Occidental beats profit estimates on higher oil prices
HOUSTON, May 7 (Reuters) - Occidental Petroleum on Tuesday reported profit that beat analysts' first-quarter consensus estimate and forecast second quarter oil and gas production would climb 7%.
Profit fell to $604 million, or 63 cents a share, from $1.07 billion, or $1.09 a share, as its midstream business fell into the red, operating profit in chemicals fell 45% and the oil business slumped 20%.
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However, adjusted profit of 63 cents per share for the quarter ended March 31, beat analysts' average estimate of 60 cents per share, according to LSEG data.
The company forecast second-quarter output would rise to between 1,232-1,272 thousand barrels of oil and gas per day, but it forecast wider losses in its midstream business. Second quarter output at the midpoint of its forecast would be 7% higher.
Output in the Permian basin is forecast to rise about 3% overall, it projected. The forecast excludes its $12 billion acquisition of Permian shale oil producer CrownRock. A regulatory review has delayed closing to the second half of the year.
Occidental's first quarter oil and gas production declined on a year-over-year basis as previously disclosed hits from winter weather and Gulf of Mexico outages offset a slight gain in average sales price for its crude oil.
Occidental pumped 1.17 million barrels of oil and gas per day in the quarter, down from 1.22 million a year ago, the company said. Output was in line with the company's prior guidance.
Operating profit from oil and gas was $1.28 billion down from $1.614 billion a year ago. The midstream unit posted a loss of $64 million compared with profit of $36 million a year ago. Chemicals earned $260 million, down from $472 million a year ago.
Quarterly average price collected for its oil rose to $76.04 per barrel, from $74.22 per barrel a year earlier.
Shares trading down 42 cents in late trading after closing at $65.07.
(Reporting by Tanay Dhumal in Bengaluru and Gary McWilliams in Houston, Editing by Pooja Desai, Stephen Coates and David Gregorio)