Occidental Petroleum Corp. (OXY), an oil and gas exploration and production company, Thursday said third-quarter profit declined from the prior year, hit by lower revenues and decrease in worldwide oil realized prices. Yet adjusted earnings topped Wall Street estimates.
Net income declined to $1.21 billion or $1.55 per share from $1.58 billion or $1.96 per share for the third quarter of 2013.
Core income was $1.2 billion or $1.58 per share, while it totaled $1.6 billion or $1.97 per share in the prior year. On average, 25 analysts polled by Thomson Reuters expected earnings of $1.57 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales declined to $5.996 billion from $6.449 billion last year. Analysts expected revenues of $6.11 billion.
Total company average daily oil and gas production volumes, excluding Hugoton production, increased by 6,000 barrels of oil equivalent to 755,000 BOE from 749,000 BOE in the third quarter of 2013.
Oil and gas sales fell to $4.652 billion from $5.018 billion. Worldwide realized crude oil prices decreased 9 percent to $94.68 per barrel.
Domestic average daily production was 475,000 BOE, compared to 458,000 BOE last year. Domestic average daily oil production increased to 282,000 barrels from 262,000 barrels, primarily from Permian Resources and California.
Domestic core earnings dropped to $538 million from $790 million, reflecting lower crude oil realized prices, higher operating costs and DD&A expense, partially offset by higher crude oil volumes.
Chemical sales edged up to $1.232 billion from $1.200 billion, but pre-tax core earnings declined, amid lower caustic soda prices and lower overall margins.
Stephen Chazen, president and CEO, said, "For the fifth consecutive quarter, we have delivered strong year-over-year domestic oil production growth, bolstered by strong results from Permian Resources, which grew by over 26 percent...During the quarter, we have experienced about a 6 percent decline in our worldwide oil realized prices, due to volatility in the marker prices."
The stock, which closed at $89.70 on Wednesday, rose 1.5 percent in pre-market activity.
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