Occidental Petroleum Beats Earnings Estimates Following Rising Oil Prices

The Occidental Petroleum logo is displayed on a ground display at the New York Stock Exchange (NYSE) in New York, United States, April 30, 2019. REUTERS / Brendan McDermid

HOUSTON, Nov. 4 (Reuters) – U.S. producer Occidental Petroleum Corp (OXY.N) topped market estimates and more than doubled profit to $ 836 million in the third quarter from the previous three months, reported the company in a folder.

Oil producers posted higher results this quarter as commodity prices rebound from the coronavirus pandemic.

Shares of Occidental, up 95% this year, rose a fraction Thursday night to $ 33.90.

Occidental reported third quarter earnings per share of 65 cents. Adjusted earnings were 87 cents per share, beating the market consensus estimate of 66 cents per share, according to data from Refinitiv. The producer suffered a loss of $ 4.07 per share during the same period last year.

Occidental has “generated record free cash flow before working capital in each quarter of this year, enabling us to reduce debt and strengthen our balance sheet,” Managing Director Vicki Hollub said in a statement.

Occidental joins a group of U.S. oil producers using the proceeds of rising oil prices to reduce debt and increase free cash flow, with cash distribution to shareholders. It repaid $ 4.3 billion in long-term debt during the quarter, bringing it down to $ 30.92 billion.

Its chemicals business in the last quarter generated record profits and the company is forecasting pre-tax profit of $ 480 million for this quarter.

Fourth-quarter oil and gas production could be between 1.13 million and 1.16 million barrels per day, the company said, stable at slightly lower than third-quarter production from continuing operations. Production in the Permian Basin will be between 472,000 and 482,000 barrels of oil and gas per day, below the 499,000 barrels per day in the third quarter, he said.

Reporting by Sabrina Valle Editing by Marguerita Choy and Jonathan Oatis

Our standards: Thomson Reuters Trust Principles.


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Felix J. Dixon

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