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.
In its most recent partnership with EnCap, the Sabalo management team built a position in the Midland Basin of over 21,000 net acres, which it sold to Laredo Petroleum for $715 million in July.
Providence Resources Plc, the Irish-based energy company, said Dec. 6 that Tony O’Reilly has stepped down from the position of CEO and has resigned from the Board (and all subsidiaries) with immediate effect.
Esperanza Capital Partners was founded by oil industry veterans David M. Dunwoody Jr. and William H. Goodwin alongside an investment from Cockrell Interests to target the acquisition of energy and infrastructure assets in the U.S. Gulf of Mexico.