American exploration company Occidental Petroleum Corp (Oxy) reported a consolidated net profit of $3.8bn in Q2 vs. $103mn in the last year driven by higher crude oil and domestic natural gas prices and increased crude oil and Natural Gas Liquids (NGL) volumes. Total revenues rose 79% YoY to $10.6bn. By segment, revenues for Oil & gas increased 71% YoY to $7.7bn, Oxychem rose 60.8% YoY to $1.bn and Midstream & Marketing rose ~3x to $1.5bn. Cash flow generation doubled YoY to $4.2bn. Capital spending stood at $972mn, 39% higher YoY. The company repaid $4.8bn of debt which is 19% of the total outstanding. As of June, net long-term debt stood at $21.7bn, down ~$14bn in a year. Oxy, currently rated BB+ by Fitch, has set a goal of regaining an investment-grade credit rating. The company increased its quarterly common dividend to $0.13/share and announced a $3bn buyback of shares for 2022. The company has guided for production of 1,140 – 1,170 Mboed, Oxychem pre-tax income of $200-$300mn, and interest expense of $1.2bn for the full year 2022.
Occidental’s 2.9% 2024 was up 0.56 points to 98.81, yielding 3.51%.