Occidental Petroleum Q2 Earnings Highlights: Warren Buffett Favorite Beats Revenue, EPS Estimates

Oil stock Occidental Petroleum OXY reported second-quarter financial results after market close Wednesday.

Here are the key highlights.

What Happened: Occidental reported second-quarter revenue of $6.82 billion, which beat a Street consensus estimate of $6.80 billion according to data from Benzinga Pro.

Quarterly earnings per share of $1.03 beat analysts' estimates of 77 cents per share.

The company said it had second-quarter operating cash flow of $2.4 billion. Production of 1,258 Mboed beat the company's mid-point of guidance by 6 Mboed.  

“The strength of operational performance resulted in impressive financial results for the second quarter of 2024," Occidental CEO Vicki Hollub said.

The company's Oil and Gas segment saw pre-tax income of $1.6 billion, up from $1.2 billion in the first quarter. Higher domestic crude oil volumes and lower depreciation led to the increase, the company said. Average worldwide realized crude oil prices were up 5% from the prior quarter, and natural gas liquids were down 4% from the previous quarter.

The company's OxyChem segment had pre-tax income of $296 million, up from the first quarter with higher realized prices and increased sales volume.

Midstream and Marketing segment adjusted pre-tax income was $163 million and up from the first quarter. The segment saw higher gas marketing income due to improved gas transportation spreads from the Permian to the Gulf Coast, the company said.

Read Also: Warren Buffett’s Oil Bet Hits Slick Patch: Death Cross Looms Over Occidental Before Q2 Earnings

What's Next: The company said it is maintaining its full-year production guidance, excluding CrownRock, even with the expected divestiture of 15 Mboed in the fourth quarter.

"We are excited to continue building on this positive momentum across our deep and diverse asset portfolio with the addition of CrownRock," Hollub said.

OXY Price Action: Occidental Petroleum shares are up 1% to $56.68 in after-hours trading Wednesday, versus a 52-week trading range of $55.04 to $71.18.

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