Occidental misses first-quarter earnings estimates after Anadarko deal

HOUSTON (Reuters) - Occidental Petroleum Corp on Monday missed earnings estimates in its first results after closing its $38 billion (£29.46 billion) purchase of rival Anadarko Petroleum, and said it would slash spending on big projects by 40% next year. Occidental, which is battling pressure from activist investor Carl Icahn to accelerate asset sales to pay off debt, reported a third-quarter net loss of $912 million (£706.98 million) after a year-ago profit of $1.87 billion.

Reuters November 05, 2019 05:06:34 IST
Occidental misses first-quarter earnings estimates after Anadarko deal

Occidental misses firstquarter earnings estimates after Anadarko deal

HOUSTON (Reuters) - Occidental Petroleum Corp on Monday missed earnings estimates in its first results after closing its $38 billion (£29.46 billion) purchase of rival Anadarko Petroleum, and said it would slash spending on big projects by 40% next year.

Occidental, which is battling pressure from activist investor Carl Icahn to accelerate asset sales to pay off debt, reported a third-quarter net loss of $912 million (£706.98 million) after a year-ago profit of $1.87 billion. The loss included nearly $1.3 billion in pretax acquisition costs and impairment charges.

"We remain committed to the strategy we laid out to our investors, which focuses on deleveraging and returning excess free cash flow to shareholders," Chief Executive Vicki Hollub said in a statement.

Its spending on new projects next year will fall to $5.3 billion to $5.5 billion, down from a $9 billion budget this year. In the Permian Basin, the top U.S. shale field, spending will drop by half to $2.2 billion, and by a third in Colorado's shale fields.

The company is expected to hold a briefing on Tuesday to discuss its results.

Occidental topped its production forecast, delivering 1.16 million barrels of oil and gas. However, its crude sold for $56.26 a barrel on average, down more than $6 a barrel a year ago.

Profits in its Oxychem chemicals business and midstream and marketing unit both fell sharply. Oxychem pretax income fell 36% to $207 million from the year-ago quarter. Midstream and marketing posted pretax profits of $266 million, down from $1.7 billion a year ago, which was boosted by an asset sale.

Earnings from Occidental's holdings in pipeline operator Western Midstream Partners was $134 million.

The Houston-based company's adjusted earnings fell to $93 million, or 11 cents per share, from $1.36 billion, or $1.77 per share, a year earlier. Analysts were expecting earnings of 37 cents a share by the same measure, according to Refinitiv. (https://bit.ly/2oM6RUh)

(Reporting by Arunima Kumar in Bengaluru and Jennifer Hiller in Houston; Editing by Sriraj Kalluvila and Richard Chang)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

NYSE to delist three Chinese telecoms in dizzying about-face
Business

NYSE to delist three Chinese telecoms in dizzying about-face

By John McCrank and Anirban Sen (Reuters) -The New York Stock Exchange said on Wednesday it will delist three Chinese telecom companies, confirming its latest reversal on the matter a day after U.S. Treasury Secretary Steve Mnuchin told the NYSE chief he disagreed with an earlier decision to reverse the delistings

Oil and gas dealmaking peaks in Q4 as pandemic spurs consolidation - Enverus
Business

Oil and gas dealmaking peaks in Q4 as pandemic spurs consolidation - Enverus

(Reuters) - Deal making among oil and gas producers was at its highest for the year in the fourth quarter of 2020 as the pandemic-driven fallout in commodity prices spurred a wave of consolidation between explorers looking to scale up and drive down costs, a report from analytics firm Enverus said. Oil and gas producers made deals worth $27.1 billion in the quarter, up from $21 billion in the third, helped by three multi-billion dollar acquisitions in the prolific Permian basin of West Texas and New Mexico. ConocoPhillips acquired Concho Resources for $13.3 billion, the biggest pure shale acquisition by any company since 2011, topping the list.

Markets shift to price in chance of Democratic Senate wins
Business

Markets shift to price in chance of Democratic Senate wins

By Ritvik Carvalho, Wayne Cole and David Randall NEW YORK/LONDON/SYDNEY (Reuters) - The growing chances of Democratic wins in two pivotal U.S. Senate contests triggered financial market moves Wednesday that mirror hopes of more COVID-19-related stimulus and increased regulatory scrutiny of tech companies