Occidental Petroleum Q3 Earnings Tops On Improved production, Says BlackRock Will Invest $550M For Texas Project

Occidental Petroleum Corp OXY reported Q3 FY23 revenue of $7.40 billion, beating the consensus of $7.01 billion.

Production came in at 1,220 Mboed, exceeding the mid-point of guidance by 34 Mboed. 

Rockies & Other Domestic and Gulf of Mexico daily production volumes exceeded guidance at 263 Mboed and 146 Mboed, respectively.

Permian volumes stood at the high end of guidance at 588 Mboed, and International volumes came in just below guidance at 223 Mboed in the quarter.

Oil and gas pre-tax income came in at $2.0 billion, vs. $3.3 billion a year ago, with average worldwide realized crude oil prices coming in at $80.70 per barrel and average worldwide realized NGL prices stood at $21.04 per barrel. 

OxyChem's pre-tax income fell to $373 million from $580 million the prior year, and Midstream and marketing posted a pre-tax loss of $(130) million vs. $104 million the prior year.

Adjusted EPS of $1.18, surpassing the consensus of $0.84.

Also Read: Warren Buffett's Bullish Move Fails To Stir Occidental Petroleum Stock - Focus Shifts to Q3 Earnings Report

Operating cash flow stood at $3.1 billion vs. $4.3 billion a year ago. 

The company has completed around 60% of its $3.0 billion share repurchase program and retired over 15% of the preferred equity in the quarter.

As of September 30, 2023, cash and cash equivalents stood at $649 million.

In conjunction with the earnings, OXY stated that the investment firm BlackRock Inc BLK planned to invest $550 million on behalf of clients for the development of STRATOS, a Direct Air Capture (DAC) facility, in Ector County, Texas.

Related: Pushing Boundaries: Occidental & ADNOC Begin Preliminary Engineering Study For Direct Air Capture Facility In The UAE

Price Action: OXY shares are trading higher by 1.15% at $60.89 premarket Wednesday.

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