Occidental Petroleum Corporation (OXY) posted better-than-expected numbers for the first quarter driven by higher production volumes. Net income from continuing operations was $1.32 per share, below the Zacks Consensus Estimate of $1.35 but substantially higher than last year’s net income of 45 cents.
Daily oil and gas sales volumes increased 1.8%, averaging 726,000 barrels of oil equivalent (BOE) during the reported quarter, compared with 713,000 BOE sold in the first quarter of 2009. In the first quarter 2010, total production was 743,000 BOE per day, a 4.5% increase from the first quarter of 2009 despite losing 38,000 BOE per day from the effect of production sharing and similar contracts. Volumes increased in the Middle East/North Africa and in California and were partially offset by decreases in Latin America.
Revenue increased 55% year over year to $4.8 billion in the first quarter. Revenue in the quarter increased over last year due to increased production and higher realized crude oil prices, partially offset by lower natural gas prices.
Occidental’s average realized crude oil prices increased 83% to $71.88 per barrel, while natural gas prices in the quarter decreased 37% to $3.54 per MCF.
The company generated cash flow from operating activities of $2.2 billion in the quarter. Free cash flow after capital spending and dividends was $1.1 billion. Capital spending for the quarter was $848 million compared to $1.1 billion last year.
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