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Occidental's (OXY) Q2 Earnings to Gain From Strong Production

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Occidental Petroleum Corporation (OXY - Free Report) is scheduled to release second-quarter 2022 results on Aug 2. In the last reported quarter, the company delivered an earnings surprise of 7.6%.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors to Consider

Occidental’s second-quarter earnings are expected to have been driven by strong production from its domestic assets, with a robust contribution from the Permian Basin. The improving commodity prices are likely to have a positive impact on OXY’s second-quarter results.

Contributions from the Gulf of Mexico and International assets are likely to have boosted the performance of the company in the second quarter. The reduction of outstanding debt is also expected to have reduced its capital servicing costs and contributed to earnings.

Expectations

The Zacks Consensus Estimate for second-quarter crude oil production is pegged at 618 thousand barrels of oil per day. For natural gas, the Zacks Consensus Estimate for the quarter is pegged at 1,712 thousand cubic feet per day.

Occidental expects total production of 1,130-1,160 thousand barrels of oil equivalent per day (MBOE/d) and output from Permian Resources of 488-498 MBOE/d.

What Our Quantitative Model Predicts

Our proven model conclusively predicts an earnings beat for Occidental this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is the case here, as you see below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Occidental Petroleum Corporation Price and EPS Surprise

 

Occidental Petroleum Corporation Price and EPS Surprise

Occidental Petroleum Corporation price-eps-surprise | Occidental Petroleum Corporation Quote

Earnings ESP: Occidental’s Earnings ESP is +1.78%.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Occidental currently carries a Zacks Rank #2.

Other Stocks to Consider

Here are a few other companies in the same sector that also have the right combination of elements to beat on earnings in the upcoming releases.

Exxon Mobil Corporation (XOM - Free Report) is likely to come up with an earnings beat when it reports second-quarter results on Jul 29. Exxon Mobil has an Earnings ESP of +3.58% and a Zacks Rank #2 at present.

The Zacks Consensus Estimate for Exxon Mobil’s 2022 EPS of $11.70 per share implies a year-over-year increase of 117.47%.

Sunrun (RUN - Free Report) is likely to come up with an earnings beat when it reports second-quarter results on Aug 3. Sunrun has an Earnings ESP of +35.36% and a Zacks Rank #2 at present.

Pioneer Natural Resources Company is likely to come up with an earnings beat when it reports second-quarter results on Aug 8. Pioneer Natural Resources has an Earnings ESP of +0.73% and a Zacks Rank #2 at present.

The Zacks Consensus Estimate for Pioneer Natural Resources’ 2022 EPS of $33.16 per share implies a year-over-year surge of 150.1%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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