- Strong operational performance drove operating cash flow of $3.8 billion and operating cash flow before working capital of $3.1 billion
- Capital spending of $1.7 billion and contributions from noncontrolling interest of $47 million resulted in quarterly free cash flow before working capital of $1.5 billion
- Total company production of 1,412 Mboed exceeded the mid-point of guidance by 22 Mboed
- Midstream and marketing exceeded the mid-point of guidance for pre-tax adjusted income by $145 million
- OxyChem exceeded guidance with pre-tax income of $304 million
- Earnings per diluted share of $0.98 and adjusted earnings per diluted share of $1.00
- Repaid $4.0 billion of debt, achieving nearly 90% of Occidental's short-term debt reduction target
Occidental announced net income attributable to common stockholders of $964 million, or $0.98 per diluted share and adjusted income attributable to common stockholders of $977 million, or $1.00 per diluted share for the third quarter of 2024.
'Strong operational performance across all segments has resulted in our highest quarterly operating cash flow this year,' said President and Chief Executive Officer Vicki Hollub. 'The integration of CrownRock is off to a great start in terms of personnel and operations, and we have made significant progress in our deleveraging efforts, achieving nearly 90% of our short-term debt reduction target.'
QUARTERLY RESULTS
Oil and Gas
Oil and gas pre-tax income for the third quarter of 2024 was $1.2 billion, compared to pre-tax income of $1.6 billion for the second quarter of 2024. Included in third quarter pre-tax income were losses on sales of assets and other, net of $572 million, primarily related to the sale of non-core U.S. onshore assets. Excluding items affecting comparability, third quarter adjusted oil and gas income increased from the prior quarter due to higher sales volumes, partially offset by lower realized commodity prices. For the third quarter of 2024, average WTI and Brent marker prices were $75.09 per barrel and $78.41 per barrel, respectively. Average worldwide realized crude oil prices decreased by 6% from the prior quarter to $75.33 per barrel. Average worldwide realized natural gas liquids prices decreased by 4% from the prior quarter to $20.47 per barrel. Average domestic realized gas prices decreased by 26% from the prior quarter to $0.40 per thousand cubic feet (Mcf).
Total average global production of 1,412 thousand barrels of oil equivalent per day (Mboed) for the third quarter of 2024 exceeded the mid-point of guidance by 22 Mboed, led by Permian, which exceeded the mid-point of production guidance by 30 Mboed with average production of 729 Mboed. Rockies & Other Domestic and International average daily production volumes were 321 Mboed and 226 Mboed, respectively. Gulf of Mexico average daily production volumes of 136 Mboed were slightly below the lower end of guidance, primarily due to the weather impacts.
OxyChem
OxyChem earned pre-tax income of $304 million for the third quarter of 2024, which was modestly above guidance. Third quarter OxyChem income, compared to second quarter of 2024 income, remained essentially flat as market conditions remained relatively unchanged.
Midstream and Marketing
Midstream and marketing pre-tax results for the third quarter of 2024 reflected income of $631 million, which included gains on the sale of common units representing limited partner interests in Western Midstream Partners, LP (WES) of $490 million and net derivative gains of $142 million, partially offset by an impairment charge of $21 million. Excluding items affecting comparability, the third quarter adjusted midstream and marketing results exceeded mid-point guidance by $145 million. WES equity method investment income, excluding items affecting comparability, for the third quarter was $136 million.
Source: Occidental
