American exploration company Occidental Petroleum Corp reported solid Q3 numbers with adjusted income bouncing back in the green at $836mn vs. a loss of $788mn in Q3 2020. The adjusted earnings of 87 cents per share also beat consensus estimates of 66 cents per share. Oxy’s revenues more than doubled to $6.8bn beating estimates of $6.5bn with all three segments – Oil & Gas, Chemical and Midstream & Marketing reporting a 65.8%, 49% and 92.8% YoY growth in revenues. CEO Vicki Hollub said, “[Oxy has] generated record free cash flow before working capital in each quarter this year, allowing us to reduce debt and strengthen our balance sheet.” Free cash flow ex working capital came in at $2.3bn, the highest level this century as per Oxy. The company also recorded a $5.1bn improvement in its balance sheet with long-term debt repayments of $4.1bn and the Ghana divestiture worth $750mn. Oxy ended the quarter with an unrestricted cash balance of $2.1bn.
Oxy’s 6.125% 2031s traded 0.95 points higher to 121.07 yielding 3.3% currently.
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