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.
Recommended Reading
US Drillers Leave Oil, Gas Rigs Unchanged: Baker Hughes
2023-01-27 - The U.S. oil and gas rig count remains steady at 771 in the week ending Jan. 27, according to Baker Hughes.
OPEC Oil Output Drops in November After Cut Pledged: Survey
2022-12-01 - OPEC pumped 710,000 bbl/d of oil less in November than October due to an output cut aimed at fighting recession concerns.
Exxon Mobil to Exit Equatorial Guinea Amid Wider Africa Crude Phaseout
2022-11-29 - Exxon Mobil’s oil output in Equatorial Guinea, a member of OPEC, peaked at more than 300,000 bbl/d eight years ago and has been declining since.
Norway’s Oil, Gas Output Lags Forecast
2022-11-23 - Norway’s crude oil and gas output rose in October from September but lagged official forecasts, preliminary data from the Norwegian Petroleum Directorate (NPD) showed on Nov. 22.
US Oil Output Climbs to Highest Since March 2020: EIA
2022-11-30 - Gross natural gas production in the U.S. Lower 48 states also rose in September to a record 111.2 Bcf/d. That topped the prior all-time high of 110.4 Bcf/d in August.