Occidental recorded a net loss attributable to common stockholders for second-quarter 2021 of $97 million, and adjusted income attributable to common stockholders of $311 million, compared to a net loss attributable to common stockholders for the prior quarter of $346 million, and an adjusted loss attributable to common stockholders of $136 million (OGJ Online, May 10, 2021).
Second quarter after-tax items affecting comparability of $389 million included $426 million of net derivative mark-to-market losses, partially offset by a state tax rate revaluation of $55 million.
Oil and gas pre-tax income on continuing operations for second-quarter 2021 was $631 million, compared to a pre-tax loss of $62 million in the prior quarter. The second quarter results included pretax charges of $161 million, primarily related to derivative mark-to-market losses. Excluding items affecting comparability, second-quarter 2021 oil and gas results improved over the prior quarter due to higher crude oil prices, higher sales volumes across all products and lower operating expenses, partially offset by higher exploration expense and transportation costs.
Total average global production from continuing operations of 1.203 MMboe/d for the quarter exceeded the midpoint of guidance by 48,000 boe/d, with Permian, Rockies, and Gulf of Mexico production of 504,000 boe/d, 308,000 boe/d, and 149,000 boe/d, respectively. International average daily production volumes were 242,000 boe/d.
OxyChem
Chemical pre-tax income of $312 million for second-quarter 2021 exceeded guidance by $12 million. Compared to prior quarter pre-tax income of $251 million, the increase in second quarter of 2021 income was driven primarily by improved pricing and sales volumes across most product lines, along with favorable ethylene and energy costs.
Midstream and marketing
Midstream and marketing's second quarter pre-tax income, excluding WES equity income, exceeded guidance. WES equity income for the second quarter was $115 million. Midstream and marketing pre-tax loss for second-quarter 2021 was $30 million, compared to pre-tax income of $282 million in the prior quarter. Second quarter loss included net derivative mark-to-market losses of $180 million along with a $22 million settlement gain. Excluding items affecting comparability, second-quarter 2021 midstream and marketing income decreased compared to the prior quarter, primarily due to the timing impact of crude export sales in the marketing business and lower margins on waterborne sales as well as the marketing business's ability to optimize long-haul gas transportation in the Rockies in first-quarter 2021, partially offset by higher Dolphin Pipeline income as planned maintenance was completed in the first quarter and higher sulfur prices at Al Hosn Gas.
Guidance
The company anticipates total third-quarter 2021 production of 1.13-1.16 MMboe/d. Permian production is expected to be 484,000-494,000 boe/d; Rockies and other production of 278,000-284,000 boe/d; Gulf of Mexico production of 128,000-136,000 boe/d; and international production of 240,000-246,000 boe/d.
For fiscal year 2021, total company production of 1.15 MMboe/d (oil 53.4%, gas 26.0%) is expected with the Permian basin contributing 483,000 boe/d, Rockies and other adding 291,000 boe/d, Gulf of Mexico adding 142,000 boe/d, and international contributing 234,000 boe/d.
