Occidental Petroleum Expects Earnings Impact

Occidental Petroleum Corporation (Occidental) has released a summary of earnings considerations that are expected to impact its results for the first quarter of 2024.

Despite facing challenges such as an ongoing third-party outage in the eastern Gulf of Mexico, Occidental delivered strong operational performance. The company's total production is anticipated to remain within the guidance range for the first quarter of 2024.

A notable event that affected the first quarter of 2024 results was the temporary halt of certain operations in the eastern Gulf of Mexico at the request of the main pass oil gathering system operator. Occidental is currently awaiting instructions from the system operator to restart production, pending final regulatory approvals.

The estimates of first quarter 2024 results impacted by the unplanned downtime are as follows: Gulf of Mexico oil and gas sales volumes: 90 thousand barrels of oil equivalent per day (Mboed) Domestic operating cost: $10.31 per barrel of oil equivalent (Boe) Total company production oil: 50.6% Total company production gas: 25.5% Adjusted total effective tax rate: 28-30% Adjusted current effective tax rate: 32-34% * Average diluted shares outstanding: 948.6 million shares

In terms of realized prices, the average realized prices for various commodities are as follows: Oil: * United States: $75.54 per barrel * International: $78.29 per barrel * Total worldwide: $76.04 per barrel NGL (Natural Gas Liquids): * United States: $21.17 per barrel * International: $28.33 per barrel * Total worldwide: $22.14 per barrel * Natural gas: * United States: $1.61 per thousand cubic feet (Mcf) * International: $1.87 per Mcf * Total worldwide: $1.68 per Mcf

Furthermore, the average index prices for the same commodities are as follows: WTI oil: $76.96 per barrel Brent oil: $81.83 per barrel * NYMEX gas: $2.35 per Mcf

Occidental's average realized prices as a percentage of average index prices are as follows: Worldwide oil as a percentage of average WTI: 99% Worldwide oil as a percentage of average Brent: 93% Worldwide NGL as a percentage of average WTI: 29% Domestic natural gas as a percentage of average NYMEX: 69%

These figures provide a detailed insight into Occidental's operational and financial performance for the first quarter of 2024, reflecting the impact of various factors on the company's results. As a result of these announcements, the company's shares have moved 0.5% on the market, and are now trading at a price of $68.92. For more information, read the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.