Occidental Petroleum Loss Misses Street Forecast As Output Drops
Nov 1(Reuters) - Occidental Petroleum Corp posted a larger-than-expected quarterly loss on Tuesday, as the Houston-based company curtailed production due to the slump in oil prices.
Shares of the company fell more than 3 percent to $70.54 in morning trading after the third-quarter loss was reported.
Like industry peers, Oxy has had to contend with low oil prices in the past two years, cautiously deciding where to invest. The company has also cut costs, like many of its peers, to boost results.
"Our efforts to focus on efficiency and capital discipline are paying off," Chief Executive Vicki Hollub said on a conference call with investors.
Oxy has largely focused spending on the Permian Basin of West Texas, where it already is one of the largest oil producers. On Monday, the company said it had paid $2 billion cash for 35,000 acres (14,164 hectares) in the Permian and stakes in some enhanced oil recovery projects.
Still, those investments do little to boost current results. Oxy's production fell 12 percent to 605,000 barrels of oil equivalent (boe) per day during the third quarter.
The company said its average worldwide realized crude oil prices were $41.49 per barrel, down 13.2 percent from a year earlier.
Oxy's quarterly net loss narrowed to $241 million, or 32 cents per share, from $2.61 billion, or $3.42 per share. The year-earlier quarter included a $2.6 billion after-tax charge related to scrapped projects and a sharp decline in oil and gas prices.
Adjusted loss of 15 cents per share was larger than the average analyst estimate of 11 cents, according to Thomson Reuters I/B/E/S.
Revenue fell 15.8 percent to $2.73 billion, but came in above expectations of $2.69 billion.
Oxy said it aims to spend $3.3 billion to $3.8 billion in 2017, up from the planned $3 billion for 2016.
(Reporting by Vishaka George in Bengaluru and Ernest Scheyder in Houston; Editing by Ted Kerr and Will Dunham)
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
- How Likely Is an All-Out War in the Middle East Involving the USA?
- Rooftop Solar Now 4th Largest Source of Electricity in Australia
- US Confirms Reimposition of Oil Sanctions against Venezuela
- Analyst Says USA Influence on Middle East Seems to be Fading
- EU, Industry Players Ink Charter to Meet Solar Energy Targets
- Russian Ships to Remain Banned from US Ports
- Brazil Court Reinstates Petrobras Chair to Divided Board
- EIB Lends $425.7 Million for Thuringia's Grid Upgrades
- Var Energi Confirms Oil Discovery in Ringhorne
- Seatrium, Shell Strengthen Floating Production Systems Collaboration
- An Already Bad Situation in the Red Sea Just Got Worse
- What's Next for Oil? Analysts Weigh In After Iran's Attack
- USA Regional Banks Dramatically Step Up Loans to Oil and Gas
- EIA Raises WTI Oil Price Forecasts
- How Likely Is an All-Out War in the Middle East Involving the USA?
- Venezuela Authorities Arrest Two Senior Energy Officials
- Namibia Expects FID on Potential Major Oil Discovery by Yearend
- Oil Markets Were Already Positioned for Iran Attack
- Is The Iran Nuclear Deal Revival Project Dead?
- Petrobras Chairman Suspended
- Oil and Gas Executives Predict WTI Oil Price
- An Already Bad Situation in the Red Sea Just Got Worse
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil and Gas Execs Reveal Where They See Henry Hub Price Heading
- Equinor Makes Discovery in North Sea
- Macquarie Strategists Warn of Large Oil Price Correction
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- Standard Chartered Reiterates $94 Brent Call
- Chevron, Hess Confident Embattled Merger Will Close Mid-2024
- Analysts Flag 'Remarkable Feature' of 2024 Oil Price Rally