Oxy reports second-quarter net income of $635 million

Occidental Petroleum Corp. reported net income of $635 million for this year’s second quarter, down from $848 million reported in the same quarter a year ago, yet up from the $631 million reported in this year’s first quarter.

Occidental Petroleum Corp. reported net income of $635 million for this year’s second quarter, down from $848 million reported in the same quarter a year ago, yet up from the $631 million reported in this year’s first quarter. Second-quarter pretax noncore items of $107 million include Anadarko acquisition-related transaction and debt financing fees.

Oil and gas pretax income for the second quarter was $726 million compared with $484 million for the prior quarter, attributed to higher crude oil prices and sales volumes, partially offset by a negative noncash mark-to-market adjustment on carbon dioxide purchase contracts along with lower US gas prices.

Total average production volumes were 741,000 boe/d for the second quarter compared with 719,000 boe/d for the year’s first quarter. Permian Resources average production volumes hit 289,000 boe/d for the second quarter, an increase of 11% from the prior quarter due to improved well performance and development activity. Year-over-year, Permian Resources production for the second quarter increased by 44%.

International average production volumes were 295,000 boe/d for the second quarter compared with 298,000 boe/d for the first quarter. Production in the second quarter was lower due to production-sharing impacts in Oman.

Total cash operating costs of $10.97/boe for the second quarter decreased by 5% compared with the prior quarter. Compared to total year 2018, total cash operating costs decreased by more than 8% due to improved efficiencies in downhole maintenance and lower energy costs.

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