Occidental Petroleum profit boosted by stronger domestic results

|About: Occidental Petroleum Corpor... (OXY)|By:, SA News Editor

Occidental Petroleum (OXY +0.4%) is higher after reporting better than expected earnings for the third straight quarter, helped by higher prices.

OXY said its Q2 crude oil prices rose 3% Y/Y to $100.38/bbl, while U.S. natural gas prices rose by 12% to $4.28/Mcf.

In OXY's oil and gas business, core domestic earnings improved 6.9%, offsetting a 10% decline in its international unit.

Q2 production, excluding the Hugoton Field which was sold in April, avergaed 736K boe/day, down 2.3% Y/Y, stemming from lower international production that primarily resulted from insurgent activities in Colombia, continued field and port strikes in Libya and lower cost recovery barrels in Iraq; U.S. output rose by 13K to 464K boe/day.

Sees Q3 domestic production growth of 15K-17K boe/day, and international growth of ~10K boe/day.

Core earnings surged in the midstream and marketing segment, reflecting improved marketing and trading performance.