U.S. oil and gas producers Occidental Petroleum Corp. and Devon Energy Corp. blew past Wall Street’s profit expectations on Aug. 3, as easing travel curbs and rising vaccinations boosted fuel demand and crude prices.
Shares of Occidental rose nearly 2% to $26.95 in extended trade, while Devon climbed 1.9% to $26.70.
After a crushing 2020, oil prices have rebounded to multi-year highs and are now trading at over $70/bbl, thanks to output curbs by the OPEC+ and a pick-up in economic activity.
Devon also announced a fixed-plus-variable dividend of 49 cents per share, 44% higher than last quarter’s payout, underscoring the energy industry’s focus on shareholder returns over spending to expand production.
Peers Diamondback Energy Inc. increased its annual dividend by 12.5% to $1.80 per share and Pioneer Natural Resources Co. declared an inaugural variable dividend of $1.51 per share on Aug. 2.
Occidental said its total production from continuing operations rose to 1.2 million boe/d, 7.7% higher sequentially.
The company’s average price for worldwide crude oil rose to $60.05/bbl from $55.65/bbl in the prior quarter.
The oil and gas producer’s adjusted profit attributable to common stockholders stood at $311 million, or 32 cents per share, for the three months ended June 30. Analysts had estimated 3 cents per share, according to Refinitiv IBES.
Devon posted core earnings of 60 cents per share, beating an estimate of 52 cents per share.
2022-06-30 - Ranger Oil added three “bolt-on” acquisitions in the Eagle Ford Shale, bringing the total of all-cash transactions signed in the second quarter to six worth a combined $110 million.
2022-05-18 - National Fuel touted the environmental benefits of the sale by its E&P segment Seneca Resources, including a 55% reduction in CO₂ equivalent emissions.
2022-06-28 - The $627 million deal adds 86 net locations in the Permian Basin and boosts Earthstone Energy’s production by an estimated 26%.
2022-05-04 - Reaching decarbonization goals involves internal discussions over the best technologies to implement for projects that, offshore, may not see first oil for five years, says Petrobras’ João Henrique Rittershaussen during an OTC panel discussion.
2022-04-19 - “We are convinced it’s better to produce gas in the North Sea than buying it from Vladimir Putin,” Danish Prime Minister Mette Frederiksen told reporters during a briefing.