Occidental Petroleum announces fourth quarter and twelve months of 2011 income

Core income was $1.6 billion ($2.02 per diluted share) for the fourth quarter of 2011, compared with $1.3 billion ($1.58 per diluted share) for the fourth quarter of 2010.

Net income for the twelve months of 2011 was $6.8 billion ($8.32 per diluted share), compared with $4.5 billion ($5.56 per diluted share) for the same period in 2010. Core income for the year 2011 exceeded $6.8 billion ($8.39 per diluted share), compared with $4.7 billion ($5.72 per diluted share) for the same period in 2010.

In announcing the results, Stephen I. Chazen, President and Chief Executive Officer, said, 'The 2011 net income of $6.8 billion was 49-percent higher than 2010. For the year, we continued to generate strong financial results with cash flow from operations of $12.3 billion and ROE of 19 percent. We increased our annual dividend by 21 percent to $1.84 per share.

'Our domestic fourth quarter oil and gas production of 449,000 barrels of oil equivalent per day was the highest in Occidental's history, breaking the previous record achieved last quarter. The domestic production also reflected our highest ever quarterly volume for liquids. Total company production was 748,000 BOE per day for the fourth quarter, an increase of nearly 5 percent from the fourth quarter of 2010. Total company production for the full year of 2011 was 733,000 BOE per day, an increase of nearly 4 percent from 2010.'

Oil and gas segment earnings were $2.5 billion for the fourth quarter of 2011, compared with $1.7 billion for the fourth quarter of 2010. After excluding 2010 domestic asset impairments, the fourth quarter of 2010 core segment earnings were $1.9 billion. The increase in the fourth quarter of 2011 earnings was due to higher liquids volumes and prices, partially offset by higher operating costs and DD&A rates.

For the fourth quarter of 2011, daily oil and gas production volumes averaged 748,000 barrels of oil equivalent (BOE), compared with 714,000 BOE in the fourth quarter of 2010. As a result of higher year-over-year average oil prices and other factors affecting production sharing and similar contracts, production was reduced in the Middle East/North Africa and Colombia by 17,000 BOE per day.

The fourth quarter 2011 production volume increase was a result of 61,000 BOE per day higher domestic volumes, partially offset by lower volumes in the Middle East/North Africa and Colombia. The domestic increase was from South Texas, the Williston Basin and California. The Middle East/North Africa was lower due to the decline of production in Libya and the effect of price and other factors on production sharing contracts.

Daily sales volumes increased from 699,000 BOE per day in the fourth quarter of 2010 to 749,000 BOE per day in the fourth quarter of 2011.

Oxy's realized price for worldwide crude oil was $99.62 per barrel for the fourth quarter of 2011, compared with $79.96 per barrel for the fourth quarter of 2010. The fourth quarter of 2011 realized oil price represents 106 percent of the average WTI and 91 percent of the average Brent price for the quarter. Worldwide NGL prices were $55.25 per barrel in the fourth quarter of 2011, compared with $49.17 per barrel in the fourth quarter of 2010. Domestic gas prices decreased from $4.13 per MCF in the fourth quarter of 2010 to $3.59 per MCF for the fourth quarter of 2011.