Output: Production hedges oil prices! Occidental Petroleum Corporation (OXY.US) exceeded expectations in Q2 performance and is concurrently advancing a $950 million asset divestiture plan to reduce debt.

On Wednesday, Occidental Petroleum Corporation (OXY.US) announced second-quarter earnings that exceeded Wall Street expectations, despite a drop in oil prices, as production growth effectively offset this unfavorable impact. Data showed that the company achieved quarterly revenue of $6.46 billion as of June 30, surpassing analysts' expectations of $6.24 billion, with adjusted earnings per share of $0.39, significantly higher than the average analyst forecast of $0.29. Global average daily production reached 1.4 million barrels of oil equivalent, representing an approximately 11% increase from the same period last year. Last week, oil giants Exxon Mobil Corporation (XOM.US) and Chevron Corporation (CVX.US) also reported better-than-expected quarterly earnings, similarly benefiting from production growth offsetting the decline in oil prices. Of note, Occidental Petroleum Corporation has completed $950 million in new asset divestiture transactions since the beginning of the second quarter, with $370 million already delivered. As part of its divestiture plan, the company agreed in July to sell a portion of its Midland Basin natural gas gathering assets to a subsidiary of Enterprise Products Partners (EPD.US) for $580 million. The energy company stated that it has repaid $3 billion in debt so far this year. Propelled by the positive earnings report, the company's stock price rose over 2% in after-hours trading on Wednesday. Financially, the significant increase in natural gas prices has supported the company's earnings. Data showed that natural gas prices doubled year-on-year, reaching $1.33 per thousand cubic feet. However, the average realized price of crude oil decreased by around 20% year-on-year to $63.76 per barrel. This is mainly due to Brent crude oil futures prices dropping by about 20% to around $70 per barrel in the second quarter, with President Trump's tariff policies exacerbating global uncertainty and thus restraining oil demand. As a leading company in the U.S. shale oil sector, Occidental Petroleum Corporation has important production capacities in the Permian Basin, DJ Basin, and Gulf of Mexico. While strengthening its core oil and gas production business, the company is also actively advancing its carbon management strategy. "The excellent performance in the second quarter confirms the operational strength of our diversified asset portfolio," company executives stated. "While pursuing operational excellence, we are steadily advancing our dual-track strategy of traditional energy and low-carbon business development." Looking ahead, Occidental Petroleum Corporation also announced a $100 million reduction in the midpoint of its capital expenditure forecast for the year and a $50 million cut in international operating costs.