HOUSTON--(BUSINESS WIRE)--Occidental Petroleum Corporation (NYSE: OXY) announced core income for the third quarter of 2015 of $24 million or $0.03 per diluted share. Reported income was a loss of $3.42 per diluted share for the quarter, including $2.6 billion after tax charges, which reflect the sharp decline in the oil and gas futures price curves, as well as projects that management determined it would cease to pursue. Operating cash flow for the quarter was $1.0 billion, with total cash on the balance sheet at quarter-end of $4.3 billion.

In announcing the results, Stephen I. Chazen, President and Chief Executive Officer, said, 'Our third quarter daily production increased to 689,000 BOE from last year's 595,000 BOE, an increase of 16 percent. Permian Resources and the start up of Al Hosn drove nearly all of the 94,000 BOE per day year-over-year growth. We have made a strategic decision to exit the Williston Basin and will continue to evaluate and minimize our involvement in non-core operations in the Middle East and North Africa. This will result in improved operating cash flow, lower future capital commitments, lower G&A costs and better overall financial returns for our remaining asset base.

'Although oil and NGL prices declined sequentially in the third quarter, our operating cash flow increased to $1.0 billion from $800 million in the second quarter of 2015. We reduced our capital spending another $300 million to $1.2 billion in the third quarter compared to $1.5 billion in the second quarter. Permian Resources continues to represent over 50 percent of total oil and gas spending. We continue to achieve drilling efficiencies and reduce unit operating costs. Wolfcamp well costs in the Delaware Basin are down over 40 percent and our Permian Resources unit operating costs are down 18 percent from a year ago.

'The actions we have taken to exit non-core assets, improve drilling efficiencies and lower well and unit operating costs provide greater focus in both our U.S. and international oil and gas operations and will strengthen the financial results of the overall enterprise.'

QUARTERLY RESULTS
Oil and Gas

Total oil and gas after-tax results were $17 million for the third quarter of 2015, compared to $108 million for the second quarter of 2015 and $900 million for the third quarter of 2014. The decrease in oil and gas results on a sequential and year-over-year basis was substantially due to lower realized commodity prices.

The average quarterly WTI and Brent marker prices were $46.43 per barrel and $51.17 per barrel, respectively, for the third quarter of 2015, a decrease of about 20 percent on a sequential quarterly basis and over 50 percent on a year-over-year basis. Our average worldwide realized crude oil prices were $47.78 per barrel for the third quarter of 2015, a decrease of 12 percent compared with the second quarter of 2015 and nearly 50 percent compared with the third quarter of 2014. Our average worldwide NGL prices were $14.68 per barrel in the third quarter of 2015, a decline of 19 percent from the preceding quarter and 62 percent from the third quarter of last year. Our average domestic natural gas prices improved by 7 percent in the third quarter of 2015 to $2.24 per MCF compared to the second quarter of 2015, and fell by 40 percent compared with the third quarter of 2014.

For the third quarter of 2015, total company average daily oil and gas production volumes increased by 94,000 barrels of oil equivalent (BOE) to 689,000 BOE from 595,000 BOE in the third quarter of 2014. Domestic average daily production increased by 17,000 BOE to 332,000 BOE in the third quarter of 2015 with the majority of the increase coming from oil production, which grew by 22,000 barrels to 204,000 barrels per day, with all of the increase attributable to Permian Resources. The increase in Permian Resources oil production was partially offset by lower oil and natural gas production in the Midcontinent and Other regions, of which Williston's average daily production was down by 4,000 BOE to 17,000 BOE compared to the third quarter of 2014. International average daily production increased to 357,000 BOE in the third quarter of 2015 from 280,000 BOE in the third quarter of 2014. The increase in international production is mainly due to the ramp up in production at Al Hosn, which produced 50,000 BOE per day in the third quarter of 2015.

Total company average daily oil and gas production increased by 31,000 BOE compared to the second quarter of 2015. Third quarter domestic average daily production was about flat to the second quarter of 2015. Permian Resources average daily production grew by 7,000 BOE, with 3,000 BOE of the increase coming from oil production growth. The increase in Permian Resources production was offset by lower gas production in the Midcontinent and Other regions where we have curtailed all development activities due to the gas price environment. The increase in international average daily production of 32,000 BOE compared to the second quarter of 2015 reflected improved production rates at Al Hosn, which increased by 32,000 BOE, and operational improvements in other Middle East countries. These improvements in production were partially offset by the partial loss of Colombia production due to insurgency activities.

Total company average daily sales volumes were 670,000 BOE in the third quarter of 2015 compared to 657,000 BOE for the second quarter of 2015 and 590,000 BOE in the third quarter of 2014.

Chemical

Chemical pre-tax core earnings for the third quarter of 2015 were $174 million, compared to $136 million in the second quarter of 2015 and $140 million in the third quarter of 2014. Compared to the second quarter of 2015, the third quarter benefited from higher chlorovinyl production volumes and lower ethylene costs partially offset with lower vinyl sales prices. On a year-over-year basis, the third quarter of 2015 reflected lower ethylene and energy costs partially offset by lower sales prices and volumes across most product lines.

Midstream and Marketing

Midstream pre-tax core earnings for the third quarter of 2015 were $31 million, compared to $84 million for the second quarter of 2015 and $155 million for the third quarter of 2014. The decrease in earnings compared to the second quarter of 2015 mainly reflected lower marketing margins due to the narrowing of WTI and LLS differentials as an increase in supply of crude oil has lowered premiums in the Gulf Coast. The lower marketing margins were partially offset by higher pipeline income from both domestic and foreign pipelines and higher seasonal margins from power generation operations. Compared to the third quarter of 2014, the third quarter of 2015 reflected lower marketing margins due to the narrowing of WTI and LLS differentials and lower gas plant results due to the significant decline in NGL prices.

About Occidental Petroleum

Occidental Petroleum Corporation is an international oil and gas exploration and production company with operations in the United States, Middle East region and Latin America. Headquartered in Houston, Occidental is one of the largest U.S. oil and gas companies, based on equity market capitalization. Occidental's midstream and marketing segment gathers, processes, transports, stores, purchases and markets hydrocarbons and other commodities in support of Occidental's businesses. The company's wholly owned subsidiary OxyChem manufactures and markets chlor-alkali products and vinyls.

Forward-Looking Statements

Portions of this press release contain forward-looking statements and involve risks and uncertainties that could materially affect expected results of operations, liquidity, cash flows and business prospects. Actual results may differ from anticipated results, sometimes materially, and reported results should not be considered an indication of future performance. Factors that could cause results to differ include, but are not limited to: global commodity pricing fluctuations; supply and demand considerations for Occidental's products; higher-than-expected costs; the regulatory approval environment; reorganization or restructuring of Occidental's operations; not successfully completing, or any material delay of, field developments, expansion projects, capital expenditures, efficiency projects, acquisitions or dispositions; uncertainties about the estimated quantities of oil and natural gas reserves; lower-than-expected production from development projects or acquisitions; exploration risks; general economic slowdowns domestically or internationally; political conditions and events; liability under environmental regulations including remedial actions; litigation; disruption or interruption of production or manufacturing or facility damage due to accidents, chemical releases, labor unrest, weather, natural disasters, cyber attacks or insurgent activity; failure of risk management; changes in law or regulations; or changes in tax rates. Words such as 'estimate,' 'project,' 'predict,' 'will,' 'would,' 'should,' 'could,' 'may,' 'might,' 'anticipate,' 'plan,' 'intend,' 'believe,' 'expect,' 'aim,' 'goal,' 'target,' 'objective,' 'likely' or similar expressions that convey the prospective nature of events or outcomes generally indicate forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this release. Unless legally required, Occidental does not undertake any obligation to update any forward-looking statements, as a result of new information, future events or otherwise. Material risks that may affect Occidental's results of operations and financial position appear in Part I, Item 1A 'Risk Factors' of the 2014 Form 10-K. Occidental posts or provides links to important information on its website at www.oxy.com.