Western Oil (OXY.US) transitions to a loss in Q4 YoY, divests $1.2 billion of upstream assets to repay debt.

Western Oil (OXY.US) reported a loss in the fourth quarter due to environmental liabilities and falling oil prices. The average price of Brent crude futures in the fourth quarter fell year-on-year, hit by concerns over demand due to the slowdown in major economies and the double blow of OPEC+ delaying planned supply increases and extending deep cuts to the end of 2026, highlighting weak demand. The company reported a loss of $297 million in the quarter ended December 31, compared with a profit of $1.03 billion in the same period a year ago. The company said its average realized price for oil in the fourth quarter was $69.73 per barrel, down from $78.85 per barrel in the same period a year ago. The US shale oil producer had warned last month that its oil production in the fourth quarter would be lower. The company also noted that the recent federal court ruling had increased long-term environmental liabilities, which also weighed on earnings. But adjusted EPS was 80 cents, topping analysts' average estimate of 70 cents, helped by higher production. Global daily production rose 18.6% year-on-year to 1.46 million barrels of oil equivalent in the quarter. The company also said it had completed two deals to sell part of its upstream assets to unnamed buyers for a total of $1.2 billion in the quarter. The deals involved non-operated assets in the Rockies and part of the Permian Basin that are not part of the company's recent development plans and are expected to close by the end of the quarter. The company said it planned to use the proceeds from the deals to repay debt. Western Oil revealed it had achieved its $4.5 billion short-term debt repayment target in the fourth quarter, following its $12 billion acquisition of private CrownRock in August last year.