Occidental to Exit Bakken, Reduce Participation in Some Overseas Fields

Energy

Published: October 28, 2015 10:50 am

Last Updated: April 28, 2020 3:00 am

Occidental Petroleum Corp. (NYSE: OXY) reported third-quarter 2015 results before markets opened Wednesday. The independent energy producer posted quarterly adjusted (core) diluted earnings per share (EPS) of $0.03 on revenues of $3.25 billion. In the same period a year ago, the company reported EPS of $1.34 on revenues of $4.9 billion. Third-quarter results also compare to the Thomson Reuters consensus estimates for a net loss of $0.01 on revenues of $3.2 billion.

On a GAAP basis, Occidental posted a net loss of $3.42 a share, including after-tax charges of $2.6 billion reflecting the sharp decline in future prices for oil and gas.

The company’s CEO, Stephen I. Chazen, said that Occidental has made a “strategic decision to exit the Williston Basin and will continue to evaluate and minimize our involvement in non-core operations in the Middle East and North Africa.” The company’s production rose by 94,000 barrels a day year-over-year in the third quarter, with nearly all the increase coming from the Permian Basin and the company’s Al Hosn project.

Chazen continued:

Although oil and NGL prices declined sequentially in the third quarter, our operating cash flow increased to $1.0 billion from $800 million in the second quarter of 2015. We reduced our capital spending another $300 million to $1.2 billion in the third quarter compared to $1.5 billion in the second quarter. Permian Resources continues to represent over 50 percent of total oil and gas spending. We continue to achieve drilling efficiencies and reduce unit operating costs. Wolfcamp well costs in the Delaware Basin are down over 40 percent and our Permian Resources unit operating costs are down 18 percent from a year ago.

Occidental’s average quarterly West Texas Intermediate (WTI) and Brent marker prices were $46.43 per barrel and $51.17 per barrel, respectively, for the third quarter of 2015, a decrease of about 20% on a sequential quarterly basis and over 50% on a year-over-year basis.

ALSO READ: The 10 Most Profitable Companies in the World

The company did not provide guidance, but the analysts’ consensus estimates call for EPS of $0.02 on revenues of $3.31 billion in the fourth quarter. For the full year, analysts are looking for EPS of $0.28 on revenues of $13.16 billion.

The stock traded up about 4% Wednesday morning to $73.01. The stock’s 52-week range is $63.60 to $86.37, and the consensus price target is $78.75.

The Average American Is Losing Their Savings Every Day (Sponsor)

If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4% today, and inflation is much higher. Checking accounts are even worse.

Every day you don’t move to a high-yield savings account that beats inflation, you lose more and more value.

But there is good news. To win qualified customers, some accounts are paying 9-10x this national average. That’s an incredible way to keep your money safe, and get paid at the same time. Our top pick for high yield savings accounts includes other one time cash bonuses, and is FDIC insured.

Click here to see how much more you could be earning on your savings today. It takes just a few minutes and your money could be working for you.