Occidental Petroleum beats third-quarter profit estimates on higher production
Adds background, profit by business unit, contribution from asset sales, and volume forecast from paragraph 2
HOUSTON, Nov 12 (Reuters) - U.S. oiland gas firmOccidental Petroleum OXY.N beat Wall Street estimates for third-quarter profit on Tuesday, but overall earnings fell 14% on losses from asset sales and a drop in chemical results.
Oil companies have reported lower year-on-year third-quarter results on weaker oil and gas prices. Occidental's quarterly profit included one-time asset sales losses and gains on share sales and derivatives.
Occidental said its operating profit from pumping oil and gas fell 25% to $1.2 billion on losses from asset sales. It took a $572 million loss on the sales. It sold properties in July to Permian Resources PR.N and an unidentified buyer for combined $970 million.
Proceeds from the sales helped reduce a heavy debt load from the $12 billion acquisition of closely held shale oil and gas producer CrownRock. Long-term debt at the end of the quarter was $25.46 billion, down $4 billion through cash and asset sales.
The company's operating profit from chemicals fell to $304 million, from $373 million a year ago. Its midstream business benefited from derivatives and a $490 million gain from selling shares in pipeline operator Western Midstream PartnersWES.N.
Occidental's oil production rose 15.7% to 1.4 million barrels of oil and gas per day on its CrownRock purchase. Full-year production from expanded Permian properties should reach 661,000 barrels of oil and gas per day, up from 588,000 bpd a year ago, the company said.
The company reported an adjusted profit of $977 million, or $1 per share, for the quarter ended Sept. 30, down from $1.13 billion, or $1.18 a share, a year ago.Analysts had forecast a per share profit of74 cents, according to data compiled by financial firm LSEG.
Reporting by Tanay Dhumal in Bengaluru and Gary McWilliams in Houston; Editing by Maju Samuel and David Gregorio
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
