MRC -- Occidental Petroleum beat analysts' third-quarter profit estimates on strong U.S. oil production, but its results were well below a year ago due to lower energy prices and weaker chemical and pipeline results, said the company.
The oil and gas company reported a USD1.18 a share profit compared to average Wall Street analyst forecasts for an 84 cent a share profit, according to LSEG. Adjusted earnings fell by more than half to USD1.13 billion compared to the same quarter last year.
U.S. oil producers are reporting weaker third-quarter profits on a drop in oil and gas prices from a year ago. But earnings are up compared to the second quarter on an improvement in prices.
Occidental sold its oil for an average $80.70 per barrel in the third quarter, down from USD83.64 per barrel from a year earlier, but up 10% from the second quarter.
It bought back USD342 million of Berkshire Hathaway's (BRKa.N) preferred shares, bringing redemptions this year to 15% of the initial USD10 billion investment by Warren Buffett's firm that was used by Occidental to fund its acquisition of Anadarko Petroleum in 2019.
We remind, Occidental Petroleum’s carbon capture, utilisation and sequestration (CCUS) subsidiary, 1PointFive, has been selected to receive a grant from the US Department of Energy (DOE) for the development of its South Texas Direct Air Capture (DAC) Hub in Kleberg county, south of Corpus Christi. The hub is expected to include the world’s first DAC plant designed to remove up to 1m tonnes/year of carbon dioxide (CO2). The funding by the DOE's Office of Clean Energy Demonstrations will support the development of the DAC hub, Occidental said on Friday without disclosing financial details.