Occidental posts US$8 billion loss, outlines oil production cuts

REUTERS: Occidental Petroleum Corp on Monday posted a US$8.35 billion second-quarter loss on lower energy prices and write-downs as the U.S. oil producer has been trying to reduce debt amid a pandemic that has sapped fuel demand and prices. Occidental, which borrowed heavily to finance last year's US$38 billion purchase of rival Anadarko Petroleum, cut the value of its oil and gas properties by US$6.

Its oil and gas production will fall 13per cent this quarter over last, and another 5per cent in the fourth quarter, to 1.16 million barrels of oil and gas per day, the company said. In the Permian, where it became the largest operator through the Anadarko purchase, shale output will drop 37per cent this year, it said.Shares fell nearly 6per cent in late trading after rising US$1.03 at US$16.48. The stock is down 61per cent so far this year.

The average price Occidental received for crude oil plummeted about 61per cent to US$23.17 per barrel in the second quarter as oil prices crashed. It has cut jobs, slashed its dividend, reduced spending plans and sold assets to shore up its finances.Among the assets Occidental is trying to sell is a package of land and minerals in Wyoming and Colorado. The company has said that it hopes to close that sale in the fourth quarter.Its net loss was US$8.35 billion, or US$9.

Excluding one-time items, the company lost US$1.76 per share, compared with analysts' average estimates of US$1.68, according to Refinitiv IBES.

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