Occidental Petroleum Revenue Increases

By Patrick Thomas

Occidental Petroleum Corp. (OXY) said its profit rose in the second quarter as its revenue grew 9% from a year earlier, beating analysts' expectations.

The Houston-based oil driller reported a profit of $635 million, or 84 cents a share, compared with $631 million, or 84 cents a share, a year ago.

The company reported adjusted earnings of 97 cents a share. Analysts polled by FactSet were expecting earnings of 96 cents a share, or 94 cents a share on an adjusted basis.

Revenue rose to $4.48 billion from $4.09 billion a year earlier. Analysts had expected $4.30 billion of revenue in the quarter.

Oil and gas pre-tax income for the quarter was $726 million, compared with $484 million for the prior quarter.

Occidental also said Wednesday that it entered into a joint venture with Ecopetrol SA (EC) to develop 97,000 acres of Occidental's Midland Basin properties in the Permian Basin.

Ecopetrol will pay $750 million in cash at closing and $750 million of carried capital in exchange for a 49% interest in the new venture. Occidental will own a 51% interest and operate the joint venture.

Occidental said the joint venture allows it to accelerate its development plans in the Midland Basin.

Write to Patrick Thomas at patrick.thomas@wsj.com

(END) Dow Jones Newswires

July 31, 2019 17:31 ET (21:31 GMT)

Occidental Petroleum (NYSE:OXY)
Historical Stock Chart
From Mar 2024 to Apr 2024