Despite outperforming Q2 adjusted earnings and revenues expectations, benefiting from higher crude prices, and resuming a stock repurchase program, Occidental Petroleum (NYSE:OXY) fell -1.2% post-market on Tuesday.
Occidental (OXY) reported that it has paid down $4.8 billion in debt during the quarter and bought back $1.1 billion in shares as of August 1, paving the way for the start of a $3 billion buyback program.
The company’s Q2 net earnings decreased from Q1, when they were $4.7B in profits, or $4.65/share, to Q2, when they were $3.6B, or $3.47/share, from a loss of $97M, or $0.10/share.
In contrast to a worldwide total production reduction of 6.3 percent to 1.14M boe/day, including a 4.3 percent decline in U.S. output to 919K boe/day, Q2 net sales increased by 79 percent year over year to $10.68B from $5.96B.
Free cash flow before working capital reached a quarterly high of $4.2 billion in Q2; capital expenditures rose by 39% to $972 million.
The realized global oil price for Occidental (OXY) in the second quarter increased from $64.18 per barrel to $107.72 per barrel. In contrast, the realized global NGL price increased from $25.06 per barrel to $42.04 per barrel. The realized domestic natural gas price increased from $2.59 to $6.25 per million cubic feet.
“Our ongoing efforts to improve the balance sheet remain in place, but we are pleased that our deleveraging process has reached a stage where our focus can expand to additional cash flow priorities,” said President and CEO Vicki Hollub.
The stock price return for Occidental Petroleum (OXY) indicates a YTD increase of 109% and an annual gain of 152%.
Featured Image: Megapixl © Timonschneider
