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Occidental Petroleum announces 4Q and full year 2018 results
HOUSTON, February 12, 2019 -- Occidental Petroleum Corporation (Oxy) today announced net income for 4Q 2018 of $706 million, or $0.93 per diluted share, which included impairment charges of $220 million. Core income for 4Q 2018 was $922 million, or $1.22 per diluted share.
Oil and gas pre-tax income for 4Q 2018 was $145 million, compared to $767 million for the prior quarter. Oxy recorded impairment charges on its Qatar assets of $220 million and $196 million in the 4Q and 3Q of 2018, respectively. Excluding these impairment charges, oil and gas pre-tax income was $365 million for 4Q 2018, compared to $963 million for 3Q 2018.
Total average daily production volumes were 700,000 barrels of oil equivalent (BOE) for 4Q 2018, compared to 681,000 BOE in 3Q 2018. Permian Resources average daily production volumes for 4Q 2018 were 250,000 BOE, at the high end of guidance and an increase of 11% from the prior quarter due to improved well performance and development activity. Compared to 4Q 2017, Permian Resources production increased by more than 57%t. International average daily volumes decreased by 7,000 BOE in 4Q 2018, compared to the prior quarter.
For 4Q 2018, average WTI and Brent marker prices were $58.81/bbl and $68.08/bbl, respectively. Average worldwide realized crude oil prices decreased by 10% from the prior quarter to $56.11/bbl. Average worldwide realized NGL prices decreased by 23% from the prior quarter to $22.88 per BOE.
Chemical pre-tax income for 4Q 2018 was $223 million, compared to $321 million for the prior quarter. The decline was primarily due to lower realized caustic soda pricing and unfavorable natural gas and ethylene costs. In addition, scheduled plant outages combined with typical seasonality resulted in lower production volumes across many product lines.
Midstream and marketing pre-tax income for 4Q 2018 was $675 million, compared to $1.7 billion for the prior quarter. Earnings in 3Q 2018 had included a pre-tax net gain on sale of approximately $900 million for the Centurion common carrier oil pipeline and storage system, the Southeast New Mexico oil gathering system and the Ingleside Crude Terminal. Excluding the gain on sale, midstream pre-tax income from 3Q 2018 was $796 million. The decrease in 4Q income reflected lower Midland-to-Gulf-Coast spreads in the marketing business, lower pipeline income due to the sale of the Centurion pipeline in 3Q and lower Dolphin Pipeline equity income. -- Donna Todd