The Occidental Petroleum Corp.’s fourth quarter was highlighted by the acquisition of the Midland-based CrownRock Inc. for $12 billion and the $1.1-billion purchase of the Carbon Engineering Co. of Squamish, British Columbia, Canada, which President-CEO Vikki Hollub said enhanced her company’s presence in the Permian Basin and furthered its goal of playing a leadership role in the world’s low-carbon future.
“Our teams performed exceptionally well during the fourth quarter of 2023, concluding another year of operational excellence across all three business segments,” Hollub said from Houston. “We are continuing to focus on delivering long-term value for our shareholders through a 22-percent increase in our dividend and strategic transactions to high-grade our domestic portfolio.”
Hollub said the purchases of CrownRock strengthened Oxy’s U.S. onshore portfolio and of Carbon Engineering its low-carbon initiatives.
She said the company had net proved reserves of 4 billion barrels of oil equivalent, operating cash flow of $3.2 billion and cash flow from operations before working capital of $2.5 billion.
Hollub reported pre-tax income of $1.6 billion for the quarter, which was a decrease from the third quarter’s $2 billion attributable to lower domestic crude oil prices and higher lease operating expenses.
Operating in volatile oil and natural gas markets, Hollub said, Oxy’s earnings per share, production volumes and proved reserves were reliable indicators of its performance and growth potential.
She said midstream and marketing pre-tax results for the fourth quarter reflected income of $182 million, compared to a loss of $130 million for the third quarter of 2023.
“Excluding items affecting comparability, the decrease in midstream and marketing pre-tax fourth quarter results, compared to the third quarter, reflected lower crude margins due to the timing impact of crude sales in the marketing business and lower income from the power generation business due to a seasonal pricing impact that was partially offset by higher gas margins,” Hollub said.
