• 4 minutes Energy Armageddon
  • 6 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 12 minutes "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 11 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 14 hours Wind droughts
  • 4 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 2 days Kazakhstan Is Defying Russia and Has the Support of China. China is Using Russia's Weakness to Expand Its Own Influence.
  • 2 days Oil Prices Fall After Fed Raises Rates
  • 11 days How Far Have We Really Gotten With Alternative Energy
  • 4 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 10 days "Russian oil executive and Putin critic Ravil Maganov dead after mysterious six-story fall" - The New York Post
  • 2 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 7 days Beware the Left's 'Degrowth' Movement (i.e. why Covid-19 is Good)
  • 10 days The Federal Reserve and Money...Aspects which are not widely known

Occidental Petroleum Bucks Oil Profit Trend With Lower Q2 Profit

Occidental Petroleum reported a net profit of $3.6 billion for the second quarter of the year, down from $4.7 billion for the first quarter, boasting the highest quarterly free cash flow.

The adjusted income attributable to shareholders, however, was higher in the second quarter than the first, at $3.2 billion versus $2.1 billion for the first quarter.

"Oxy completed another quarter with strong operational and financial performance across all of our businesses. We generated $4.2 billion of free cash flow before working capital in the second quarter, our highest quarterly free cash flow to date. We also achieved a significant milestone as we surpassed our near-term debt reduction goal and activated our share repurchase program," chief executive Vicki Hollub said in the company's second-quarter press release.

During the same quarter, the company repaid $4.8 billion in debt and bought back some $1.1 billion worth of shares by the end of July this year.

Like other oil companies, Oxy has been reaping the rewards of higher oil prices and a guarded approach to production growth. All across the U.S. shale patch—and in Big Oil's world, of course—companies are reporting record cash flows and reducing debt and repurchasing shares. One Scotiabank analyst even called the cash flow situation in shale oil "phenomenal".

Of course, oil prices have been instrumental in this phenomenal cash flow performance, enhancing other financial metrics as well. Oxy reported pre-tax profit from continuing operations of $4.1 billion for the second quarter of the year, which was up from $2.9 billion in the first quarter. The company noted, however, that while prices for oil and gas had both increased during the period, so had lease operating expenses.

Warren Buffett's Berkshire Hathaway has recently been raising its stake in Oxy, reaching nearly 20 percent in total, sparking rumors that it may be eyeing an acquisition.

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • Mamdouh Salameh on August 03 2022 said:
    Blame it on a declining or virtually stagnant US shale oil production. Occidental is one of the largest exporters of shale oil. But with stagnation in shale oil production, its shale oil exports could have declined, hence the lower Q2 profit.

    Dr Mamdouh G Salameh
    International Oil Economist
    Global Energy Expert
  • George Doolittle on August 03 2022 said:
    *"worst run oil Company in the USA"* is apparently only news to Warren Buffet et al. Anyhow did at least clear a profit but revenue numbers in the USA energy patch look set to truly be in for an epic plunge for the coming months as there is both a substitution effect going on with pure BEV but also just as clear gale force economic headwinds at the moment as well.

    Still outside of the Oxy not this Industry's first rodeo would be an understatement as well as with all the others who were brought to the *BRINK* by crazy Fauci and The Lockdowns. Now the massive spending bender from all of that heedless consumption is quite awesomely and terrifyingly so coming due.

    Long US Treasuries
    Strong buy

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News