Occidental beats its profit estimates thanks to rising oil prices – 05/08/2024 at 00:04

Occidental beats its profit estimates thanks to rising oil prices – 05/08/2024 at 00:04
Occidental beats its profit estimates thanks to rising oil prices – 05/08/2024 at 00:04

((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))

(Adds higher Q2 outlook, Permian production target, pending acquisition in paragraphs 1, 4-5)

Occidental Petroleum OXY.N on Tuesday reported profit above analysts’ consensus estimate for the first quarter and forecast a 7% increase in oil and gas production for the second quarter.

Profit fell to $604 million, or 63 cents per share, from $1.07 billion, or $1.09 per share, as its midstream business fell into the red, Chemicals operating profit fell by 45% and oil activities fell by 20%.

However, adjusted earnings of 63 cents per share for the quarter ended March 31 beat analysts’ average estimate of 60 cents per share, according to LSEG data.

The company forecast second-quarter production to increase to between 1,232 and 1,272 thousand barrels of oil and gas per day, but it forecast larger losses in its midstream operations. Second-quarter production at the midpoint of its forecast would be 7% higher.

Production in the Permian Basin is expected to increase by about 3% overall. These forecasts do not take into account the acquisition of CrownRock, a shale oil producer in the Permian Basin, for an amount of 12 billion dollars. A regulatory review ( ) delayed the completion of the transaction until the second half of the year.

Occidental’s first quarter oil and gas production declined year over year as the effects of winter weather and outages in the Gulf of Mexico offset a slight increase in the average selling price of the crude oil.

Occidental pumped 1.17 million barrels of oil and gas per day in the quarter, up from 1.22 million a year ago, the company said. Production was in line with the company’s previous forecasts.

Oil and gas operating profit was $1.28 billion, up from $1.614 billion a year ago. The midstream unit posted a loss of $64 million, compared with a profit of $36 million a year ago. Chemicals brought in $260 million, up from $472 million a year ago.

The quarterly average price collected for its oil rose to $76.04 per barrel from $74.22 per barrel a year earlier.

Shares were down 42 cents in late trading, after closing at $65.07.

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