Q1 2024 Occidental Petroleum Corp Earnings Call Transcript
Key Points
- Occidental Petroleum Corp (OXY) reported a strong start to 2024 with over $2.4 billion in operating cash flow before working capital, highlighting effective operational execution.
- The company's oil and gas business delivered robust production results, essentially offsetting the impact of a third-party outage in the Eastern Gulf of Mexico.
- Occidental Petroleum Corp (OXY) achieved record gross daily production in Oman North, driven by new well performance and production uptime.
- The Midstream business of Occidental Petroleum Corp (OXY) significantly outperformed the high end of first quarter guidance, driven by gas marketing optimization and capturing value in regional pricing disparities.
- Occidental Petroleum Corp (OXY) is advancing construction of its first direct air capture plant, STRATOS, on schedule, enhancing its low carbon ventures businesses and cash flow resiliency.
- Occidental Petroleum Corp (OXY) faced challenges due to a third-party outage in the Eastern Gulf of Mexico, impacting early 2024 operations.
- Despite strong performance, the company revised full year Gulf of Mexico production guidance downwards due to the extended outage.
- Occidental Petroleum Corp (OXY) is experiencing lower gas prices, which are unfavorable and impact parts of the portfolio despite benefits to OxyChem from reduced energy costs.
- The company noted a negative working capital change, typical for the first quarter, largely due to semiannual interest payments on debt and annual property tax payments.
- Occidental Petroleum Corp (OXY) is undergoing a divestiture program to deleverage, aiming to reduce principal debt to $15 billion or below, indicating current financial pressure.
Good afternoon and welcome to Occidental's First Quarter 2024 Earnings Conference Call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Jordan Tanner, Vice President of Investor Relations. Please go ahead.
Thank you, Drew. Good afternoon, everyone and thank you for participating in Occidental's First Quarter 2024 Earnings Conference Call. On the call with us today are Vicki Hollub, President and Chief Executive Officer; Sunil Mathew, Senior Vice President and Chief Financial Officer; Richard Jackson, President, Operations, U.S. Onshore Resources and Carbon Management and Ken Dillon, Senior Vice President and President, International Oil and Gas Operations.
This afternoon, we will refer to slides available on the Investors section of our website. The presentation includes a cautionary statement on Slide 2 regarding forward-looking statements that will be made on the call this afternoon. We'll also reference a few non-GAAP
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