Occidental Misses Fourth-Quarter Profit Estimates on Lower Crude Prices

Reuters2023-02-28

Feb 27 (Reuters) - Occidental Petroleum Corp on Monday reported fourth-quarter profit below Wall Street estimates, as demand for crude and prices came under pressure from concerns over a global economic slowdown.

Prices of global benchmark Brent crude averaged at about $88.63 per barrel in the October-December quarter, about 11% higher compared with the same period a year earlier but 12% lower sequentially.

The company said in a filing it expects its average Permian and Rockies production in the fourth quarter to be impacted by a combined 10,000 barrels of oil equivalent per day (boepd) due to a hit from winter storm Elliott.

Occidental's total average global production was 1.3 million barrels of oil equivalent per day (boed) in the reported quarter, within the midpoint of its guidance and 9% higher than last year.

The company sold its oil for an average of $83.64 per barrel in the fourth quarter, up about 11% from a year earlier.

The Houston, Texas-based shale producer's adjusted earnings of $1.61 per share missed analysts' consensus forecast of $1.80 per share, according to Refinitiv IBES.

Occidental's shares slipped 1% in after-hours trading.

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