• Strong operational performance drove cash flow from operations of $2.9 billion and cash flow from operations before working capital of $3.2 billion
• Capital spending of $1.5 billion, resulting in quarterly free cash flow before working capital of $1.7 billion
• Production of 1,220 Mboed exceeded the mid-point of guidance by 40 Mboed; full-year production guidance raised to 1,195 Mboed
• Repurchased $752 million of common stock, accounting for over 25% of the $3.0 billion repurchase program
• Triggered the redemption of $647 million of preferred stock, initiating the next phase of shareholder return framework
• OxyChem approximated guidance with pre-tax income of $472 million; full-year guidance raised to $1.5 billion
• Earnings per diluted share of $1.00 and adjusted earnings per diluted share of $1.09

Occidental has announced net income attributable to common stockholders for the first quarter of 2023 of $983 million, or $1.00 per diluted share, and adjusted income attributable to common stockholders of $1.1 billion, or $1.09 per diluted share. 

"In the first quarter of 2023, our shareholder return framework reached a significant milestone as we began redeeming the preferred equity, further advancing the transfer of enterprise value to our common shareholders,” said President and Chief Executive Officer Vicki Hollub. "Our teams continue to deliver outstanding operational performance, which drives our financial success. We are well-positioned to build on the successful first quarter and have raised full-year guidance for Oil & Gas production, as well as OxyChem pre-tax earnings."

QUARTERLY RESULTS

Oil and Gas
Oil and gas pre-tax income for the first quarter of 2023 was $1.6 billion, compared to pre-tax income of $2.5 billion for the fourth quarter of 2022. The first quarter results included a $26 million gain from a litigation settlement. Excluding items affecting comparability, first quarter oil and gas income declined due to lower worldwide crude oil, natural gas liquids (NGL) and domestic natural gas prices and lower crude oil volumes. For the first quarter of 2023, average WTI and Brent marker prices were $76.13 per barrel and $82.20 per barrel, respectively. Average worldwide realized crude oil prices decreased by approximately 11% from the prior quarter to $74.22 per barrel. Average worldwide realized NGL prices decreased by approximately 7% from the prior quarter to $24.41 per barrel. Average domestic realized gas prices decreased by approximately 32% from the prior quarter to $3.01 per Mcf.

Total average global production of 1,220 thousand barrels of oil equivalent per day (Mboed) for the first quarter exceeded the midpoint of guidance by 40 Mboed. Permian, Rockies & Other Domestic, Gulf of Mexico and International average daily production volumes all exceeded guidance at 579 Mboed, 264 Mboed, 171 Mboed and 206 Mboed, respectively.

OxyChem
OxyChem pre-tax income of $472 million for the first quarter of 2023 approximated guidance. Compared to fourth quarter of 2022 income of $457 million, first quarter results reflected lower costs for raw material ethylene and energy, partially offset by lower realized caustic soda and PVC pricing.

Midstream and Marketing
Midstream and marketing pre-tax income for the first quarter of 2023 was $2 million, compared to a loss of $45 million for the fourth quarter of 2022. The first quarter results included $8 million of derivative losses and $26 million of asset impairments included in equity method investment income. WES adjusted equity method investment income for the first quarter was $118 million. Excluding items affecting comparability, the increase in midstream and marketing pre-tax first quarter results reflected the timing impact of crude oil sales and favorable gas margins due to transportation capacity optimization in the marketing business, partially offset by lower equity method investment income from WES.