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Occidental's (OXY) Q4 Earnings and Revenues Miss Estimates
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Occidental Petroleum Corporation (OXY - Free Report) reported fourth-quarter 2022 earnings of $1.61 per share, lagging the Zacks Consensus Estimate of $1.83 by 12%. Earnings in the fourth quarter were lower than our estimate of $1.76 per share. In the year-ago quarter, the company reported earnings of $1.48. Earnings improved year over year due to higher crude oil sales volumes.
GAAP earnings of Occidental in fourth-quarter 2022 were $1.74 per share compared with $1.37 in the year-ago quarter.
In 2022, earnings per share were $9.35, up 266.7% from last year's earnings of $2.55 per share.
Total Revenues
Occidental's total revenues were $8,326 million, which lagged the Zacks Consensus Estimate of $8,668 million by 3.9%. Total revenues were lower than our estimate of $8,794.1 million.
In 2022, revenues were $37.09 billion, up 128.1% year over year.
Occidental Petroleum Corporation Price, Consensus and EPS Surprise
Oil and Gas revenues for the quarter were $6,296 million, up 111.5% year over year.
Chemical revenues for the quarter were $1,473 million, up 49.1% year over year.
Midstream & Marketing revenues for the quarter were $775 million, up 89% year over year.
Production & Sales
Occidental’s total production volume for the fourth quarter was 1,227 thousand barrels of oil equivalent per day (Mboe/d), which was within the company’s guidance of 1,200-1,260 Mboe/d. Strong production volumes were attributed to higher volumes from the Permian and International assets. Permian Resources’ production for the fourth quarter was 565 Mboe/d, which was within the guided range of 556-590 Mboe/d.
For the quarter under review, total sales volume was 1,230 Mboe/d, up 3.1% from 1,193 Mboe/d recorded in the year-ago period. The improvement was due to an increase in U.S. sales volume.
Realized Prices
The fourth quarter’s realized prices of crude oil improved 10.9% year over year to $83.64 per barrel on a worldwide basis. Realized natural gas liquids prices fell 27% from the prior-year quarter to $26.35 per barrel worldwide.
Natural gas prices decreased 3.6% from the year-ago quarter to $3.72 per thousand cubic feet worldwide.
Highlights of the Release
As of Dec 31, 2022, Occidental's worldwide proved reserves totaled 3.8 billion barrels of oil equivalent (BOE) compared with 3.5 billion BOE for the same period in the prior year.
Occidental’s total expenses for the reported quarter were $6,118 million, a tad lower year over year.
The company generated $2.6 billion in free cash flow in the fourth quarter and lowered its debts by more than $10.5 billion in 2022, which cut more than $400 million in interest expenses per year.
Interest expenses for the reported quarter were down 32.5% to $260 million from $449 million in the year-ago period.
In 2022, Occidental repurchased more than 47.7 million shares for $3 billion and again authorized a $3 billion share repurchase program.
Financial Position
As of Dec 31, 2022, Occidental had cash and cash equivalents of $984 million compared with $2,764 million as of Dec 31, 2021.
As of Dec 31, 2022, the company had long-term debt (net of current portion) of $19,670 million compared with $29,431 million as of Dec 31, 2021. The decrease in the company’s debt level was due to its effective debt management since the acquisition of Anadarko.
In 2022, cash flow from operations was $18,135 million, up from $11,679 million in the prior year.
Occidental’s total capital expenditure for 2022 was $4,497 million compared with $2,870 million invested in 2021.
Guidance
For the first quarter of 2023, OXY expects production of 1,160-1,200 Mboe/d and output from Permian Resources of 555-575 Mboe/d. Occidental expects first-quarter exploration expenses of $115 million.
For 2023, OXY expects production of 1,150-1,210 Mboe/d and output from Permian Resources of 560-590 Mboe/d. Occidental expects 2023 exploration expenses of $420 million.
OXY aims to repurchase shares worth $3 billion in 2023, which will further improve shareholders’ value.
Occidental has plans to invest $5.4-$6.2 billion in 2023 to further strengthen its operation.
CNX Resources Corporation (CNX - Free Report) reported fourth-quarter 2022 operating earnings of $1.64 per share, beating the Zacks Consensus Estimate of 57 cents by 188%.
CNX Resources’ long-term (three- to five-year) earnings growth is currently pegged at 20.7%. The Zacks Consensus Estimate for CNX’s 2023 earnings of $2.14 per share implies a year-over-year decline of 23.8%.
TotalEnergies SE (TTE - Free Report) has reported fourth-quarter 2022 operating earnings of $2.97 (€2.93) per share, beating the Zacks Consensus Estimate of $2.93 per share by 1.4%.
TTE’s long-term earnings growth is currently pegged at 9.3%. The Zacks Consensus Estimate for TTE’s 2023 earnings of $12.32 per share implies a year-over-year decline of 11.6%.
Devon Energy Corp. (DVN - Free Report) reported fourth-quarter 2022 earnings of $1.66 per share, which missed the Zacks Consensus Estimate of $1.75 by 5.14%.
The Zacks Consensus Estimate for DVN’s 2023 earnings of $7.49 per share implies a year-over-year decline of 150.7%. Devon Energy witnessed an average surprise of 3.5% in the last four reported quarters.
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Occidental's (OXY) Q4 Earnings and Revenues Miss Estimates
Occidental Petroleum Corporation (OXY - Free Report) reported fourth-quarter 2022 earnings of $1.61 per share, lagging the Zacks Consensus Estimate of $1.83 by 12%. Earnings in the fourth quarter were lower than our estimate of $1.76 per share. In the year-ago quarter, the company reported earnings of $1.48. Earnings improved year over year due to higher crude oil sales volumes.
GAAP earnings of Occidental in fourth-quarter 2022 were $1.74 per share compared with $1.37 in the year-ago quarter.
In 2022, earnings per share were $9.35, up 266.7% from last year's earnings of $2.55 per share.
Total Revenues
Occidental's total revenues were $8,326 million, which lagged the Zacks Consensus Estimate of $8,668 million by 3.9%. Total revenues were lower than our estimate of $8,794.1 million.
In 2022, revenues were $37.09 billion, up 128.1% year over year.
Occidental Petroleum Corporation Price, Consensus and EPS Surprise
Occidental Petroleum Corporation price-consensus-eps-surprise-chart | Occidental Petroleum Corporation Quote
Segmental Details
Oil and Gas revenues for the quarter were $6,296 million, up 111.5% year over year.
Chemical revenues for the quarter were $1,473 million, up 49.1% year over year.
Midstream & Marketing revenues for the quarter were $775 million, up 89% year over year.
Production & Sales
Occidental’s total production volume for the fourth quarter was 1,227 thousand barrels of oil equivalent per day (Mboe/d), which was within the company’s guidance of 1,200-1,260 Mboe/d. Strong production volumes were attributed to higher volumes from the Permian and International assets. Permian Resources’ production for the fourth quarter was 565 Mboe/d, which was within the guided range of 556-590 Mboe/d.
For the quarter under review, total sales volume was 1,230 Mboe/d, up 3.1% from 1,193 Mboe/d recorded in the year-ago period. The improvement was due to an increase in U.S. sales volume.
Realized Prices
The fourth quarter’s realized prices of crude oil improved 10.9% year over year to $83.64 per barrel on a worldwide basis. Realized natural gas liquids prices fell 27% from the prior-year quarter to $26.35 per barrel worldwide.
Natural gas prices decreased 3.6% from the year-ago quarter to $3.72 per thousand cubic feet worldwide.
Highlights of the Release
As of Dec 31, 2022, Occidental's worldwide proved reserves totaled 3.8 billion barrels of oil equivalent (BOE) compared with 3.5 billion BOE for the same period in the prior year.
Occidental’s total expenses for the reported quarter were $6,118 million, a tad lower year over year.
The company generated $2.6 billion in free cash flow in the fourth quarter and lowered its debts by more than $10.5 billion in 2022, which cut more than $400 million in interest expenses per year.
Interest expenses for the reported quarter were down 32.5% to $260 million from $449 million in the year-ago period.
In 2022, Occidental repurchased more than 47.7 million shares for $3 billion and again authorized a $3 billion share repurchase program.
Financial Position
As of Dec 31, 2022, Occidental had cash and cash equivalents of $984 million compared with $2,764 million as of Dec 31, 2021.
As of Dec 31, 2022, the company had long-term debt (net of current portion) of $19,670 million compared with $29,431 million as of Dec 31, 2021. The decrease in the company’s debt level was due to its effective debt management since the acquisition of Anadarko.
In 2022, cash flow from operations was $18,135 million, up from $11,679 million in the prior year.
Occidental’s total capital expenditure for 2022 was $4,497 million compared with $2,870 million invested in 2021.
Guidance
For the first quarter of 2023, OXY expects production of 1,160-1,200 Mboe/d and output from Permian Resources of 555-575 Mboe/d. Occidental expects first-quarter exploration expenses of $115 million.
For 2023, OXY expects production of 1,150-1,210 Mboe/d and output from Permian Resources of 560-590 Mboe/d. Occidental expects 2023 exploration expenses of $420 million.
OXY aims to repurchase shares worth $3 billion in 2023, which will further improve shareholders’ value.
Occidental has plans to invest $5.4-$6.2 billion in 2023 to further strengthen its operation.
Zacks Rank
Currently, Occidental carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Releases
CNX Resources Corporation (CNX - Free Report) reported fourth-quarter 2022 operating earnings of $1.64 per share, beating the Zacks Consensus Estimate of 57 cents by 188%.
CNX Resources’ long-term (three- to five-year) earnings growth is currently pegged at 20.7%. The Zacks Consensus Estimate for CNX’s 2023 earnings of $2.14 per share implies a year-over-year decline of 23.8%.
TotalEnergies SE (TTE - Free Report) has reported fourth-quarter 2022 operating earnings of $2.97 (€2.93) per share, beating the Zacks Consensus Estimate of $2.93 per share by 1.4%.
TTE’s long-term earnings growth is currently pegged at 9.3%. The Zacks Consensus Estimate for TTE’s 2023 earnings of $12.32 per share implies a year-over-year decline of 11.6%.
Devon Energy Corp. (DVN - Free Report) reported fourth-quarter 2022 earnings of $1.66 per share, which missed the Zacks Consensus Estimate of $1.75 by 5.14%.
The Zacks Consensus Estimate for DVN’s 2023 earnings of $7.49 per share implies a year-over-year decline of 150.7%. Devon Energy witnessed an average surprise of 3.5% in the last four reported quarters.