Occidental Petroleum reported its strongest quarterly earnings since 2022, beating Wall Street estimates as higher oil prices and increased U.S. production offset declines in the Middle East.
MONTREAL (OilMonster): U.S. shale producer Occidental Petroleum (OXY.N) reported its highest quarterly profit since 2022, surpassing Wall Street expectations on Wednesday, helped by a jump in oil prices and a rise in production.
Benchmark Brent crude prices averaged 19.2% higher at $89.62 per barrel in the quarter from a year earlier as the conflict in the Middle East, now in its sixth month, disrupted energy supplies and shipping through the crucial Strait of Hormuz.
Occidental's realized price for oil produced jumped more than 50% to $96.78 per barrel in the three months ended June 30, from a year earlier.
Average global production rose 2.4% to 1.43 million barrels of oil equivalent per day (mmboepd), driven primarily by strength in the U.S.
However, output from Occidental's international assets, located primarily in Algeria, Oman, Qatar, and the United Arab Emirates, dropped 12% to 205,000 boepd as repeated flare-ups and attacks on energy infrastructure in the Middle East kept a crucial oil-producing region on edge.
Larger U.S. rivals also posted solid second-quarter profits on the surge in oil prices. Chevron (CVX.N) posted its highest profit in six years while ExxonMobil (XOM.N) reported its biggest profit in four years.
Occidental posted an adjusted profit of $2.40 per share for the April–June period, the highest since the third quarter of 2022 and well above expectations of $1.84, according to data compiled by LSEG.
For the current quarter, the company forecast production of 1.4–1.44 mmboepd, with output in the Permian Basin expected to average in the range of 795,000–815,000 boepd.
Occidental also tightened its annual production outlook to 1.42 to 1.45 mmboepd, with international output expected to range between 220,000 and 224,000 boepd. Earlier this year, the company had lowered its production outlook, citing the effect of the Iran war on its operations.
Occidental's international assets accounted for 16.2% of its total output in 2025.
The company now expects capital expenditures of $5.5 billion to $5.9 billion in 2026, compared with its prior projection of $6.3 billion to $6.7 billion.
Shares of Occidental rose 1.6% in extended trading following the results.
Occidental reported adjusted profit of $2.40 per share for the April–June period, above the $1.84 estimate.
The company’s realized oil price jumped more than 50% year over year to $96.78 per barrel.
Global production rose 2.4% to 1.43 million barrels of oil equivalent per day, led by U.S. output.
International production fell 12% as attacks on energy infrastructure disrupted operations in the region.
The company now expects 2026 capex of $5.5–$5.9 billion, down from an earlier $6.3–$6.7 billion range.
Courtesy: www.reuters.com
