Occidental's Strong Q2 Performance Driven by CrownRock Acquisition

Occidental Petroleum (OXY) exceeded Wall Street's second-quarter profit estimates, buoyed by increased oil production and rising crude prices. The Houston-based company reported its first results since finalizing the $12 billion acquisition of CrownRock last week, highlighting a worldwide realized crude oil price of $79.89 per barrel, up from $73.59 a year earlier. The company’s shares climbed 1.1% in after-hours trading following the announcement. Occidental's quarterly production reached 1.26 million barrels of oil equivalent per day (boepd), surpassing the 1.22 million boepd from the previous year and beating analysts' forecast of 1.24 million boepd. The company posted an adjusted profit of $1.03 per share for the quarter ended June 30, well above the average analyst estimate of 77 cents per share, according to LSEG data. Market Overview:

• Occidental beats Q2 profit estimates.
• Higher oil production and crude prices drive performance.
• Shares rise 1.1% in after-hours trading.

Key Points:

• Quarterly production at 1.26 million boepd, surpassing estimates.
• Adjusted profit of $1.03 per share, beating 77-cent estimate.
• CrownRock acquisition boosts long-term debt to $28 billion.

Looking Ahead:

• Updated production target of 1.315 million boepd for the year.
• Third-quarter production expected to rise to 1.390 million boepd.
• Plan to repay $4.5 billion in near-term debt by August 2025.

Occidental has adjusted its annual production target to 1.315 million barrels of oil and gas per day, up from 1.250 million boepd, to integrate CrownRock's assets. The company forecasts third-quarter production to increase by about 140,000 boepd to 1.390 million boepd. Despite the CrownRock acquisition pushing long-term debt to approximately $28 billion, Occidental plans to use cash generated from the acquisition and up to $6 billion in asset sales by 2026 to reduce this debt. It also reaffirmed its commitment to repay $4.5 billion in near-term debt by August 2025.