Occidental beats first-quarter oil price estimates

The headquarters of Occidental Petroleum Corp is pictured in Los Angeles, California September 16, 2013. REUTERS/Mario Anzuoni

May 10 (Reuters) – U.S. oil and gas producer Occidental Petroleum Corp (OXY.N) beat Wall Street profit estimates and turned a profit after a loss a year ago, buoyed by soaring oil price.

The Houston-based company is the latest oil producer to benefit from high commodity prices, despite falling production volumes. Fuel prices jumped following sanctions imposed on Russia for its invasion of Ukraine in February.

Occidental posted adjusted earnings of $2.1 billion – or $2.12 per diluted share – above the $2.03 per share estimate by analysts consulted by Refinitiv IBES.

Occidental, a leading producer in the prolific Permian Basin of West Texas and New Mexico, said its average realized oil price in the first quarter was $91.91 a barrel, up from 65% compared to last year.

Its average daily production was 1.08 million barrels of oil equivalent per day (boepd), compared to 1.14 million boepd in the same quarter last year.

The company’s net profit was boosted by a non-cash tax benefit related to its 2019 acquisition of Anadarko Petroleum. It posted net income of $4.7 billion, or $4.65 per diluted share, compared with a loss of $346 million, or 36 cents per share, a year ago.

Occidental, which took on $38 billion in debt when it bought Anadarko, said its debt fell to $25.87 billion at the end of the quarter, from $29.43 billion in the quarter. previous.

Reporting by Ruhi Soni in Bengaluru; Editing by Devika Syamnath and Richard Pullin

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