Occidental Petroleum Corp. (NYSE: OXY), the U.S. oil explorer that is breaking up in a bid to enrich shareholders, said third-quarter profit fell amid the company’s worst production slump in eight years.
Net income declined to $1.21 billion or $1.55 a share, from $1.58 billion, or $1.97, a year earlier, Houston-based Occidental said in a statement Oct. 23. Per-share profit excluding one-time items was 1 cent lower than the $1.59 average of 25 analysts’ estimates compiled by Bloomberg.
Oil and natural gas output from Occidental’s wells dropped for a fourth straight quarter, the longest losing streak since 2004-2006. The company has also been squeezed by a slide in crude prices driven by a glut of North American supply. The benchmark U.S. price has fallen 24% since reaching this year’s high of $107.73 a barrel on June 20.
Occidental plans to spin off its California business to shareholders next month as part of CEO Stephen Chazen’s breakup of the global oil and gas empire assembled by his predecessor Ray Irani over three decades. Chazen, a Michigan State University-trained geologist, also is auctioning off or seeking partners in oil fields and other assets from North Dakota to the Middle East.
Earnings were released before regular trading began in U.S. markets. Occidental fell 1.5% to $89.70 in New York on Oct. 22. The company has 19 buy ratings and 12 holds from analysts.
Occidental stock is down 6.2% in the past year, compared with a 0.3% increase for the Standard & Poor’s 500 Energy Index, according to data compiled by Bloomberg. The spinoff of the unit to be known as California Resources Corp. is scheduled to take place on Nov. 30.
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