Occidental Petroleum Corporation reported earnings and production results for the fourth quarter and full year ended December 31, 2012. For the quarter, the company reported core income of $1.5 billion or $1.83 per diluted share compared with $1.6 billion or $2.02 per diluted share for the fourth quarter of 2011. In the fourth quarter of 2012, the company recorded after-tax charges of $1.1 billion or $1.41 per diluted share, almost all of which was related to the impairment of gas assets in the Midcontinent. Net income after this charge was $336 million or $0.42 per diluted share compared with $1.6 billion or $2.01 per diluted share for the same period of 2011. Fourth quarter core income was higher than the third quarter of 2012 as a result of higher liquids volumes, higher realized NGL and domestic gas prices and lower operating expenses. Net sales were $6,171 million compared to $6,034 million reported a year ago. Income from continuing operations was $364 million or $0.45 per diluted share compared to $1,641 million or $2.02 per diluted share reported a year ago. Capital expenditures were $2,510 million compared to $2,549 million reported a year ago.


Core income was $5.8 billion or $7.09 per diluted share for the year 2012 compared with $6.8 billion or $8.39 per diluted share for 2011. Net income was $4.6 billion or $5.67 per diluted share compared with $6.8 billion or $8.32 per diluted share for 2011. Net sales were $24,172 million compared to $23,939 million reported a year ago. Income from continuing operations was $4,635 million or $5.71 per diluted share compared to $6,640 million or $8.16 per diluted share reported a year ago. Capital expenditures were $10,226 million compared to $7,518 million reported a year ago. The company generated cash flow from continuing operations before working capital changes of $12.1 billion.

For the quarter, the company's domestic production of 475,000 barrels of oil equivalent per day, of which 342,000 barrels per day was liquids, set a record for the ninth consecutive quarter. Total company production was 799,000 barrels of oil equivalent per day compared to 748,000 barrels of oil equivalent per day in 2011.

Total company production for all of 2012 was 766,000 barrels of oil equivalent per day, which was 5% higher than 733,000 barrels of oil equivalent per day in 2011. Domestic oil production grew by 11% for all of 2012 to 255,000 barrels per day from 230,000 barrels in 2011.

For the quarter, the company reported asset impairments and related items of $1,731 million.