**Occidental Maintains Production Forecasts Amidst Midland and Delaware Basin Transactions**
Despite recent asset sales in the Delaware Basin, Occidental Petroleum is confident in maintaining its production forecasts for 2024. The company has emphasized that the steady production outlook incorporates the expected output from the recently acquired Midland Basin operations of CrownRock LP, which are set to offset the pending loss of barrels from a planned Delaware Basin divestiture.
In the recent second quarter, Occidental’s total production averaged nearly 1,258,000 boe/d, marking a significant increase from 1,172,000 boe/d in the first quarter. The company’s US oil production alone came in at 553,000 b/d, a 13% rise from the first quarter and a 6% increase year-over-year. These gains are largely attributed to efficiency improvements such as lower non-productive time, increased frac utilization, operational efficiency gains, and facilities optimization.
During an Aug. 8 conference call with analysts and investors, Occidental CEO Vicki Hollub highlighted the cost savings achieved. “These savings have been achieved through lower non-productive time, increased frac utilization, operational efficiency gains, and facilities optimization,” she said. “We anticipate further acceleration in time-to-market in the second half of the year.”
The second quarter also saw a notable increase in segment income from Occidental’s oil and gas assets, reaching nearly $1.2 billion. However, the chemical operations segment experienced a decline in profits, largely due to economic weakness in China.
Looking ahead to the third quarter, Occidental is forecasting total production between 1,370,000 and 1,410,000 boe/d. This range still includes the Barilla Draw assets in the Delaware Basin set to be sold to Permian Resources. For the full year, the company remains committed to a production range of 1,290,000 to 1,340,000 boe/d.
As part of a broader