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HOUSTON – Occidental Petroleum Corp. (NYSE: OXY) recorded a large loss of $8.35 billion in the last quarter due to the ongoing pandemic throttling fuel demand.
The Houston-based company reported earnings of $2.93 billion for the quarter, 35 percent less than it was at the same time last year, and failed to reach Wall Street consensus estimates of $920 million, according to the knowledge of Seeking Alpha Monetary.
Most of the loss came from $6.6 billion in impairment charges, adding $5.2 billion similar to a sharp decrease in the value of its pursued assets and $1.4 billion in impairments for the drilling business and abandoned wells.
Oil and fuel operators across the country have been hit financially because the pandemic and house orders for much of the spring have reduced the need for fuel to force cars to move, planes in the sky and destabilize the chains of origin and shipment of goods.
This sudden and dramatic drop in demand was accompanied by a war of production and value during the two months between Saudi Arabia and Russia, the world moment and the third largest oil-producing country in the United States, further reducing the value of world oil.
Occidental is the largest energy operator in Weld County, generating 39.4 million barrels of oil and 282.98 million cubic feet last year, according to the knowledge of the Colorado Oil and Gas Conservation Commission.
Chevron Corp. (NYSE: CVX), which is in the midst of a $5 billion acquisition of Weld County’s second-largest producer, Noble Energy Inc. (Nasdaq: NBL), recorded a $3 billion loss earlier this month.
© 2020 BizWest Media LLC
HOUSTON – Occidental Petroleum Corp. (NYSE: OXY) recorded a large loss of $8.35 billion in the last quarter due to the ongoing pandemic throttling fuel demand.
The Houston-based company reported earnings of $2.93 billion for the quarter, 35 percent less than it was at the same time last year, and failed to reach Wall Street consensus estimates of $920 million, according to the knowledge of Seeking Alpha Monetary.
Most of the loss came from $6.6 billion in impairment charges, adding $5.2 billion similar to a sharp decrease in the value of its pursued assets and $1.4 billion in impairments for the drilling business and abandoned wells.
Oil and fuel operators across the country have been hit financially as the pandemic and home orders for much of the spring have reduced the need for fuel to force cars to move, planes in the sky and destabilize shipping and cargo source chains.
This sudden and dramatic drop in demand was accompanied by a war of production and value during the two months between Saudi Arabia and Russia, the world moment and the third largest oil-producing country in the United States, further reducing the value of world oil.
Occidental is the largest energy operator in Weld County, generating 39.4 million barrels of oil and 282.98 million cubic feet last year, according to the knowledge of the Colorado Oil and Gas Conservation Commission.
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