Occidental Petroleum (OXY.N) announced on Wednesday that the prices it received for its oil and gas production in the first quarter were higher than the previous quarter.
Benchmark Brent crude prices averaged $74.98 per barrel during the first quarter, marking a 1.3% increase from the previous quarter. U.S. natural gas prices saw a significant rise, up 30%, driven by higher demand caused by a cold winter. Last week, Exxon Mobil (XOM.N) also reported that higher oil and gas prices, along with stronger refining margins, would boost its earnings by about $900 million.
Despite Occidental’s shares dropping nearly 19% this year, they rose over 11% on Wednesday following President Donald Trump’s announcement of increased tariffs on China and a temporary reduction of tariffs for most other countries.
Earnings reports from companies like Occidental and Exxon are closely watched by investors to assess how the industry will perform when quarterly results are released in the coming weeks.
Occidental reported an average realized oil price of $71.07 per barrel in the first quarter, up from $69.73 per barrel in the fourth quarter of 2024. Its average realized price for natural gas rose to $2.30 per thousand cubic feet (Mcf), compared to $1.26 per Mcf in the previous quarter. The company’s price for natural gas liquids (NGL) increased by about 19%, reaching $25.94 per barrel.
Roth MKM analyst Leo Mariani noted that the natural gas prices for the quarter were nearly 7% higher than expected, while NGL prices exceeded estimates by 8.5%.
Occidental is set to report its first-quarter financial results on May 8. Analysts expect the company to post an adjusted profit of 72 cents per share for the quarter ending March 31, according to data from LSEG.
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