- Q2 2014 net income of $1.4 billion, or
$1.82 per diluted share
- Q2 2014 core income of $1.4 billion, or
$1.79 per diluted share
- Q2 2014 record domestic oil production
of 278,000 barrels per day
Occidental Petroleum Corporation (NYSE:OXY) announced net income
for the second quarter of 2014 of $1.4 billion ($1.82 per diluted
share), compared with $1.3 billion ($1.64 per diluted share) for
the second quarter of 2013. Core income was $1.4 billion ($1.79 per
diluted share) for the second quarter of 2014, compared with $1.3
billion ($1.58 per diluted share) for the second quarter of
2013.
In announcing the results, Stephen I. Chazen, President and
Chief Executive Officer, said, "For the fourth consecutive quarter,
we have delivered strong domestic oil production growth, with
increases coming from both our Permian and California assets.
Domestic oil production was 278,000 barrels per day for the second
quarter of 2014. Excluding the effect from the Hugoton sale,
domestic oil production increased 21,000 barrels per day from the
second quarter of 2013 with our Permian Resources business growing
its oil production by over 21 percent. For the first half of 2014,
our cash flow from operations was $5.6 billion. Capital
expenditures, net of contributions from partners, were $4.7 billion
and we purchased approximately 16.6 million shares of our
stock.”
QUARTERLY
RESULTS
Oil and
Gas
Domestic core earnings were $1.1 billion pre-tax or $679 million
after-tax for the second quarter of 2014, compared to $1.0 billion
pre-tax or $635 million after-tax for the second quarter of 2013.
The current quarter domestic results reflected higher realized
prices across all products and higher oil volumes, partially offset
by higher operating costs and higher DD&A. The increase in
operating costs was due to increased maintenance activities and
higher costs for CO2, steam and power, which are influenced by
crude oil and natural gas prices. International core earnings were
$1.1 billion pre-tax or $576 million after-tax for the second
quarter of 2014, compared to $1.2 billion pre-tax or $641 million
after-tax for the second quarter of 2013. The current quarter
international results reflected lower oil volumes, partially offset
by higher oil prices and lower operating costs.
For the second quarter of 2014, total company average daily oil
and gas production volumes, excluding the Hugoton production,
averaged 736,000 barrels of oil equivalent (BOE), compared with
753,000 BOE in the second quarter of 2013. The sale of Hugoton
assets closed on April 30, 2014. Hugoton production averaged 6,000
BOE per day and 19,000 BOE per day for the second quarter of 2014
and 2013, respectively. Domestic average daily production increased
by 13,000 BOE to 464,000 BOE in the second quarter of 2014 compared
to 451,000 BOE in the second quarter of 2013. Domestic average oil
production increased by 21,000 barrels per day, primarily from
California and Permian Resources. International average daily
production decreased to 272,000 BOE in the second quarter of 2014
from 302,000 BOE in second quarter of 2013. The decrease primarily
resulted from insurgent activities in Colombia, continued field and
port strikes in Libya and lower cost recovery barrels in Iraq.
Total company average daily sales volumes decreased to 735,000 BOE
in the second quarter of 2014 from 745,000 BOE in the second
quarter of 2013, mainly due to the timing of liftings.
Worldwide realized crude oil prices increased by 3 percent to
$100.38 per barrel for the second quarter of 2014 compared with
$97.91 per barrel for the second quarter of 2013 and improved
slightly compared to the first quarter of 2014. Worldwide NGL
prices increased by 10 percent to $42.82 per barrel in the second
quarter of 2014, compared with $38.78 per barrel in the second
quarter of 2013, but decreased by 7 percent compared with $46.05 in
the first quarter of 2014. Domestic natural gas prices increased 12
percent in the second quarter of 2014 to $4.28 per MCF, compared
with $3.82 in the second quarter of 2013, and fell by 6 percent
compared with the first quarter of 2014.
Chemical
Chemical core earnings for the second quarter of 2014 were $133
million, compared to $144 million in the second quarter of 2013,
excluding the $131 million gain on the sale of our investment in
Carbocloro. The decrease in second quarter of 2014 earnings
reflected lower caustic soda prices driven by new chlor-alkali
capacity in the industry and higher natural gas costs, partially
offset by higher vinyl margins resulting from improvement in the
U.S. construction markets.
Midstream, Marketing
and Other
Midstream core earnings were $219 million for the second quarter
of 2014, compared with $48 million for the second quarter of 2013.
The increase in earnings reflected improved marketing and trading
performance.
Non-Core
Items
The second quarter of 2014 included a net non-core income
benefit of $27 million, which included a $341 million after-tax
gain from the sale of Hugoton oil and gas assets, a $300 million
after-tax charge for the impairment of certain non-producing
domestic oil and gas acreage and on-going costs related to the
California spin-off. The non-core items in the second quarter of
2013 provided a net income benefit of $46 million.
SIX-MONTH
RESULTS
Net income for the first six months of 2014 was $2.8 billion
($3.58 per diluted share), compared with $2.7 billion ($3.32 per
diluted share) for the same period in 2013. Core income for the
first six months of 2014 was $2.8 billion ($3.54 per diluted
share), compared with $2.6 billion ($3.27 per diluted share) for
the same period in 2013.
Oil and
Gas
Domestic core earnings were $2.1 billion pre-tax or $1.4 billion
after-tax for the first six months of 2014, compared to $1.9
billion pre-tax or $1.2 billion after-tax for the first six months
of 2013. The increase in domestic core earnings reflected higher
realized prices across all products and higher oil volumes,
partially offset by higher costs for CO2, steam and power and
higher DD&A. International core earnings were $2.2 billion
pre-tax or $1.1 billion after-tax for the first six months of 2014,
compared to $2.2 billion pre-tax or $1.2 billion after-tax for the
first six months of 2013. International core earnings reflected
lower Middle East/North Africa volumes, partially offset by lower
operating costs.
Oil and gas production volumes, excluding Hugoton production,
for the first six months of 2014 averaged 731,000 BOE per day,
compared with 749,000 BOE per day for the first six months of 2013.
Domestic daily production averaged 460,000 BOE and 455,000 BOE for
the first six months of 2014 and 2013, respectively. Average
domestic oil production increased by 15,000 barrels per day in the
first six months of 2014, compared to the first six months of 2013.
Average international daily production volumes decreased to 271,000
BOE for the first six months of 2014 from 294,000 BOE for the first
six months of 2013. The decrease was primarily due to insurgent
activities in Colombia, continued field and port strikes in Libya
and lower cost recovery barrels in Iraq. Total company daily sales
volumes averaged 726,000 BOE in the first six months of 2014,
compared with 736,000 BOE for 2013. Sales volumes were lower than
production volumes due to the timing of liftings in Middle
East/North Africa.
Worldwide realized crude oil prices rose by 2 percent to $99.70
per barrel for the first six months of 2014, compared with $97.99
per barrel for the first six months of 2013. Worldwide NGL prices
increased by 12 percent to $44.43 per barrel for the first six
months of 2014, compared with $39.52 per barrel for the first six
months of 2013. Domestic gas prices increased by 29 percent to
$4.43 per MCF for the first six months of 2014, compared to $3.44
per MCF for the first six months of 2013.
Chemical
Chemical core earnings were $269 million for the first six
months of 2014, compared with $303 million for the same period of
2013, excluding the $131 million gain on the sale of our investment
in Carbocloro. The lower earnings reflected lower caustic soda
prices, driven by new chlor-alkali capacity in the industry and
higher natural gas costs, partially offset by higher vinyl margins
and volume improvements across most products.
Midstream, Marketing
and Other
Midstream core earnings were $389 million for the first six
months of 2014, compared with $263 million for the same period of
2013. The increase in earnings reflected improved marketing and
trading performance.
About
Oxy
Occidental Petroleum Corporation is an international oil and gas
exploration and production company with operations in the United
States, Middle East/North Africa and Latin America regions.
Occidental is one of the largest U.S. oil and gas companies, based
on equity market capitalization. Occidental’s midstream and
marketing segment gathers, processes, transports, stores, purchases
and markets hydrocarbons and other commodities in support of
Occidental’s businesses. Occidental’s wholly owned subsidiary
OxyChem manufactures and markets chlor-alkali products and vinyls.
Occidental is committed to safeguarding the environment, protecting
the safety and health of employees and neighboring communities and
upholding high standards of social responsibility in all of the
company's worldwide operations.
Forward-Looking
Statements
Portions of this press release contain
forward-looking statements and involve risks and uncertainties that
could materially affect expected results of operations, liquidity,
cash flows and business prospects. Actual results may differ from
anticipated results, sometimes materially, and reported results
should not be considered an indication of future performance.
Factors that could cause results to differ include, but are not
limited to: global commodity pricing fluctuations; supply and
demand considerations for Occidental's products;
higher-than-expected costs; the regulatory approval environment;
reorganization or restructuring of Occidental's operations,
including any delay of, or other negative developments affecting,
the spin-off of California Resources Corporation; not successfully
completing, or any material delay of, field developments, expansion
projects, capital expenditures, efficiency projects, acquisitions
or dispositions; lower-than-expected production from development
projects or acquisitions; exploration risks; general economic
slowdowns domestically or internationally; political conditions and
events; liability under environmental regulations including
remedial actions; litigation; disruption or interruption of
production or manufacturing or facility damage due to accidents,
chemical releases, labor unrest, weather, natural disasters, cyber
attacks or insurgent activity; failure of risk management; changes
in law or regulations; or changes in tax rates. Words such as
“estimate,” “project,” “predict,” “will,” “would,” “should,”
“could,” “may,” “might,” “anticipate,” “plan,” “intend,” “believe,”
“expect,” “aim,” “goal,” “target,” “objective,” “likely” or similar
expressions that convey the prospective nature of events or
outcomes generally indicate forward-looking statements. You should
not place undue reliance on these forward-looking statements, which
speak only as of the date of this release. Unless legally required,
Occidental does not undertake any obligation to update any
forward-looking statements, as a result of new information, future
events or otherwise. Material risks that may affect Occidental's
results of operations and financial position appear in Part I, Item
1A “Risk Factors” of the 2013 Form 10-K. Occidental posts or
provides links to important information on its website at
www.oxy.com.
For further analysis of Occidental's quarterly performance,
please visit the website: www.oxy.com
Attachment 1 SUMMARY OF SEGMENT NET SALES AND
AFTER-TAX EARNINGS Second
Quarter Six Months ($ millions, except per-share
amounts)
2014 2013
2014
2013
SEGMENT NET SALES Oil and Gas
$ 4,807 $
4,721
$ 9,483 $ 9,161 Chemical
1,242 1,187
2,462 2,362 Midstream, Marketing and Other
530 269
965 722 Eliminations
(304 ) (215
)
(547 ) (411 ) Net Sales
$ 6,275 $ 5,962
$ 12,363
$ 11,834
SEGMENT EARNINGS - AFTER-TAX
Oil and Gas Domestic
$ 720 $ 635
$
1,394 $ 1,201 Foreign
576 641
1,128 1,177
Exploration
(36 ) (56 )
(68 ) (29 )
1,260 1,220
2,454
2,349 Chemical
84 172
170 271 Midstream, Marketing
and Other (a)
160 46
278 192
1,504 1,438
2,902 2,812 Unallocated Corporate Items
Interest expense, net
(15 ) (29 )
(34 )
(59 ) Income taxes
73 84
153 160 Other
(130 ) (166 )
(202 )
(227 )
Income from Continuing Operations (a)
1,432 1,327
2,819 2,686 Discontinued operations, net
(1 ) (5 )
2
(9 )
NET INCOME (a) $ 1,431 $
1,322
$ 2,821 $ 2,677
BASIC EARNINGS PER COMMON SHARE Income from continuing
operations
$ 1.83 $ 1.65
$ 3.58 $ 3.33
Discontinued operations, net
- (0.01 )
- (0.01 )
$ 1.83 $
1.64
$ 3.58 $ 3.32
DILUTED EARNINGS PER COMMON SHARE Income from continuing
operations
$ 1.82 $ 1.64
$ 3.58 $ 3.33
Discontinued operations, net
- -
- (0.01 )
$ 1.82 $
1.64
$ 3.58 $ 3.32
AVERAGE
COMMON SHARES OUTSTANDING BASIC
782.6 804.9
786.9
804.8 DILUTED
782.9 805.4
787.3 805.3
(a) Net income and income from continuing
operations represent amounts attributable to Common Stock, after
deducting non-controlling interest of $3 million and $5 million for
the second quarter and first six months of 2014, respectively.
Midstream segment earnings are presented net of these
non-controlling interest amounts.
Attachment 2 SUMMARY OF SEGMENT
PRE-TAX EARNINGS Second Quarter Six Months ($ millions)
2014 2013
2014 2013
SEGMENT EARNINGS - PRE-TAX
Oil and Gas Domestic
$ 1,132 $ 997
$
2,190 $ 1,886 Foreign
1,096 1,173
2,188 2,246
Exploration
(46 ) (70 )
(92 ) (112 )
2,182 2,100
4,286
4,020 Chemical
133 275
269 434 Midstream, Marketing
and Other (a)
219 48
389 263
2,534 2,423
4,944 4,717 Unallocated Corporate Items
Interest expense, net
(15 ) (29 )
(34 )
(59 ) Income taxes
(957 ) (901 )
(1,889
) (1,745 ) Other
(130 ) (166 )
(202 ) (227 )
Income from
Continuing Operations (a) 1,432 1,327
2,819 2,686
Discontinued operations, net
(1 ) (5 )
2 (9 )
NET INCOME (a)
$ 1,431 $ 1,322
$ 2,821
$ 2,677
(a) Net income and income from continuing
operations represent amounts attributable to Common Stock, after
deducting non-controlling interest of $3 million and $5 million for
the second quarter and first six months of 2014, respectively.
Midstream segment earnings are presented net of these
non-controlling interest amounts.
Attachment 3 SIGNIFICANT TRANSACTIONS AND EVENTS
AFFECTING EARNINGS Occidental's results of operations
often include the effects of significant transactions and events
affecting earnings that vary widely and unpredictably in nature,
timing and amount. Therefore, management uses a measure called
"core results," which excludes those items. This non-GAAP measure
is not meant to disassociate those items from management's
performance, but rather is meant to provide useful information to
investors interested in comparing Occidental's earnings performance
between periods. Reported earnings are considered representative of
management's performance over the long term. Core results is not
considered to be an alternative to operating income reported in
accordance with generally accepted accounting principles.
Second Quarter 2014 ($ millions) PRE-TAX
ReportedIncome
SignificantItems
CoreResults
Oil and Gas Domestic $ 1,132 $ (535 )
(a)
$ 1,068 471
(b)
Foreign 1,096 1,096 Exploration (46 ) (46 ) 2,182
2,118 Chemical 133 133 Midstream, Marketing and Other
219 219 Corporate Interest expense (15 ) (15 ) Other (130 )
17
(c)
(113 ) Taxes (957 ) 19 (938 ) Income from
continuing operations 1,432 (28 ) 1,404 Discontinued operations,
net (1 ) 1 - Net Income $ 1,431
$ (27 ) $ 1,404
Second Quarter 2014
($ millions) AFTER-TAX
ReportedIncome
SignificantItems
CoreResults
Oil and Gas Domestic $ 720 $ (341 )
(a)
$ 679 300
(b)
Foreign 576 576 Exploration (36 ) (36 ) 1,260 1,219
Chemical 84 84 Midstream, Marketing and Other 160 160
Corporate Interest expense (15 ) (15 ) Other (130 ) 13
(c)
(117 ) Unallocated taxes 73 73 Income from
continuing operations 1,432 (28 ) 1,404 Discontinued operations,
net (1 ) 1 - Net Income $ 1,431
$ (27 ) $ 1,404 Diluted Earnings Per Common
Share $ 1.82 $ 1.79 (a) Hugoton sale gain. (b)
Asset impairments. (c) Spin-off and other costs.
Attachment 4 SIGNIFICANT TRANSACTIONS AND EVENTS
AFFECTING EARNINGS Second Quarter 2013 ($
millions) PRE-TAX
ReportedIncome
SignificantItems
CoreResults
Oil and Gas Domestic $ 997 $ 997 Foreign 1,173 1,173 Exploration
(70 ) (70 ) 2,100 2,100 Chemical 275 $ (131 )
(a)
144 Midstream, Marketing and Other 48 48 Corporate
Interest expense (29 ) (29 ) Other (166 ) 55
(b)
(111 ) Taxes (901 ) 25 (876 ) Income from
continuing operations 1,327 (51 ) 1,276 Discontinued operations,
net (5 ) 5 - Net Income $ 1,322
$ (46 ) $ 1,276
Second Quarter 2013
($ millions) AFTER-TAX
ReportedIncome
SignificantItems
CoreResults
Oil and Gas Domestic $ 635 $ 635 Foreign 641 641 Exploration
(56 ) (56 ) 1,220 1,220 Chemical 172 $ (85 )
(a)
87 Midstream, Marketing and Other 46 46 Corporate
Interest expense (29 ) (29 ) Other (166 ) 34
(b)
(132 ) Unallocated taxes 84 84 Income from
continuing operations 1,327 (51 ) 1,276 Discontinued operations,
net (5 ) 5 - Net Income $ 1,322
$ (46 ) $ 1,276 Diluted Earnings Per Common
Share $ 1.64 $ 1.58 (a) Carbocloro sale gain.
(b) Employment charges related to
post-employment benefits for the Company's former Chairman and
termination of certain other employees and consulting
arrangements.
Attachment 5 SIGNIFICANT
TRANSACTIONS AND EVENTS AFFECTING EARNINGS Six Months
2014 ($ millions) PRE-TAX
ReportedIncome
SignificantItems
CoreResults
Oil and Gas Domestic $ 2,190 $ (535 )
(a)
$ 2,126 471
(b)
Foreign 2,188 2,188 Exploration (92 ) (92 ) 4,286
4,222 Chemical 269 269 Midstream, Marketing and Other
389 389 Corporate Interest expense (34 ) (34 ) Other (202 )
17
(c)
(185 ) Taxes (1,889 ) 19 (1,870 ) Income from
continuing operations 2,819 (28 ) 2,791 Discontinued operations,
net 2 (2 ) - Net Income $ 2,821
$ (30 ) $ 2,791
Six Months 2014 ($
millions) AFTER-TAX
ReportedIncome
SignificantItems
CoreResults
Oil and Gas Domestic $ 1,394 $ (341 )
(a)
$ 1,353 300
(b)
Foreign 1,128 1,128 Exploration (68 ) (68 ) 2,454
2,413 Chemical 170 170 Midstream, Marketing and Other
278 278 Corporate Interest expense (34 ) (34 ) Other (202 )
13
(c)
(189 ) Unallocated taxes 153 153 Income from
continuing operations 2,819 (28 ) 2,791 Discontinued operations,
net 2 (2 ) - Net Income $ 2,821
$ (30 ) $ 2,791 Diluted Earnings Per Common
Share $ 3.58 $ 3.54 (a) Hugoton sale gain. (b)
Asset impairments. (c) Spin-off and other costs.
Attachment 6 SIGNIFICANT TRANSACTIONS AND EVENTS
AFFECTING EARNINGS Six Months 2013 ($
millions) PRE-TAX
ReportedIncome
SignificantItems
CoreResults
Oil and Gas Domestic $ 1,886 $ 1,886 Foreign 2,246 2,246
Exploration (112 ) (112 ) 4,020 4,020 Chemical
434 $ (131 )
(a)
303 Midstream, Marketing and Other 263 263 Corporate
Interest expense (59 ) (59 ) Other (227 ) 55
(b)
(172 ) Taxes (1,745 ) 25 (1,720 ) Income from
continuing operations 2,686 (51 ) $ 2,635 Discontinued operations,
net (9 ) 9 - Net Income $ 2,677
$ (42 ) $ 2,635
Six Months 2013 ($
millions) AFTER-TAX
ReportedIncome
Significant Items
CoreResults
Oil and Gas Domestic $ 1,201 $ 1,201 Foreign 1,177 1,177
Exploration (29 ) (29 ) 2,349 2,349 Chemical
271 $ (85 )
(a)
186 Midstream, Marketing and Other 192 192 Corporate
Interest expense (59 ) (59 ) Other (227 ) 34
(b)
(193 ) Unallocated taxes 160 160 Income from
continuing operations 2,686 (51 ) 2,635 Discontinued operations,
net (9 ) 9 - Net Income $ 2,677
$ (42 ) $ 2,635 Diluted Earnings Per Common
Share $ 3.32 $ 3.27 (a) Carbocloro sale gain.
(b) Employment charges related to
post-employment benefits for the Company's former Chairman and
termination of certain other employees and consulting
arrangements.
Attachment 7 SUMMARY OF CAPITAL
EXPENDITURES AND DD&A EXPENSE Second Quarter Six
Months ($ millions)
2014 2013
2014 2013
CAPITAL
EXPENDITURES (a) $ 2,658 $ 2,210
$ 4,927 $ 4,280
DEPRECIATION, DEPLETION AND
AMORTIZATION OF ASSETS
$ 1,317 $ 1,303
$ 2,583
$ 2,562
(a) Includes 100 percent of the capital
for BridgeTex Pipeline, which is being consolidated in Oxy's
financial statements. Our partner contributes its share of the
capital. The Company's net capital expenditures after these
reimbursements and inclusion of our contributions for the Chemical
joint venture cracker were $2.5 billion and $2.2 billion for the
second quarter of 2014 and 2013, respectively, and $4.7 billion and
$4.2 billion for the six months ended June 30, 2014 and 2013,
respectively.
Attachment 8 SUMMARY OF OPERATING
STATISTICS - PRODUCTION Second Quarter Six Months
2014 2013
2014 2013
NET OIL, LIQUIDS AND GAS
PRODUCTION PER DAY United States Oil (MBBL) California
97 88
96 88 Permian Resources
40 33
38
34 Permian EOR
110 112
110 112 Midcontinent and Other
29 22
27
22 Total excluding Hugoton
276 255
271
256 Hugoton
2 6
4
6 Total
278 261
275 262
NGLs (MBBL) California
18 21
18 20 Permian Resources
12 11
11 10 Permian EOR
29 28
29 29
Midcontinent and Other
12 14
14 15 Total excluding Hugoton
71 74
72 74 Hugoton
1 3
2 3 Total
72 77
74 77 Natural Gas (MMCF) California
243 260
243 262 Permian Resources
120 121
117 126
Permian EOR
34 39
37 42 Midcontinent and Other
305 312
305
318 Total excluding Hugoton
702 732
702 748
Hugoton
16 60
35
60 Total
718 792
737 808
Latin America Oil (MBBL) - Colombia
19 28
24
29 Natural Gas (MMCF) - Bolivia
12 13
12 13
Middle East / North Africa Oil (MBBL) Dolphin
7 7
6 6 Oman
70 67
68 66 Qatar
69 75
68 67 Other
28 44
27 45
Total
174 193
169 184 NGLs (MBBL) Dolphin
7 7
7 7 Natural Gas (MMCF) Dolphin
144 145
138 139 Oman
40 56
40 56 Other
236 232
234
238 Total
420 433
412 433
Barrels of Oil Equivalent excluding Hugoton (MBOE)
736 753
731 749 Hugoton
6
19
12 19
Barrels of
Oil Equivalent (MBOE) 742 772
743 768
Attachment 9 SUMMARY OF OPERATING STATISTICS -
SALES Second Quarter Six Months
2014 2013
2014 2013
NET OIL, LIQUIDS AND GAS SALES PER DAY
United States Oil (MBBL)
278 261
275
262 NGLs (MBBL)
72 77
74 77 Natural Gas (MMCF)
720 795
738 810
Latin America Oil
(MBBL) - Colombia
24 26
28 28 Natural Gas
(MMCF) - Bolivia
12 13
12 13
Middle East /
North Africa Oil (MBBL) Dolphin
7 7
6 6 Oman
71 63
68 68 Qatar
66 80
69 66 Other
24 36
17
32 Total
168 186
160 172 NGLs
(MBBL) Dolphin
7 7
7 7 Natural Gas (MMCF)
420 433
412 433
Barrels of Oil
Equivalent excluding Hugoton (MBOE) 735 745
726 736 Hugoton
6 19
12 19
Barrels of Oil
Equivalent (MBOE) 741 764
738 755
Occidental Petroleum CorporationMelissa E. Schoeb
(media)melissa_schoeb@oxy.com713-366-5615orChristopher M. Degner
(investors)christopher_degner@oxy.com212-603-8185
Occidental Petroleum (NYSE:OXY)
Historical Stock Chart
From Mar 2024 to Apr 2024
Occidental Petroleum (NYSE:OXY)
Historical Stock Chart
From Apr 2023 to Apr 2024