**Occidental Petroleum Stands Firm on Production Forecasts Amid Midland and Delaware Basin Transactions**
In a recent update, Occidental Petroleum Corp. reaffirmed its 2024 production guidance despite several significant transactions in the Midland and Delaware basins. The company posted its highest production numbers in four years during the second quarter, with a total of nearly 1.26 million barrels of oil equivalent per day (boe/d). This figure marks a 6% increase from the same period last year and is slightly above the midpoint of the company’s initial guidance provided in the spring.
**Production and Market Performance**
Occidental’s average production over the three months ended June 30 rose to 1.26 million boe/d, up from approximately 1.17 million boe/d in the first quarter. This growth is notable, particularly given a 13% increase in US oil production to 553,000 barrels per day (b/d). The surge in production is partly attributed to previous deals, such as the CrownRock acquisition, which is expected to add an additional 170,000 boe/d in 2024.
**Efficiency Gains and Cost Savings**
Vicki Hollub, Occidental’s CEO, emphasized the role of efficiency gains in driving these results. The company has achieved about a 10% reduction in unconventional well costs so far in 2024 through lower nonproductive time, increased frac utilization, operational efficiency gains, and facilities optimization. Hollub also hinted at further acceleration in time-to-market efficiencies in the second half of the year.
**Financial Performance**
Net profits for Occidental totaled $992 million in the second quarter, a significant increase from $605 million in the same period of 2023. The company’s oil and gas assets generated nearly $1.2 billion in segment income, while its midstream operations saw a reversal of losses from the previous year. However, chemical operations faced economic challenges, particularly in China, resulting in lower profits