OXY(OXY)2024-11-12 21:15Cash 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% decrease compared to the previous quarter[104] - Net income for Q3 2024 decreased compared to Q2 2024 due to lower crude oil prices, higher interest expense, and lower midstream earnings, partially offset by increased sales volumes from the CrownRock Acquisition[108] - Oil and gas segment earnings decreased to $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]