Occidental Petroleum Profit Jumps
Occidental Petroleum Corp on Tuesday reported a quarterly profit that beat analysts' estimates, helped by a surge in Permian basin production and higher realized prices for its crude.
Production from its Permian resources unit rose 57 percent to 250,000 barrels of oil equivalent per day (boe/d) in the fourth quarter, boosted by its investments in the basin.
A recovery in global oil prices since the end of 2016 led to a resurgence in U.S. shale activity centered around the Permian basin of Texas and New Mexico. U.S. recently edged past Saudi Arabia and Russia, to become the world's top oil producer.
Occidental's Average production was up about 13 percent at 700,000 barrels of oil equivalent per day (boe/d).
Revenue from its midstream and marketing unit rose to about $1.30 billion from $410 million a year earlier.
U.S. crude prices were 7 percent higher on average in the fourth quarter, compared with a year earlier.
The company's adjusted profit rose to $922 million, or $1.22 per share, in the fourth quarter ended Dec. 31 from $313 million, or 41 cents per share, a year earlier.
Analysts on average had estimated the company to post a profit of $1.14 per share, according to IBES data from Refinitiv.
Occidental recorded impairment charges on its Qatar assets of $220 million.
(Reporting by Debroop Roy in Bengaluru; Editing by Anil D'Silva)