Occidental Petroleum Corporation
) reported second-quarter 2014 adjusted earnings of $1.79 per
share, surpassing the Zacks Consensus Estimate of $1.75 by 2.3%. On
a year-over-year basis, quarterly earnings increased 13.3%
primarily on the back of higher revenues and a lower share
Occidental Petroleum Corporation - Earnings
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On a GAAP basis, the company's earnings per share were $1.82
compared with $1.64 a year ago. The variance between GAAP and
adjusted earnings was due to the combined impact of an after-tax
gain related to the sale of Hugoton oil and gas assets, an
after-tax charge for the impairment of certain non-producing
domestic oil and gas acreage and continuing costs associated with
the spin-off of the Californian operations.
In the second quarter, Occidental Petroleum's total revenue was
$6,275 million, beating the Zacks Consensus Estimate of $5,991
million by 4.7%. The top line increased 5.2% from $5,962 million a
The outperformance was driven by strong contribution from all its
segments - Oil and Gas (up 1.8% year over year), Chemical (up 4.6%)
and Midstream, Marketing and Other (up 97%).
Production, Sales and Realized Prices
In the quarter under review, Occidental Petroleum's average daily
net oil, liquids and gas production volume was 742,000 barrels of
oil equivalents (BOE). A 3.9% year-over-year decline was primarily
due to lower production from the company's international operations
as a result of continual field and port strikes in Libya, insurgent
activities in Colombia and a decrease in cost recovery barrels in
Iraq. This was partially offset by strong contribution from its
domestic operations, primarily from the Californian and Permian
The company's daily sales volume in the reported quarter was
741,000 BOE, down 3% from 764,000 BOE a year ago mainly owing to
lower oil and natural gas sales in the Middle East/North Africa,
and a decline in natural gas sales in the U.S.
Realized price for worldwide crude oil edged up 2.5% to $100.38 per
barrel from the prior-year figure of $97.91 per barrel.
Worldwide realized natural gas liquids (NGL) prices were $42.82 per
barrel, up 10.4% from $38.78 per barrel a year ago.
increased 12% year over year to $4.28 per thousand cubic feet
As of Jun 30, 2014, Occidental Petroleum had long-term debt
(including current maturities) of $6.8 billion versus $6.9 billion
as of Dec 31, 2013. The company's total debt-to-capitalization
ratio was 13%, lower than the Dec 31, 2013 level.
During the first half of 2014, the company's cash from operations
was $5.6 billion, down from $6.2 billion in the prior-year period.
In the second quarter 2014, Occidental Petroleum's total capital
expenditure was $2.7 billion compared with $2.2 billion in the
Hess Corporation (
) reported adjusted second-quarter 2014 earnings of $1.38 per
share, surpassing the Zacks Consensus Estimate of $1.20.
Murphy Oil Corporation (
) reported second-quarter 2014 adjusted earnings of 90 cents per
share, missing the Zacks Consensus Estimate of $1.13 by 20.4%.
Occidental Petroleum currently has a Zacks Rank #3 (Hold). However,
a better-ranked stock in the same industry is ConocoPhillips (
), which carries a Zacks Rank #2 (Buy).
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