According to CBN, USA oil and gas company Occidental Petroleum (OXY.US) reported third-quarter profits exceeding Wall Street expectations. However, due to asset sales and a decline in chemical business, the company's total revenue declined by 14%. Adjusted profit for Q3, due to weakening oil and gas prices, was $0.977 billion, or $1 per share, lower than the $1.13 billion, or $1.18 per share, in the same period last year. Analysts previously estimated earnings per share to be $0.74. The oil company reported third-quarter revenue grew 0.2% year-on-year to $7.17 billion, slightly higher than the expected $7.12 billion.

Occidental Petroleum's quarterly profit includes one-time asset sale losses and gains from stock sales and derivatives. Due to losses from asset sales, the company's operating profit from oil and gas production decreased by 25% to $1.2 billion. The company incurred a loss of $0.572 billion from sales. In July this year, the company sold assets for a total of $0.97 billion to Permian Resources (PR.US) and an undisclosed buyer. Strong operational performance led to operational cash flow reaching $3.8 billion.

One factor leading to the decrease in its revenue year-on-year is the 6% drop in the average crude oil price to $75.33 per barrel, while domestic natural gas prices fell by 26% to $0.40 per thousand cubic feet. These declines reflect broader market trends affecting global energy prices.

The proceeds from this sale helped reduce the heavy debt burden of acquiring shale oil and gas producer CrownRock for $12 billion. Long-term debt at the end of the third quarter was $25.46 billion, reduced by $4 billion in debt through cash and asset sales. Repaying $4 billion in debt means that nearly 90% of Occidental Petroleum's short-term debt reduction target has been achieved.

The chemical business operating profit of the company decreased from $0.373 billion a year ago to $0.304 billion. The downstream business benefited from derivatives and gained $0.49 billion through the sale of stock in pipeline operator Western Midstream Partners (WES.US).

Due to the acquisition of CrownRock, Occidental Petroleum's oil production increased by 15.7% to reach 1.4 million barrels per day. The company states that the full-year production from the expanded Permian oil field will reach 0.661 million barrels per day, higher than the 0.588 million barrels per day a year ago.

It is worth noting that the production in the Permian Basin exceeded the expected 0.03 million barrels of oil equivalent per day. However, in the Gulf of Mexico, production dropped significantly due to weather-related interruptions. These differences highlight the importance of geographical diversity.

Rapidly increasing production may threaten efforts to curb global warming by the middle of this century. The company's total production is 1.412 million barrels of oil equivalent per day, which is 0.22 million barrels of oil equivalent higher than the midpoint of the guidance.

Occidental Petroleum outlined several strategic priorities, emphasizing its leadership in sustainability, particularly 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 wind power goals.

Occidental Petroleum remains vigilant about fluctuations in commodity prices, posing risks to the stability of its revenue. Careful consideration is required for the integration of CrownRock and other assets. Management is preparing for these challenges, maintaining a cautious but optimistic stance on capital expenditures and integration risks. Therefore, Occidental Petroleum intends to maximize its production capacity while enhancing the efficiency of its core assets.