwide NGL realized about 26% of WTI. These figures reflect regional pricing differentials, transportation and processing considerations, and the company's product mix. The filing does not break down the specific causes.
Does this filing change Occidental's share count or capital structure?
It reports average Q2 2024 diluted shares of 958.9 million. It does not announce new share issuance, buybacks, or changes to debt. The forward-looking statements do refer to debt repayment and refinancing as ongoing priorities.
Is this information considered filed under securities laws?
No. The company states the content of the 8-K and Exhibit 99.1 is not deemed filed for Section 18 of the Exchange Act and is not incorporated by reference into other filings unless expressly referenced.
04—Continue