By October 28, 2015 Read More →

Occidental Petroleum announces Q3 2015 financial results

Permian Basin represents over 50% of total oil/gas spending for Occidental Petroleum

Occidental Petroleum

Occidental Petroleum

HOUSTON – Occidental Petroleum Corporation announced core income for the third quarter of 2015 of $24 million or $0.03 per diluted share.

Reported income was a loss of $3.42 per diluted share for the quarter, including $2.6 billion after tax charges, which reflect the sharp decline in the oil and gas futures p0rice curves, as well as projects that management decided not to pursue.

Operating cash flow for the quarter was $1.0 billion, with total cash on the balance sheet at quarter-end of $4.3 billion.

Occidental Petroleum

Stephen I. Chazen, president and CEO, Occidental Petroleum Corporation.

“Our third quarter daily production increased to 689,000 BOE from last year’s 595,000 BOE, an increase of 16 per cent. Permian Resources and the start up of Al Hosn drove nearly all of the 94,000 BOE per day year-over-year growth,” said Stephen I. Chazen, president and CEO.

“We have made a strategic decision to exit the Williston Basin and will continue to evaluate and minimize our involvement in non-core operations in the Middle East and North Africa. This will result in improved operating cash flow, lower future capital commitments, lower G&A costs and better overall financial returns for our remaining asset base.”

Chazen says that while oil and NGL prices declined sequentially in the third quarter, operating cash flow increased to $1 billion from $800 million in the second quarter of 2015 because capital spending was cut $300 million to $1.2 billion in the third quarter compared to $1.5 billion in the second quarter.

“Permian Resources continues to represent over 50 per cent of total oil and gas spending. We continue to achieve drilling efficiencies and reduce unit operating costs,” Chazen said in a press release.

“Wolfcamp well costs in the Delaware Basin are down over 40 percent and our Permian Resources unit operating costs are down 18 percent from a year ago.”

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