Occidental Holds Firm on Production Forecast Despite Midland and Delaware Basin Deals
**Houston-based Occidental Petroleum Corp.** maintained its robust production outlook for 2024, even as it navigates significant transactions in the Midland and Delaware Basins. The(operator) posted its highest production numbers in four years during the second quarter, driven by efficiency gains in unconventional well operations.
**Production Hike and Efficiency Gains**
Occidental’s total production surged to nearly 1,258,000 barrels of oil equivalent (boe) per day in the three months ending June 30, a notable increase from the 1,172,000 boe/d in the first quarter. This uptick reflects the company’s ongoing efforts to optimize operations, achieve lower nonproductive time, and enhance fracking efficiency. Vicki Hollub, Occidental’s CEO, highlighted that these savings have boosted operational efficiency and facilities optimization, positioning the company for further production acceleration in the second half of the year.
**Boost in US Oil Production**
The growth in US oil production has also been substantial. Oil production averaged 553,000 barrels per day (b/d) in the second quarter, a 13% increase from the first quarter of 2024 when output was temporarily affected by a Gulf of Mexico pipeline outage. This rate represents a 6% increase year-over-year, signaling the resilience of Occidental’s operational strategies.
**Barilla Draw Assets and Divestitures**
Despite these production gains, Occidental is set to divest a portion of its assets. The company has announced plans to sell Delaware Basin assets to **Permian Resources Corp.**, which will involve about 27,500 net acres in the Barilla Draw Field in Texas and approximately 2,000 net acres in New Mexico. These transactions are part of Occidental’s broader divestiture program aimed at reducing debt post its acquisition of CrownRock LP for $12 billion. The planned divestment program