SEATTLE (Oil Monster): Occidental Petroleum beat Wall Street estimates for second-quarter profit on Wednesday, as higher production countered lower crude oil prices.
The company's quarterly average global production was at 1.4 million barrels of oil equivalent per day (MMboepd), up about 11% from a year earlier.
Last week, oil majors Exxon Mobil and Chevron reported a quarterly profit beat as higher production helped them offset lower crude prices.
Occidental also disclosed $950 million of additional divestitures since the start of the second quarter, of which $370 million already closed.
The company said it had agreed in July to sell an entity that owns certain gas gathering assets in the Midland Basin to a unit of Enterprise Products Partners for $580 million, as a part of the overall divestments.
The oil and gas firm said it had repaid $3 billion of debt year-to-date.
The company's shares were up 1.1% in extended trading on Wednesday.
Occidental's earnings were also helped by a rise in natural gas prices, which more than doubled to $1.33 per thousand cubic foot (Mcf) from a year earlier.
However, the company said quarterly average realized price for oil was at $63.76 per barrel, down about 20% from a year earlier.
Average Brent crude futures fell about 20% to about $70 per barrel in the second quarter from a year earlier, as U.S. President Donald Trump's tariffs created global uncertainty and weighed on oil demand.
The Houston, Texas-based company also reduced the mid-point of current year capex forecast by $100 million and international operating costs by $50 million.
The company reported an adjusted profit of 39 cents per share for the quarter ended June 30, compared with analysts' average estimate of 29 cents, according to data compiled by LSEG.
Courtesy: www.reuters.com
