In the first quarter, Brent crude prices averaged $74.98 per barrel, a 1.3% increase from the previous quarter. U.S. natural gas prices, which reached a two-year high on March 10, contributed to a 50% year-over-year rise in Occidental’s average domestic realized price for natural gas, reaching $2.42 per thousand cubic feet. The realized price for natural gas liquids (NGL) increased by 17% from the previous year to $25.94 per barrel. While the average realized price for oil dipped compared to last year, it rose 2% from the prior quarter.
Production surged by nearly 19% to 1.39 million barrels of oil equivalent per day, boosted by higher output in the Rockies and the Gulf of America region. Occidental’s CEO Vicki Hollub stated: “We continue to rapidly advance towards our debt reduction goals, and we believe our deep, diverse portfolio of high-quality assets positions us for success in any market environment.”
The company made significant progress in financial management, repaying $2.3 billion in debt year-to-date, supported by asset divestitures. This follows an increase in debt after Occidental’s acquisition of privately-held CrownRock in the previous year.
Occidental’s strong performance reflects its ability to capitalize on favorable market conditions and operational efficiency. The company’s focus on debt reduction and leveraging its diverse asset portfolio positions it for sustained growth in the energy sector.
