Occidental Petroleum Reports Record Achievements in 2006
Occidental Petroleum announced its record-setting achievements for 2006 at the company's annual stockholders meeting. The company reached its highest year-end stock price and largest equity in its history.
LOS ANGELES – Occidental Petroleum Corporation (NYSE:OXY) reported its record-setting financial and operational achievements for 2006 during the company's annual stockholders meeting. Chairman, President and CEO Dr. Ray R. Irani highlighted the company's highest year-end closing stock price, its largest increase in stockholders' equity, and its strongest balance sheet in history.
"Oxy is a highly focused company with two core businesses where the emphasis is on consistent superior performance," Dr. Irani stated. The year-end closing stock price of $48.83 per share, after a two-for-one stock split, was the highest in the company's history. An investment of $100 at year-end 2001 grew to $415 by year-end 2006, significantly outperforming the S&P 500 and S&P Integrated Oil indexes.
Stockholders' equity reached $19.2 billion at the end of 2006, an increase of over 241 percent since the beginning of 2002. Debt has declined for the sixth consecutive year, reaching an all-time year-end low debt-to-capitalization ratio of 13 percent, further reduced to 10 percent in the first quarter.
The company's profit per barrel of oil equivalent and cash flow per barrel led major industry competitors for the eighth consecutive year. Cash flow from operations and core results set new records for the fifth consecutive year. Total proved reserves stand at 2.9 billion barrels of oil equivalent, with production increasing 14 percent to a record 601,000 barrels per day.
Dr. Irani emphasized the strategy of focusing on geographic areas with competitive advantages, including the United States, Middle East, North Africa, and Latin America. The company expects production from these core areas to grow at an annual compounded rate of 5 to 8 percent through 2010. Looking ahead, the company plans to capitalize on growing energy demand and high prices while maintaining financial discipline and focusing on generating strong shareholder returns.