Occidental Petroleum, the fourth-largest U.S. oil company, lowered its first-quarter production estimate to 711,000 to 721,000 barrels of oil equivalent per day, 29,000 barrels a day lower than the company previously forecast after citing supply disruptions in Libya and Yemen and lower spending in Iraq.
California-based Occidental (OXY) said production from Libya, Yemen and Iraq will be 15,000 barrels per day below previous estimates. Bad weather in the U.S. and oil prices each will cause Occidental to lower output by 7,000 barrels a day, Bloomberg News reported, citing the company.
While the lower estimates represent the fifth consecutive quarter Occidental has missed on its production targets, analysts do not expect the lower production to have a substantial impact on Occidental's earnings.
Shares of Occidental, the largest onshore oil producer in the U.S., rose nearly 3% after incoming CEO Stephen Chazen said at a New Orleans energy conference that higher dividends are on the way for Occidental investors. The company raised its quarterly payout by 21% in December.