Occidental Petroleum has announced earnings from continuing operations of $1.8 billion for the third quarter of 2011, compared with $1.2 billion for the third quarter of 2010.
In announcing the results, Stephen I. Chazen, President and Chief Executive Officer, said, “The third quarter 2011 income of $1.8 billion was 48 percent higher than the same period of 2010. The third quarter 2011 domestic production was 436,000 BOE per day, the highest in Occidental’s history, and total sales were 743,000 BOE per day.
“We continue to generate strong financial results with cash flow from operations of $8.6 billion for the first nine months of 2011 and annualized ROE of 20 percent.”
Oil and gas segment earnings were $2.6 billion for the third quarter of 2011, compared with $1.8 billion for the same period in 2010. The increase in the third quarter of 2011 earnings was due to higher volumes and liquids prices.
For the third quarter of 2011, daily oil and gas production volumes averaged 739,000 barrels of oil equivalent (BOE), compared with 706,000 BOE in the third quarter of 2010.
As a result of higher year-over-year average oil prices and other factors affecting production sharing and similar contracts, production was reduced in the Middle East/North Africa and Colombia by 13,000 BOE per day, with another 1,000 BOE per day reduction at THUMS in Long Beach.
The third quarter 2011 production volume increase was a result of 56,000 BOE per day higher domestic volumes, partially offset by lower volumes in the Middle East/North Africa and Colombia.
The Middle East/North Africa was lower primarily due to the lack of production in Libya and price impacts on production sharing contracts, partially offset by higher production from our traditional areas in Oman and Mukhaizna and Iraq production that came on line in 2011. Colombia production was lower due to pipeline interruptions caused by insurgent activity.
Daily sales volumes increased from 713,000 BOE per day in the third quarter of 2010 to 743,000 BOE per day in the third quarter of 2011. The 2011 sales volumes were higher than the production volumes due to the timing of liftings.
Oxy’s realized price for worldwide crude oil was $97.24 per barrel for the third quarter of 2011, compared with $72.31 per barrel for the third quarter of 2010. The third quarter of 2011 realized oil price represents 108 percent of the average WTI and 87 percent of the average Brent price for the quarter.
Oil and gas segment earnings were $7.7 billion for the nine months of 2011, compared with $5.5 billion for the same period of 2010. The $2.2 billion increase in the 2011 results reflected higher crude oil and NGL prices and sales volumes, partially offset by higher operating costs and DD&A rates.
Financial highlights:
• Q3 2011 earnings from continuing operations of $1.8 billion ($2.18 per diluted share)
• Q3 2011 daily domestic oil and gas production of 436,000 BOE, highest in Company’s history
• Q3 2011 total daily oil and gas sales of 743,000 BOE
