By Sabrina Valle
(Reuters) -Occidental Petroleum on Tuesday beat analysts’ third-quarter profit estimates on strong U.S. oil production, but its results were well below a year ago due to lower energy prices and weaker chemical and pipeline results.
The oil and gas company reported a $1.18 a share profit compared to Wall Street analysts forecast for an 84-cent profit, according to LSEG. Adjusted earnings of $1.13 billion were below the year-ago’s $2.47 billion.
U.S. oil producers are reporting weaker third-uarter profits on a drop in oil and gas prices from a year ago. The company sold its oil last quarter for an average $80.70 per barrel, down from $83.64 per barrel a year-ago.
Shares were up 70 cents a share in late trading after closing down 2.5% at $60.20 apiece.
The U.S. oil and gas producer pumped 1.22 million barrels of oil and gas per day (mboed), well above the 1.19 mboed midpoint it was forecast in August. It also raised its full-year production guidance by 11,000 bpd.
Results were also helped by asset sales of $142 million after tax, including properties in the Permian Basin.
Its chemical and midstream units fell compared to a year ago. Midstream swung to a loss of $130 million from a $104 million profit a year ago.
Profit in its chemicals business fell to $373 million from $580 a year ago.
Separately, Occidental said investment firm BlackRock agreed to invest $550 million in a proposed direct air capture carbon project in Texas.
WTI crude prices increased 9.4% on a sequential basis during the quarter, on the back of the extension of production cuts by OPEC+ members led by Saudi Arabia and Russia.
On an adjusted basis, the company earned $1.18 per share, compared with average analysts’ estimate of 84 cents per share, according to LSEG data.
(Reporting by Sourasis Bose in Bengaluru; Editing by Krishna Chandra Eluri and Stephen Coates)
