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Occidental (OXY) Q4 Earnings and Revenues Beat Estimates

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Occidental Petroleum Corporation (OXY - Free Report) reported fourth-quarter 2021 earnings of $1.48 per share, beating the Zacks Consensus Estimate of $1.08 by 37%. The company incurred a loss of 65 cents per share in the prior-year quarter. The year-over-year improvement in earnings was due to an increase in operating efficiencies and commodity prices.

Adjusted earnings of Occidental for 2021 were $2.55 per share, beating the Zacks Consensus Estimate of $2.51 by 1.6%.

Total Revenues

Occidental's total revenues were $8,010 million, which surpassed the Zacks Consensus Estimate of $7,190 million by 11.4%. The top line also improved 139.2% from the year-ago quarter. The year-over-year improvement was due to a rise contribution from all its segments.

Total revenues for 2021 were $26.3 billion, increasing 61.3% year over year and surpassing the Zacks Consensus Estimate of $25.4 billion by 3.5%.

Segment Details

Oil and Gas revenues for the quarter were $5,817 million, up 95.4% year over year.

Chemical revenues for the quarter were $1,575 million, up 59.4% year over year.

Midstream & Marketing revenues for the quarter were $857 million, up 109% year over year.

Production & Sales

Occidental’s total production volume for the fourth quarter was 1,189 thousand barrels of oil equivalent per day (Mboe/d), which exceeded the upper end of the guided range of 1,125-1,155 Mboe/d. Strong production volumes were attributed to higher volumes from the Rockies and Other Domestic assets. Permian Resources production for the fourth quarter was 490 Mboe/d, which exceeded the guided range of 472-482 Mboe/d.

For the quarter under review, total sales volume was 1,193 Mboe/d, up 3% from 1,158 Mboe/d recorded in the year-ago period. The improvement was due to an increase in U.S. and international sales volumes.

Realized Prices

Fourth-quarter realized prices of crude oil improved 84.9% year over year to $75.39 per barrel on a worldwide basis. Worldwide realized natural gas liquids prices also improved 144.3% from the prior-year quarter to $36.52 per barrel.

Worldwide natural gas prices increased 199.4% from the year-ago quarter to $4.64 per thousand cubic feet. Along with a year-over-year increase in sales volume, the company benefited from a worldwide improvement in commodity prices.

Highlights of the Release

Occidental’s total expenses for the reported quarter were $6,120 million, up 19.8% year over year.

Occidental generated $2.9 billion free cash flow in the fourth quarter and repaid debts worth $2.2 billion, further strengthening the balance sheet.

Occidental achieved 241% reserve replacement in 2021. Further, 2021-end proved reserves were 3.51 billion barrels of oil equivalent (Bboe), up 2.9 Bboe at 2020-end.

Interest expenses for the reported quarter were down 5.9% to $385 million from $409 million in the year-ago period.

Financial Position

As of Dec 31, 2021, Occidental had cash and cash equivalents of $2,764 million compared with $2,008 million in the corresponding period of 2020.

As of Dec 31, 2021, the company had long-term debt (net of current portion) of $29,431 million compared with $35,745 million in the comparable period of 2020. The debt level decrease was due to effective management of debt since the acquisition of Anadarko.

For 2021, cash from operations was $11,679 million, up from $5,120 million in the prior-year period.

Occidental’s total capital expenditure for 2021 was $2,870 million compared with $2,535 million invested in the year-ago period.

Guidance

For first-quarter 2022, OXY expects production in the range of 1,070-1,090 Mboe/d and output from Permian Resources in the band of 465-473 Mboe/d. Occidental expects exploration expenses to be $55 million.

Occidental plans to invest in the range of $3.9-$4.3 billion in 2022. For 2022, OXY expects production in the range of 1,140-1,170 Mboe/d and output from Permian Resources in the band of 527-537 Mboe/d.

Zacks Rank

Currently, Occidental sports a Zacks Rank #1 (Strong Buy).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Releases

Devon Energy Corp. (DVN - Free Report) reported fourth-quarter 2021 adjusted earnings of $1.39 per share, beating the Zacks Consensus Estimate of $1.21 by 14.9%.

Devon’s long-term (three to five years) earnings growth is currently pegged at 40.7%. The Zacks Consensus Estimate for DVN’s 2022 earnings implies year-over-year growth of 74.8%.

CNX Resources Corporation (CNX - Free Report) reported fourth-quarter 2021 adjusted earnings of 31 cents per share, which lagged the Zacks Consensus Estimate of 49 cents by 36.7%.

CNX Resources’ long-term earnings growth is currently pegged at 41.6%. The Zacks Consensus Estimate for CNX’s 2022 earnings implies year-over-year growth of 20.5%.

Cheniere Energy (LNG - Free Report) reported fourth-quarter 2021 loss of $1.17 per share against the Zacks Consensus Estimate of earnings of $1.81.

Cheniere Energy’s long-term earnings growth is currently pegged at 28.9%. The Zacks Consensus Estimate for LNG’s 2022 earnings implies year-over-year growth of 197.8%.

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