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 $1.18 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 $1.13 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 $83.64 per barrel from a year earlier, but up 10% from the second quarter.
It bought back $342 million of Berkshire Hathaway's (BRKa.N) preferred shares, bringing redemptions this year to 15% of the initial $10 billion investment by Warren Buffett's firm that was used by Occidental to fund its acquisition of Anadarko Petroleum in 2019.
We remind, Occidental and ADNOC announced that they will evaluate investment opportunities in Direct Air Capture (DAC) facilities and carbon dioxide (CO2) sequestration hubs in the United States and the United Arab Emirates (UAE) as a pathway toward the development of carbon management platforms to accelerate the net-zero goals of both companies.