### Occidental Holdings Steady Amidst Midland and Delaware Basin Deals
Occidental Petroleum Corp., a major player in the oil and gas industry, has reaffirmed its production forecast despite significant moves in the Midland and Delaware Basins. The company’s recent quarterly earnings report highlights a notable uptick in operational efficiency and a stable production outlook.
#### Strong Production Levels
In the second quarter of 2024, Occidental averaged nearly 1.258 million barrels of oil equivalent per day (boe/d), surpassing the first-quarter total of 1.172 million boe/d. This latest quarter’s production numbers are slightly above the midpoint of the company’s guidance provided earlier in the spring. The significant increase can be attributed to the integration of the recently acquired Midland Basin operations from CrownRock LP, which is expected to offset the pending loss of barrels from a planned divestiture in the Delaware Basin.
#### Efficiency Gains Drive Success
Efficiency gains have been a major drivers of Occidental’s recent success. Unconventional well cost savings of about 10% have been achieved through lower nonproductive time, increased frac utilization, operational efficiency gains, and facilities optimization. CEO Vicki Hollub highlighted these achievements on an August 8 conference call, noting that the company anticipates further acceleration in time to market in the second half of the year.
#### Revenue and Profit
The oil and gas assets produced segment income for Occidental nearly reached $1.2 billion in the second quarter, while the midstream and marketing business reversed a prior-year loss. However, profits from the chemical operations fell to $227 million from $337 million primarily due to economic weakness in China.
#### Debt Reduction Strategy
To finance its acquisition of CrownRock and manage debt, Occidental has initiated a strategy to divest non-core assets. The planned sales are part of a broader $4.5 billion to $6 billion divestiture program, which is aimed at