OXY(OXY) - 2024 Q3 - Quarterly Report

Cash Flow and Capital Expenditures - Occidental generated cash flow from continuing operations of $8.2 billion and incurred capital expenditures of$5.2 billion during the first nine months of 2024[96] - Operating cash flow from continuing operations was $8.2 billion for the nine months ended September 30, 2024, down from$9.1 billion in 2023, primarily due to working capital cash uses and lower realized pricing in the chemical segment[128] - Net cash used by investing activities was $12.8 billion for the nine months ended September 30, 2024, compared to$5.0 billion in 2023, including $8.8 billion for the CrownRock Acquisition[129] - Capital expenditures were approximately$5.2 billion for the nine months ended September 30, 2024, up from $4.7 billion in 2023, driven by the construction of the STRATOS DAC facility and increased activities in the domestic oil and gas segment[129] Debt and Financing - Occidental issued$9.7 billion in new debt in July 2024 and assumed $1.2 billion of existing CrownRock debt in August 2024[97] - Occidental repaid$4.0 billion of debt in the three months ended September 30, 2024[97] - Interest and debt expense increased to $848 million in YTD 2024 from$698 million in YTD 2023, due to higher long-term debt for the CrownRock Acquisition[110] - Occidental's net cash provided by financing activities was $5.0 billion for the nine months ended September 30, 2024, including$9.6 billion from debt issuance and $571 million from common stock issuance[130] - Occidental repaid$4.0 billion of debt in the nine months ended September 30, 2024[130] - Occidental has debt maturities of $1.5 billion in 2025,$4.1 billion in 2026, $1.5 billion in 2027, and$17.8 billion thereafter[130] Dividends and Share Repurchases - Occidental declared dividends to common shareholders of $606 million or$0.66 per share during the nine months ended September 30, 2024[99] - Occidental has approximately $1.2 billion remaining under its share repurchase program authorized in 2023[131] Asset Sales and Gains - Occidental sold non-core assets in the Powder River Basin and certain Delaware Basin assets for combined net proceeds of$779 million in Q3 2024[101] - Occidental recognized a pre-tax loss of $479 million on the asset sales in Q3 2024[101] - Occidental sold 19.5 million of its limited partner units in WES for proceeds of$697 million resulting in a pre-tax gain of $489 million in Q3 2024[101] - Gains on sales of assets for YTD 2024 included$779 million from non-core asset sales and a $489 million pre-tax gain from selling 19.5 million WES units[112] Net Income and Earnings - Net income attributable to common stockholders was$964 million for the three months ended September 30, 2024, a 3% decrease compared to the previous quarter[104] - Net income per share attributable to common stockholders was $0.98 for the three months ended September 30, 2024, a 5$1.2 billion in Q3 2024 from $1.6 billion in Q2 2024, primarily due to lower domestic crude oil prices[116] - Oil and gas segment earnings were$4.0 billion for the nine months ended September 30, 2024, compared to $4.7 billion for the same period in 2023, with a slight decrease due to lower domestic gas prices[117] - Chemical segment earnings for the nine months ended September 30, 2024 were$854 million, down from $1.3 billion in 2023, primarily due to lower realized pricing across most product lines[121] - Midstream and marketing segment earnings for the nine months ended September 30, 2024 were$714 million, compared to segment losses of $158 million in 2023, driven by higher gas marketing margin and equity method investment income[124] Sales Volumes and Prices - The average WTI price per barrel for the three months ended September 30, 2024 was$75.09, compared to $80.56 for the three months ended June 30, 2024[94] - Net sales for YTD 2024 decreased to$19.965 billion compared to $21.085 billion in YTD 2023, primarily due to lower chemical and domestic gas prices[111] - Oil and gas segment sales volumes increased to 1,411 Mboe/day in Q3 2024 from 1,260 Mboe/day in Q2 2024, driven by higher U.S. oil and NGL production[114] - Average daily sales volumes increased by 151 Mboe/d in Q3 2024 compared to Q2 2024, driven by the CrownRock Acquisition and production increases in the Permian Basin[116] Segment Performance - Midstream and marketing segment income increased to$709 million in YTD 2024 from a loss of $50 million in YTD 2023, driven by asset sales gains and higher gas marketing margins[106][109] - Depreciation, depletion, and amortization expenses increased to$5.394 billion in YTD 2024 from $5.142 billion in YTD 2023, primarily due to higher Permian Basin sales volumes[110][112] - Income from equity investments and other increased to$709 million in YTD 2024 from $391 million in YTD 2023, driven by asset sales gains and higher WES operating income[110][112] - Chemical segment costs of sales increased to$2.369 billion in YTD 2024 from $2.218 billion in YTD 2023, reflecting higher production costs[110] Acquisition and Related Costs - Acquisition-related costs for YTD 2024 totaled$141 million, primarily related to the CrownRock Acquisition[106] Tax and Liquidity - Worldwide effective tax rate was 28% for the three months ended September 30, 2024, consistent with the same period in 2023[125] - Occidental's sources of liquidity as of September 30, 2024 included $1.8 billion of cash and cash equivalents and$4.15 billion of borrowing capacity under its RCF[127] Environmental and Legal - Occidental's environmental compliance costs have generally increased over time and are expected to rise in the future[132] - Occidental accrues reserves for outstanding lawsuits, claims, and proceedings when probable and reasonably estimable[135]