Occidental beats profit estimates as higher oil prices offset output decline
OXY•Occidental reported adjusted third-quarter profit of $1.91 per share, above the $1.46 expected, as its realized oil price rose 32.6% to $85.91 per barrel while production fell 2.6% to 1.43 million boepd.
1. Profit and production
Occidental Petroleum reported adjusted profit of $1.91 per share for the three months ended September 30, exceeding expectations of $1.46. Its average realized oil price rose 32.6% to $85.91 per barrel, while average global production fell about 2.6% to 1.43 million barrels of oil equivalent per day.
2. Output outlook
The company forecast current-quarter production of 1.43 million to 1.47 million boepd, including 820,000 to 840,000 boepd from the Permian Basin. Piper Sandler analysts said the production guidance was slightly below expectations and domestic operating cost forecasts were higher than anticipated.
3. Carbon dioxide agreements
Occidental signed long-term agreements to source up to 2 million metric tons of carbon dioxide annually from two Delaware Basin carbon capture projects for oil recovery operations in the Permian Basin. Deliveries are expected to begin in 2029.
