Occidental Results Beat Expectations On Texas Production
WILLISTON, N.D., Jan 29 (Reuters) - Oil and natural gas producer Occidental Petroleum Corp reported better-than-expected quarterly results on Thursday as its Texas shale assets boosted total production even as crude oil prices slumped.
The company, which also operates pipelines and produces chemicals, plans deep spending cuts thanks to the lower oil prices, while pumping more oil and natural gas this year in a sign of improving well economics.
Occidental will slash its 2015 capital budget by 33 percent to $5.8 billion, and ramp up output by 6 percent to 10 percent.
Acreage in the Permian basin will get the bulk of the company's attention this year, with less focus on North Dakota Bakken shale and holdings in Bahrain, Chief Executive Stephen Chazen said in a statement. Oil output jumped 42 percent in its Permian business, he said.
"We think it is imprudent to accelerate some of these opportunities in the current low product price environment," he said.
The company reported a fourth-quarter net loss of $3.41 billion, or $4.41 per share. It earned an income of $1.6 billion, or $2.04 a share, in the fourth quarter of 2013.
The fourth-quarter 2014 results included a spinoff of units last month to form California Resources Corp, making year-ago comparisons difficult.
Excluding those deals, Occidental said it earned $560 million, or 72 cents per share, in the fourth quarter, compared to $1.2 billion, or $1.46 a share, a year earlier.
By that measure, analysts had expected earnings of 68 cents per share, according to Thomson Reuters I/B/E/S.
Quarterly production grew 4 percent to 616,000 barrels of oil equivalent.
Earnings in the chemicals unit rose 25 percent, thanks to higher polyvinyl chloride margins, and earnings in the pipeline business rose 59 percent on higher volumes.
Shares of Occidental rose 2.5 percent in premarket trading.
(Reporting by Ernest Scheyder; Editing by Bernadette Baum)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- I Squared Eyes Full Ownership of Europe Gas Storage Firm
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension