Occidental Petroleum Corp. (NYSE: OXY) on Feb. 12 reported a quarterly profit that beat analysts' estimates, helped by a surge in Permian basin production and higher realized prices for its crude.
Production from its Permian resources unit rose 57% to 250,000 barrels of oil equivalent per day (boe/d) in the fourth quarter, boosted by its investments in the basin.
A recovery in global oil prices since the end of 2016 led to a resurgence in U.S. shale activity centered around the Permian Basin of West Texas and New Mexico. The U.S. recently edged past Saudi Arabia and Russia, to become the world's top oil producer.
Occidental's average production was up about 13% at 700,000 boe/d. Revenue from its midstream and marketing unit also rose to about $1.3 billion from $410 million a year earlier.
U.S. crude oil prices were 7% higher on average in the fourth quarter, compared with a year earlier.
The company's adjusted profit rose to $922 million, or $1.22 per share, in the fourth quarter ended Dec. 31 from $313 million, or 41 cents per share, a year earlier.
Analysts on average had estimated the company to post a profit of $1.14 per share, according to IBES data from Refinitiv.
Occidental recorded impairment charges on its Qatar assets of $220 million.
The purchases of stakes in four major European oil companies come during a global oil and gas industry downturn, as demand has slumped during the coronavirus outbreak.
As a ONE Future member, EagleClaw Midstream will report the company’s 2019 methane results as part of the gathering and boosting and processing sectors within the coalition.
ProPetro Holding Corp. said on April 9 it will reduce compensation at different levels by up to 20%, the latest oilfield services provider looking to rein in costs to weather a steep drop in oil prices.