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Occidental Petroleum, Devon Energy impress Wall St as oil price bounces By Reuters

© Reuters. FILE PHOTO: The logo for Occidental Petroleum is displayed on a screen on the floor at the New York Stock Exchange (NYSE) in New York, U.S., April 30, 2019. REUTERS/Brendan McDermid

(Reuters) – U.S. oil and gas producers Occidental Petroleum Corp (NYSE:) and Devon Energy Corp (NYSE:) blew past Wall Street’s profit expectations on Tuesday, as easing travel curbs and rising vaccinations boosted fuel demand and crude prices.

Shares of Occidental rose nearly 2% to $26.95 in extended trade, while Devon climbed 1.9% to $26.70.

After a crushing 2020, oil prices have rebounded to multi-year highs and are now trading at over $70 a barrel, thanks to output curbs by the OPEC+ and a pick-up in economic activity.

Devon also announced a fixed-plus-variable dividend of 49 cents per share, 44% higher than last quarter’s payout, underscoring the energy industry’s focus on shareholder returns over spending to expand production.

Peers Diamondback (NASDAQ:) Energy Inc increased its annual divided by 12.5% to $1.80 per share and Pioneer Natural Resources (NYSE:) Co declared an inaugural variable dividend of $1.51 per share on Monday.

Occidental said its total production from continuing operations rose to 1.2 million barrels of oil equivalent per day (boepd), 7.7% higher sequentially.

The company’s average price for worldwide rose to $60.05 per barrel from $55.65 barrel in the prior quarter.

The oil and gas producer’s adjusted profit attributable to common stockholders stood at $311 million, or 32 cents per share, for the three months ended June 30. Analysts had estimated 3 cents per share, according to Refinitiv IBES.

Devon posted core earnings of 60 cents per share, beating an estimate of 52 cents per share.

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