Occidental Petroleum Corporation today reported net income and adjusted income attributable to common stockholders of $1.0 billion, or $1.03 per diluted share, for the second quarter of 2024.
Vicki Hollub, President and Chief Executive Officer, commented, “The strength of our operational performance has driven impressive financial results for the second quarter of 2024. We are enthusiastic about continuing to build on this positive momentum with the addition of CrownRock to our diverse asset portfolio.
For Q2 2024, Occidental’s pre-tax income from oil and gas operations was $1.6 billion, up from $1.2 billion in Q1 2024. Excluding items affecting comparability, adjusted oil and gas income increased from the previous quarter due to higher domestic crude oil volumes, lower depreciation, depletion, and amortization rates, and improved Gulf of Mexico operations following an extended third-party outage in mid-April. This was partially offset by lower domestic gas prices and higher transportation costs. Average WTI and Brent marker prices were $80.56 per barrel and $84.95 per barrel, respectively. Average worldwide realized crude oil prices increased by 5% to $79.89 per barrel, while average worldwide realized natural gas liquids prices decreased by 4% to $21.23 per barrel. Average domestic realized gas prices fell by 66% to $0.54 per thousand cubic feet (Mcf).
Total global production averaged 1,258 thousand barrels of oil equivalent per day (Mboed), exceeding the midpoint of guidance by 6 Mboed. This was driven by strong performance in the Permian and Gulf of Mexico, which reported average production of 587 Mboed and 138 Mboed, respectively. Rockies & Other Domestic and International average daily production volumes were 306 Mboed and 227 Mboed, respectively.
OxyChem
OxyChem achieved pre-tax income of $296 million in Q2 2024. Adjusted for comparability, the increase from Q1 2024 was primarily due to higher realized prices for caustic soda and polyvinyl chloride, along with improved sales volumes across most product lines. This was partially offset by increased ethylene costs.
Midstream and Marketing
Midstream and marketing pre-tax income for Q2 2024 was $116 million. Excluding items affecting comparability, the results exceeded guidance by over $180 million. Equity method investment income from WES, excluding items affecting comparability, was $163 million. The increase from Q1 2024 reflected higher gas marketing income due to improved gas transportation spreads from the Permian to the Gulf Coast and reduced equity method investment losses in low-carbon ventures.
Supplemental Non-GAAP Measures
This press release includes references to adjusted income (loss), cash flow from operations before working capital, capital expenditures net of noncontrolling interest, and free cash flow before working capital. These are non-GAAP financial measures and should not be considered as alternatives to GAAP financial measures. Definitions of these measures and reconciliations to the comparable GAAP financial measures are provided in the financial schedules of this press release. Occidental’s definitions of these measures may differ from those used by other companies in the industry.
