Occidental Petroleum Corp. (OXY) Wednesday reported a higher fourth-quarter profit, reflecting improved oil prices and increased domestic production. Both earnings per share and revenues surpassed analysts' expectations.
In the fourth quarter, the Los Angeles, California-based company's net income increased to $1.63 billion or $2.01 per share from $1.21 billion or $1.49 per share in the previous year.
Core income was $1.64 billion or $2.02 per share, up from $1.29 billion or $1.58 per share in the prior-year quarter. On average, 20 analysts polled by Thomson Reuters expected the company to earn $1.95 per share for the quarter. Analysts' estimates typically exclude special items.
Net Sales for the quarter grew to $6.03 billion from $5.06 billion in the same quarter last year, exceeding analysts' estimate of $5.77 billion.
Oil and gas segment's earnings were $2.54 billion, up from $1.67 billion reported last year. The company attributed the increase in earnings to higher liquids volumes and prices.
Domestic oil and gas production for the quarter was 449,000 barrels of oil equivalent per day, or BOE, the highest in Occidental's history, breaking the previous record achieved last quarter, the company said. The domestic increase was from South Texas, the Williston Basin and California.
Total quarterly daily oil and gas production volumes increased about 5 percent to 748,000 BOE per day. Daily sales volumes were 749,000 BOE per day, higher than 699,000 BOE per day a year earlier.
The company's realized price for worldwide crude oil was $99.62 per barrel, compared to $79.96 per barrel in the prior-year period. NGL prices increased to $55.25 per barrel in the quarter from $49.17 per barrel in the same period last year.
For the full year, the company posted net income of $6.77 billion or $8.32 per share, higher than $4.53 billion or $5.56 per share in the prior year. Annual revenues increased to $23.94 billion from $19.04 billion in the preceding year.
Stephen Chazen, president and chief executive officer of the company said, "The 2011 net income of $6.8 billion was 49-percent higher than 2010. For the year, we continued to generate strong financial results with cash flow from operations of $12.3 billion and ROE of 19 percent."
The company also increased its annual dividend by 21 percent to $1.84 per share.
OXY closed Tuesday's regular trading at $100.92 on the NYSE.
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