As Reuters reported yesterday, U.S. oil and gas producers Occidental Petroleum Corp and Devon Energy Corp surpassed Wall Street’s profit expectations. Particularly, these optimistic results came as easing travel curbs, and rising vaccinations are boosting fuel demand and crude prices worldwide.
Read more of our news content, here; Equitrans to increase natural gas connectivity in the Appalachian Basin
Under these circumstances, shares of Occidental rose nearly 2% to $26.95 in extended trade, while Devon climbed 1.9% to $26.70.
Rebounding oil prices and other conditions
Particularly, these are optimistic news since after a crushing 2020, oil prices are starting to rebound to pre-pandemic levels; and, indeed, to multi-year highs. Therefore, oil prices are now trading at over $70 a barrel, thanks to output curbs by the OPEC+ and a pick-up in economic activity.
Simultaneously, Devon also announced a fixed-plus-variable dividend of 49 cents per share; in fact, 44% higher than last quarter’s payout. Thus, the company underscored the energy industry’s focus on shareholder returns, overspending to expand production.
About Devon Energy
Noteworthy, Devon Energy is a leading oil and gas producer in the U.S. with a premier multi-basin portfolio. Besides, the company holds a world-class acreage position in the Delaware Basin.
Accordingly, Devon’s disciplined cash-return business model aims to achieve strong returns and generate free cash flow. Notably, the company focuses on returning capital to shareholders while focusing on safe and sustainable operations.
Similarly, Peers Diamondback Energy Inc recently increased its annual dividend by 12.5% to $1.80 per share. Additionally, another oil player, Pioneer Natural Resources Co, declared an inaugural variable dividend of $1.51 per share on Monday.
About Occidental Petroleum and its results
On Occidental’s side, the company said its total production from continuing operations rose to 1.2 million barrels of oil equivalent per day (boepd); in fact, 7.7% higher sequentially. Also, the company’s average price for crude oil rose to $60.05 per barrel from $55.65 barrel in the prior quarter.
Worth noting, Occidental is an international energy company with assets in the United States, Middle East, Africa, and Latin America. Accordingly, it is one of the largest oil producers in the U.S. and a leading one in the Permian and DJ basins and the offshore Gulf of Mexico.
Additionally, the oil and gas producer announced it adjusted its profit attributable to common stockholders at $311 million, or 32 cents per share. Previously, analysts estimated 3 cents per share, according to Refinitiv IBES.
