### Occidental Petroleum Continues to Maintain Production Forecast Amid Midland and Delaware Deals
Occidental Petroleum Corporation, headquartered in Houston, has reaffirmed its production guidance despite recent significant transactions in the Midland and Delaware basins. The company’s steadfast commitment to production targets reflects the strategic integration of new assets and operational efficiencies.
### Market Performance
In the second quarter, Occidental achieved its highest quarterly production levels in four years, totaling approximately 1,258,000 barrels of oil equivalent per day (boe/d) from April to June. This figure is marginally above the midpoint of the company’s guidance for the period, representing a pronounced increase from 1,172,000 boe/d during the first quarter. The notable surge was partly attributed to the acquisition of CrownRock LP’s operations in the Midland basin and the ongoing optimization of unconventional well costs.
### Operational Gains
Efficiency gains and cost savings have been pivotal in driving Occidental’s production metrics higher. CEO Vicki Hollub highlighted that the company has realized about 10% in unconventional well cost savings through the first half of 2024. These savings were primarily achieved through reduced non-productive time, increased frac utilization, operational efficiency improvements, and facilities optimization.
### Asset Divestitures
As part of its broader divestiture strategy, Occidental has announced plans to sell a portion of its Delaware basin assets to Permian Resources for approximately $818 million. This move aligns with the company’s goal of reducing debt following the acquisition of CrownRock, which was valued at $12 billion. The divestiture is expected to generate a total of $970 million in cash, thereby supporting Occidental’s debt reduction targets.
### Financial Performance
The second quarter saw a significant increase in net profits for Occidental, reaching $992 million, up from $605 million in the same period of 2023. The company’s oil and gas assets production segment income nearly doubled to $