On Wednesday, Occidental Petroleum, a U.S. shale company, reported that prices for its oil and gas production in the first quarter were higher than in the previous quarter. The increase reflects stronger market conditions, with benchmark Brent crude prices averaging $74.98 per barrel, a 1.3% rise from the last three months of 2024. U.S. natural gas prices also surged by 30%, driven by increased demand due to a cold winter across the country.

The logo for Occidental Petroleum is displayed on a screen on the floor at the New York Stock Exchange (NYSE) in New York, U.S., April 30, 2019.

Occidental’s average realized price for oil reached $71.07 per barrel, up from $69.73 in the prior quarter. For natural gas, the company saw its realized price climb to $2.30 per thousand cubic feet (Mcf), compared to $1.26 per Mcf in the quarter ending December 31, 2024. Additionally, the price for natural gas liquids (NGL) rose to $25.94 per barrel, marking a 19% increase from the previous period. These figures highlight a notable uptick in revenue potential for the shale producer.

The broader industry context supports these gains. Last week, Exxon Mobil, a leading energy firm, indicated that higher oil and gas prices, along with improved refining margins, would boost its earnings by about $900 million. Such updates from major players like Exxon and Occidental are key indicators for investors tracking the sector’s performance ahead of quarterly earnings reports, expected in the coming weeks.

Occidental’s stock, which had declined nearly 19% earlier this year, rose over 11% on Wednesday. This followed an announcement from U.S. President Donald Trump about adjusting trade policies, including plans to raise tariffs on certain goods while easing levies on others. These changes influenced market sentiment, contributing to the stock’s rebound.

Analyst Leo Mariani from Roth MKM noted: “Natgas realization for the quarter was nearly 7% above the brokerage’s expectations, while NGL prices surpassed estimates by 8.5%.” These results suggest Occidental outperformed projections, strengthening its position as it prepares to release full financial details. The company is scheduled to announce its first-quarter results on May 8, with analysts anticipating an adjusted profit of 72 cents per share for the period ending March 31, based on LSEG data.

These developments underscore a positive shift for Occidental Petroleum, driven by favorable pricing and demand trends. The company’s performance, alongside industry signals, offers insight into the shale sector’s outlook as it navigates market dynamics and prepares for its upcoming earnings disclosure.