The following is a summary of the Occidental Petroleum Corporation (OXY) Q1 2024 Earnings Call Transcript:
Financial Performance:
Occidental Petroleum reported an operational cash flow of over $2.4 billion for Q1 2024.
The company ended the quarter with nearly $1.3 billion in unrestricted cash.
Adjusted profit for the company was reported at $0.63 per diluted share and a reported profit of $0.75 per diluted share.
Despite third-party outage impacts to portions of production in the Gulf of Mexico, it delivered over $700 million of free cash flow before working capital.
The company raised mid-stream their fully guidance range by $110 million through their midstream business.
Business Progress:
Occidental showed a strong operational performance with robust production from their oil and gas business and better than expected levels in the Permian Basin and the Rockies.
The company is making progress on secondary benches, raising financial returns for shareholders by extending tier one locations.
Improvements in the chemical business were driven by increased demand for products including PVC and Vinyl Chloride, alongside lower ethylene costs.
Occidental is on track with the divestiture program discussed in the CrownRock acquisition, aiming to reduce debt to $15 billion or below, and later resume the share repurchase program.
Pursuing their goal of net-zero emissions, they are advancing emissions reduction initiatives, evident from the deployment of a fully electric well service rig.
Construction of their first direct air capture plant, STRATOS, is progressing as per schedule.
Through strategic divestments, efforts to optimize operations in the Permian, and leveraging infrastructure for Bone Springs development, the company is working towards improving its financial health and business prospects.
More details: Occidental Petroleum IR
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