Occidental Petroleum Corp (NYSE:OXY) stock fell 0.88% (As on May 8, 11:46:21 AM UTC-4, Source: Google Finance) after the company beat estimates for first-quarter profit as the oil-and-gas firm benefited from higher oil prices. Crude oil prices in the quarter mirrored prices from the previous year as production cuts by OPEC+ countries offset lower demand, helping oil producers such as Occidental. The company said quarterly average prices for oil were up at $76.04 per barrel, compared with $74.22 per barrel from a year earlier.

OXY in the first quarter of FY 24 has reported the adjusted earnings per share of 63 cents, beating the analysts’ estimates for the adjusted earnings per share of 60 cents, according to LSEG data. Strong operational performance drove operating cash flow of $2.0 billion and cash flow from operations before working capital of $2.4 billion. Capital spending of $1.8 billion and contributions from non-controlling interest of $57 million resulted in quarterly free cash flow before working capital of $720 million. Total company production of 1,172 Mboed near the mid-point of guidance while overcoming the extended third-party outage in the eastern Gulf of Mexico.

Moreover, Oil and gas pre-tax income for the first quarter of 2024 was $1.2 billion, compared to pre-tax income of $1.6 billion for the fourth quarter of 2023. Excluding items affecting comparability, first quarter adjusted oil and gas income of $1.3 billion declined from the prior quarter due to lower crude oil prices and domestic crude oil volumes, partially offset by lower domestic lease operating expenses. Average worldwide realized NGL prices increased by 6% from the prior quarter to $22.14 per barrel. Average domestic realized gas prices decreased by 14% from the prior quarter to $1.61 per thousand cubic feet (Mcf). Excluding items affecting comparability, first quarter adjusted OxyChem income of $260 million exceeded guidance by $10 million. Compared to fourth quarter of 2023 income, the increase in first quarter income was primarily due to improved demand for polyvinyl chloride and vinyl chloride monomer along with lower ethylene costs, partially offset by overall lower realized prices across many product lines. Excluding items affecting comparability, first quarter adjusted midstream and marketing results reflected a loss of $64 million, which exceeded guidance by approximately $100 million. Compared to the fourth quarter of 2023, the increase in midstream and marketing results reflected higher crude margins due to the timing impact of crude sales in the marketing business, partially offset by higher equity method investment losses and higher expenses due to increased activities in the low-carbon ventures businesses.