01—Abstract
Summary
Summary of the 8-K filed October 9, 2024. Cited figures are marked; the original filing is the authoritative source.
Occidental Petroleum (OXY) filed an 8-K on October 9, 2024, furnishing Exhibit 99.1, a preliminary summary of "Earnings Considerations" that management believes will affect its third quarter 2024 results.
Under Item 2.02, the company stresses that this is not a comprehensive results release and not an estimate of Q3 2024 earnings, and that figures remain subject to finalization of the quarter-close process. The information is furnished rather than filed, so it is not subject to Section 18 liability. The most concrete disclosures are operational and price-related.
Average diluted shares outstanding for Q3 2024 were 975.7 million. Worldwide realized oil averaged $75.33a/Bbl (U.S. $74.81, International $78.54), realizing roughly 100% of average WTI ($75.09) and 96% of average Brent ($78.41). Worldwide NGL realized $20.47/Bbl, about 27% of WTI, and worldwide natural gas realized $0.76/Mcf, with domestic gas at roughly 17% of the NYMEX average of $2.37/Mcf.
The weak gas and NGL realizations, particularly domestically, are a notable drag relative to oil. For investors, the filing is a modest-information update: it confirms a stable share count and oil pricing near benchmark, while highlighting weak domestic gas and NGL price capture.
It also references the recently completed CrownRock acquisition and the company's debt-reduction priorities as risk factors. Because the filing does not provide production volumes, costs, or net income, it should be read alongside the full Q3 2024 earnings release and 10-Q.
02—Key points
Key Highlights
- Q3 2024 average diluted shares outstanding of 975.7 million.
- Worldwide realized oil price of $75.33/Bbl, roughly 100% of average WTI ($75.09) and 96% of average Brent ($78.41).
- International oil realizations ($78.54/Bbl) exceeded U.S. realizations ($74.81/Bbl).
- Worldwide NGL realized price of $20.47/Bbl, only about 27% of average WTI; U.S. NGL at $19.50/Bbl vs. International at $28.48/Bbl.
- Natural gas realizations were weak: worldwide $0.76/Mcf, with domestic gas at about 17% of the NYMEX average ($2.37/Mcf).
- The filing is preliminary and explicitly excludes an earnings estimate, production data, and cost metrics, so it does not provide a full view of Q3 performance.
- Risk factors cite debt repayment or refinancing, the recently completed CrownRock acquisition, and the company's ability to monetize select assets.
03—Questions
Frequently Asked Questions
Does this 8-K report Occidental's Q3 2024 earnings?
No. The filing furnishes a preliminary summary of factors management believes will affect Q3 2024 results. It states that it is not an estimate of Q3 2024 earnings, is not comprehensive, and is subject to finalization of the company's financial reporting process. Investors should wait for the full earnings release and Form 10-Q for reported results.
What oil price did Occidental realize in Q3 2024?
Worldwide average realized oil price was $75.33/Bbl, with U.S. at $74.81/Bbl and International at $78.54/Bbl. This was roughly equal to average WTI of $75.09/Bbl and about 96% of average Brent of $78.41/Bbl.
Why were natural gas and NGL realizations low?
The filing shows domestic natural gas realizing only about 17% of the NYMEX average ($2.37/Mcf), with worldwide gas at $0.76/Mcf. NGL realized about 27% of WTI worldwide, at $20.47/Bbl. The filing does not explain the causes, but these figures point to weak domestic gas and NGL pricing relative to benchmarks.
How many shares were used for Q3 2024 per-share metrics?
Average diluted shares outstanding for Q3 2024 were 975.7 million, which is the denominator investors should use for per-share earnings calculations once the final results are reported.
What risks does the filing highlight for investors?
The forward-looking statements section flags debt repayment and refinancing, the impact of credit ratings and interest rates, commodity price volatility, OPEC actions, integration risks from the recently completed CrownRock acquisition, asset monetization, potential impairments, and regulatory and environmental liabilities.
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