By Sabrina Valle and Sourasis Bose
HOUSTON (Reuters) -U.S. oil and gas producer Occidental Petroleum Corp (NYSE:OXY) on Tuesday reported a 48% decline in first-quarter earnings that fell well short of analyst estimates as global economic growth concerns led to a decline in oil prices.
Global energy prices in the quarter pulled back from last year's peaks triggered by Russia's invasion of Ukraine. Occidental's crude oil sold for 19% less than the year-ago quarter, averaging $74.22 per barrel.
Earnings declined despite a boost in first quarter oil and gas daily output to 1.22 million barrels from 1.08 million a year earlier, helped by higher production from its Permian operations.
The company, in which billionaire investor Warren Buffett's Berkshire Hathaway (NYSE:BRKa) Inc owns a 24% stake, reported adjusted income dropped 48% from the prior year to $1.1 billion as it accelerated investments and shareholder returns.
Adjusted earnings of $1.09 per share for the quarter fell far short of analysts' $1.24 per share estimate compiled by Refinitiv.
Shares fell 1.6% in late trading to $58.03.
Occidental almost doubled capital spending in the quarter from a year earlier to $1.5 billion, and cash flow from operations before working capital fell 24% to $3.2 billion.
Occidental increased its year-end production guidance by 20,000 barrels of oil and gas to 1.22 million barrels per day.
The company repurchased $752 million of common stock, accounting for over 25% of its $3 billion annual repurchase program and triggered the redemption of $647 million of preferred stock.
Brent crude averaged $82 a barrel in the quarter, about 20% lower than year-ago levels as concerns rose over the health of the global economy amid the recent banking crisis in the U.S. and China's weaker-than-estimated economic recovery.
Average domestic realized gas prices decreased by approximately 32% from the prior quarter to $3.01 per million cubic feet.
Buffett said on Saturday that Berkshire Hathaway was not planning to acquire Occidental but remained happy with its large investment in the oil company.