Benefiting from increased production, Occidental Petroleum Corporation (OXY.US) Q3 revenue and profits surpassed expectations.

The American oil and gas company Occidental Petroleum Corporation (OXY.US) announced that its third quarter profit exceeded Wall Street's expectations, but total revenue for the company fell by 14% due to asset sales and a decline in its chemical business. Adjusted profit for Q3 was $977 million, or $1 per share, lower than the $1.13 billion, or $1.18 per share, in the same period last year. Analysts had previously expected earnings per share of 74 cents, according to data compiled by LSEG. The oil company reported third quarter revenue of $7.17 billion, a 0.2% increase from the expected $7.12 billion. Occidental Petroleum Corporation's quarterly profit includes one-time losses from asset sales and gains from stock sales and derivatives. The company stated that due to losses from asset sales, its operating profit from oil and gas extraction decreased by 25% to $1.2 billion. The company lost $572 million in sales. In July of this year, the company sold assets to Permian Resources (PR.US) and an unidentified buyer for a total price of $970 million. Strong operational performance led to operating cash flow of $3.8 billion. One factor contributing to the decrease in earnings was a 6% drop in average crude oil prices to $75.33 per barrel, and a 26% drop in average domestic natural gas prices to $0.40 per thousand cubic feet. These declines reflect broader market trends impacting global energy prices. The proceeds from the sales helped reduce the heavy debt burden incurred from the $12 billion acquisition of shale oil and gas producer CrownRock. Long-term debt at the end of the third quarter was $25.46 billion, reduced by $4 billion through cash and asset sales. Repaying $4 billion in debt means completing almost 90% of Occidental Petroleum Corporation's short-term debt reduction target. The operating profit of the company's chemical business decreased from $3.73 billion a year ago to $3.04 billion. The segment benefited from derivatives and gained $490 million from the sale of shares of pipeline operator Western Midstream Partners (WES.US). Due to the acquisition of CrownRock, Occidental Petroleum Corporation's oil production increased by 15.7% to 1.4 million barrels per day. The company stated that the full-year production from the expanded Permian Basin will reach 661,000 barrels per day, higher than the 588,000 barrels per day a year ago. It is worth noting that production in the Permian Basin exceeded expectations by 30,000 barrels of oil equivalent per day. However, production in the Gulf of Mexico plummeted due to weather-related interruptions. These differences highlight the importance of geographic diversity. The rapidly increasing production may threaten efforts to curb global warming by the middle of the century. The company's total production is 1.12 million barrels of oil equivalent per day, 22,000 barrels of oil equivalent per day higher than the midpoint guidance. Occidental Petroleum Corporation outlined several strategic focuses, emphasizing its leadership in sustainability, especially through carbon management projects. The plan to launch the Stratos direct air capture facility underscores its commitment to environmental initiatives, aligning with its long-term renewable energy goals. The company remains cautious of fluctuations in commodity prices, which pose a risk to revenue stability. The integration of CrownRock and other assets requires careful planning. Management is preparing for these challenges and maintains a cautious but optimistic attitude towards capital expenditures and integration risks. Therefore, Occidental Petroleum Corporation intends to maximize its production capacity while enhancing efficiency in its core assets.