Page 6 - NorthAmOil Week 31 2022

NorthAmOil INVESTMENT NorthAmOil

At 147,000 boepd,
Occidental’s Gulf
of Mexico output
exceeded the high end
of guidance.

Occidental to share the wealth

rather than hike output

US US major Occidental Petroleum posted results quarter to $3.2bn in the second.
this week showing that it closed out the first half A press release to accompany the results pro-
of the year with continued strong performance. vided more detail, showing that pre-tax income
However, it intends to use the proceeds to pay off for oil and gas operations rose from $2.9bn
debt and increase cash distribution to sharehold- during the first quarter to $4.1bn in the second
ers rather than upstream expansion, according quarter “due to higher crude oil and domestic
to Occidental’s CEO, Vicki Hollub. natural gas prices and higher crude oil and NGL
Meanwhile, it achieved first oil at its Horn volumes, partially offset by higher lease operat-
Mountain West oilfield in the Gulf of Mexico, ing expenses.”
which was tied back to the Horn Mountain spar The company’s total average second-quarter
via a 3.5-mile (5.6-km) dual flow line. Hollub production was “within the mid-point of guid-
said during an earnings call: “The project came ance” at 1.147mn barrels of oil equivalent per day
in on budget and three months ahead of sched- (boepd). Of this, Occidental’s “Permian, Rock-
ule,” adding that Horn Mountain West should ies and International [assets] came within guid-
eventually add around 30,000 barrels per day ance, with average production of 493,000 boepd,
(bpd) of oil production. 279,000 boepd and 228,000 boepd respectively.”
Hollub said: “We don’t feel the need to grow At 147,000 boepd, its Gulf of Mexico output
production until we get beyond that point. exceeded the high end of guidance.
Because we feel like one of the best values right Following issues with third-party processing
now is investment in our own stock.” facilities and the transfer of assets to Colombia’s
Occidental posted a net income attrib- Ecopetrol, Permian guidance for the year has
utable to common stockholders of $3.6bn, been reduced from 532,000 boepd to 521,000
down from $4.7bn in the first quarter. How- boepd. However, full-year guidance for total
ever, adjusted net income attributable to company production was kept at just over 1.5mn
common stockholders went in the opposite boepd as expanded output from the Rockies and
direction, growing from $2.12bn in the first the Gulf offset the Permian drop.™

P6 www. NEWSBASE .com Week 31 04•August•2022