HomeNewsOccidental Petroleum Beats Q3 Estimates on Higher Production

Occidental Petroleum Beats Q3 Estimates on Higher Production

11/11/2023

(Reuters) — Occidental Petroleum on Tuesday beat analysts' third-quarter profit estimates on strong U.S. oil production, but its results were well below a year ago due to lower energy prices and weaker chemical and pipeline results.

The oil and gas company reported a $1.18 a share profit compared to Wall Street analysts’ forecast for an 84-cent profit, according to LSEG. Adjusted earnings of $1.13 billion were below last year’s $2.47 billion.

U.S. oil producers are reporting weaker third-quarter profits on a drop in oil and gas prices from a year ago. The company sold its oil last quarter for an average $80.70 per barrel, down from $83.64 per barrel a year-ago.

Shares were up 70 cents a share in late trading after closing down 2.5% at $60.20 apiece.

The U.S. oil and gas producer pumped 1.22 million barrels of oil and gas per day (MMboe/d), well above the 1.19 MMboe/d midpoint it was forecast in August. It also raised its full-year production guidance by 11,000 bpd.

Results were also helped by asset sales of $142 million after tax, including properties in the Permian Basin.

Its chemical and midstream units fell compared to a year ago. Midstream swung to a loss of $130 million from a $104 million profit a year ago.

Profit in its chemicals business fell to $373 million from $580 million a year ago.

Separately, Occidental said investment firm BlackRock agreed to invest $550 million in a proposed direct air capture carbon project in Texas.

WTI crude prices increased 9.4% on a sequential basis during the quarter, on the back of the extension of production cuts by OPEC+ members led by Saudi Arabia and Russia.

On an adjusted basis, the company earned $1.18 per share, compared with average analysts' estimate of 84 cents per share, according to LSEG data.

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