Occidental Petroleum Corporation announced its financial results for the third quarter of 2024, ending September 30, 2024.
Key Financial Metrics
| Metric | Q3 2024 | Q2 2024 | QoQ Change | Consensus |
|---|---|---|---|---|
| Total Revenue | $8.45 billion | $7.67 billion | 10.19% | $7.23 billion |
| Earnings Per Share (EPS) | $0.76 | $0.90 | -15.56% | $0.74 |
Occidental reported total revenue of $8.45 billion for Q3 2024, surpassing the Wall Street consensus estimate of $7.23 billion. However, its EPS of $0.76 fell short of Q2 2024's EPS of $0.90, amid a challenging pricing environment for crude oil and lower realized pricing in certain segments.
Revenue Performance by Segment
Specific revenue figures for the segments were not provided in the earnings document, but segment earnings showed that the Oil and Gas segment decreased while the Midstream and Marketing segment saw improved earnings compared to the previous quarter. The Chemical segment remained relatively flat due to unchanged market conditions.
Key Developments and Operational Highlights
- Occidental completed the acquisition of CrownRock, L.P., adding to its portfolio in the Permian Basin.
- Sold non-core assets in the Powder River and Delaware Basins, generating net proceeds of $779 million.
- Occidental also sold 19.5 million of its limited partner units in Western Midstream Partners, L.P., realizing a pre-tax gain of $489 million.
Officers’ Comments
According to Occidental's management, the company's strategy to enhance its asset base and engage in significant acquisitions like CrownRock will propel its long-term value creation. The company remains committed to maintaining its production base and advancing low-carbon technologies.
Dividends and Share Repurchase Program
- Occidental declared dividends of $606 million for the nine months ended September 30, 2024.
- The company has approximately $1.2 billion remaining under its share repurchase program authorized in 2023.
Forward Guidance
Occidental did not provide specific forward guidance for future quarters.
Stock Price Movement
Following the earnings release, Occidental's stock saw a decrease of approximately 0.97%.
This quarterly report highlights Occidental's strategic acquisition and asset divestiture efforts, reflecting its ongoing focus on strengthening its core operations and navigating market challenges.
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