Occidental Petroleum Corp. (OXY, Financial) filed Quarterly Report for the period ended 2009-03-31.
Occidental Petroleum Corp. explores for develops produces and markets crude oil and natural gas and manufactures and markets a variety of basic chemicals including chlorine caustic soda and ethylene dichloride as well as specialty chemicals and vinyls including polyvinyl chloride resins and vinyl chloride monomer. Occidental conducts its principal operations through its oil and gas and chemical subsidiaries. Occidental Petroleum Corp. has a market cap of $46.53 billion; its shares were traded at around $57.4 with a P/E ratio of 8 and P/S ratio of 1.9. The dividend yield of Occidental Petroleum Corp. stocks is 2.2%. Occidental Petroleum Corp. had an annual average earning growth of 17% over the past 10 years. GuruFocus rated Occidental Petroleum Corp. the business predictability rank of 2.5-star.
Net income for the three months ended March 31, 2009, included after-tax charges of $21 million for severance, $10 million for railcar leases and $5 million for rig termination costs.
In the first quarter of 2009, the average West Texas Intermediate (WTI) price was $43.08 per barrel and the average New York Mercantile Exchange (NYMEX) price for natural gas was $5.08 per million British Thermal Units (BTUs), compared to $97.90 per barrel and $7.94 per million BTUs, respectively, for the first quarter of 2008. Occidentals realized oil price for the first quarter of 2009 was $39.29 per barrel compared to $86.75 per barrel for the first quarter of 2008. Based on the current levels of production and prices, if domestic natural gas prices vary by $0.50 per million BTUs, it would have an estimated effect on quarterly pre-tax income of approximately $20 million, while a $1.00 per-barrel change in oil prices would have a quarterly pre-tax impact of approximately $36 million. If production levels change, the sensitivity of Occidentals results to oil and gas prices also would change.
Chemical segment earnings for the three months ended March 31, 2009, were $169 million compared with $179 million for the same period of 2008. The first quarter of 2009 results reflect higher caustic soda margins, offset by lower volumes in chlorine, caustic soda and polyvinyl chloride.
During the three months ended March 31, 2009, Occidental recorded pre-tax charges of $32 million for severance and $15 million related to railcar sub-leases to a subsidiary of Lyondell Chemical Company (Lyondell), which are being amended as a result of negotiations in connection with the recently filed bankruptcy reorganization of Lyondell and certain of its affiliates and subsidiaries.
At March 31, 2009, Occidental had approximately $1.1 billion in cash on hand. Available but unused lines of committed bank credit totaled approximately $1.5 billion at March 31, 2009. Income and cash flows are largely dependent on oil and gas prices, which have fallen steeply since mid-2008, and sales volumes. Occidental believes that cash on hand and cash generated from operations will be sufficient to fund its operating needs, planned capital expenditures and dividends. Dolphin Energy is in the process of refinancing its current debt to longer-term debt, which it may complete as early as the second quarter of 2009. In connection with this activity, Occidental agreed it will repay its portion of the Dolphin Energy debt, which is proportionally consolidated on its balance sheet and is approximately $600 million as of March 31, 2009. Occidental may refinance this amount during 2009 by accessing its existing credit facilities o
Read the The complete ReportOXY is in the portfolios of T Boone Pickens of BP Capital, Chris Davis of Davis Selected Advisers, Dodge & Cox, Kenneth Fisher of Fisher Asset Management, LLC, Kenneth Fisher of Fisher Asset Management, LLC, David Dreman of Dreman Value Management, David Tepper of APPALOOSA MANAGEMENT LP, John Keeley of Keeley Fund Management, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.
Occidental Petroleum Corp. explores for develops produces and markets crude oil and natural gas and manufactures and markets a variety of basic chemicals including chlorine caustic soda and ethylene dichloride as well as specialty chemicals and vinyls including polyvinyl chloride resins and vinyl chloride monomer. Occidental conducts its principal operations through its oil and gas and chemical subsidiaries. Occidental Petroleum Corp. has a market cap of $46.53 billion; its shares were traded at around $57.4 with a P/E ratio of 8 and P/S ratio of 1.9. The dividend yield of Occidental Petroleum Corp. stocks is 2.2%. Occidental Petroleum Corp. had an annual average earning growth of 17% over the past 10 years. GuruFocus rated Occidental Petroleum Corp. the business predictability rank of 2.5-star.
Highlight of Business Operations:
Occidental (which means Occidental Petroleum Corporation (OPC) and/or one or more entities in which it owns a majority voting interest) reported net income of $368 million for the first three months of 2009 on net sales of $3.1 billion, compared with net income of $1.8 billion, on net sales of $6.0 billion for the same period of 2008. Diluted earnings per common share (EPS) attributable to common stock were $0.45 and $2.22 for the first three months of 2009 and 2008, respectively.Net income for the three months ended March 31, 2009, included after-tax charges of $21 million for severance, $10 million for railcar leases and $5 million for rig termination costs.
In the first quarter of 2009, the average West Texas Intermediate (WTI) price was $43.08 per barrel and the average New York Mercantile Exchange (NYMEX) price for natural gas was $5.08 per million British Thermal Units (BTUs), compared to $97.90 per barrel and $7.94 per million BTUs, respectively, for the first quarter of 2008. Occidentals realized oil price for the first quarter of 2009 was $39.29 per barrel compared to $86.75 per barrel for the first quarter of 2008. Based on the current levels of production and prices, if domestic natural gas prices vary by $0.50 per million BTUs, it would have an estimated effect on quarterly pre-tax income of approximately $20 million, while a $1.00 per-barrel change in oil prices would have a quarterly pre-tax impact of approximately $36 million. If production levels change, the sensitivity of Occidentals results to oil and gas prices also would change.
Chemical segment earnings for the three months ended March 31, 2009, were $169 million compared with $179 million for the same period of 2008. The first quarter of 2009 results reflect higher caustic soda margins, offset by lower volumes in chlorine, caustic soda and polyvinyl chloride.
During the three months ended March 31, 2009, Occidental recorded pre-tax charges of $32 million for severance and $15 million related to railcar sub-leases to a subsidiary of Lyondell Chemical Company (Lyondell), which are being amended as a result of negotiations in connection with the recently filed bankruptcy reorganization of Lyondell and certain of its affiliates and subsidiaries.
At March 31, 2009, Occidental had approximately $1.1 billion in cash on hand. Available but unused lines of committed bank credit totaled approximately $1.5 billion at March 31, 2009. Income and cash flows are largely dependent on oil and gas prices, which have fallen steeply since mid-2008, and sales volumes. Occidental believes that cash on hand and cash generated from operations will be sufficient to fund its operating needs, planned capital expenditures and dividends. Dolphin Energy is in the process of refinancing its current debt to longer-term debt, which it may complete as early as the second quarter of 2009. In connection with this activity, Occidental agreed it will repay its portion of the Dolphin Energy debt, which is proportionally consolidated on its balance sheet and is approximately $600 million as of March 31, 2009. Occidental may refinance this amount during 2009 by accessing its existing credit facilities o
Read the The complete ReportOXY is in the portfolios of T Boone Pickens of BP Capital, Chris Davis of Davis Selected Advisers, Dodge & Cox, Kenneth Fisher of Fisher Asset Management, LLC, Kenneth Fisher of Fisher Asset Management, LLC, David Dreman of Dreman Value Management, David Tepper of APPALOOSA MANAGEMENT LP, John Keeley of Keeley Fund Management, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.
