Occidental Petroleum exceeds profit forecasts for the quarter on higher production
Occidental Petroleum surpassed Wall Street's expectations for the third quarter profit on Monday as higher production helped U.S. shale oil producer to counter lower oil prices.
The U.S. produced more oil and gas in August than ever before, despite Brent crude falling by over 13% during the period reported due to OPEC+'s increased supply and a slowing of global demand.
Occidental reported a quarterly average of global production of 1,46 million barrels equivalent per day (MMboepd), an increase from the 1.41 MMboepd ayear earlier.
The average realized oil price fell from $75.33 per barrel to $64.78 in the period July-September, down from $75.33 one year ago.
Exxon Mobil, Chevron and other large rivals also exceeded analysts' expectations in the third quarter profit thanks to higher production.
Occidental anticipates that production will be between 1,44 MMboepd and 1,48 MMboepd during the current quarter. According to LSEG data, analysts expected an average production of 1,44 MMboepd in the fourth quarter.
Last month, Occidental's OxyChem was sold to Warren Buffett and Berkshire Hathaway, for $9.7 Billion. This marked its largest divestment to date to reduce debt following years of expensive acquisitions.
During the third quarter, the company paid off $1.3 billion in debt. As of September 30, the company had a long-term debt of $20.85billion.
Occidental, based in Houston, posted an adjusted profit per share of 64 cents for the three-month period ended September 30 compared to expectations of 52 cents. Reporting by Vallari Srivastava, Bengaluru. Editing by Tasim Zaid and Sriraj Kalluvila.
(source: Reuters)