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Occidental's (OXY) Q3 Earnings and Revenues Beat Estimates

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Occidental Petroleum Corporation (OXY - Free Report) reported third-quarter 2023 earnings of $1.18 per share, which surpassed the Zacks Consensus Estimate of 89 cents by 32.6%. In the year-ago quarter, the company recorded earnings of $2.44 per share.

GAAP earnings in the quarter were $1.20 per share compared with $2.52 in the prior-year period.

Total Revenues

Occidental's total revenues came in at $7,400 million, which surpassed the Zacks Consensus Estimate of $7,195 million by 2.8%. The top line declined 22.1% from the year-ago quarter’s figure of $9,501 million.

Occidental Petroleum Corporation Price, Consensus and EPS Surprise

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 totaled $5,594 million in the reported quarter, down 21.2% year over year.

Chemical revenues amounted to $1,309 million, down 22.6%.

Midstream & Marketing revenues came in at $552 million, down 45.1% year over year.

Production & Sales

Occidental’s total production volume was 1,220 thousand barrels of oil equivalent per day (Mboe/d), higher than the company’s guidance of 1,166-1,206 Mboe/d. Such an outperformance can be attributed to higher volumes from the Permian segments. Permian’s production for the third quarter totaled 588 Mboe/d, toward the higher end of the guided range of 568-588 Mboe/d.

Total sales volume came in at 1,222 Mboe/d, up 3.6% from 1,179 Mboe/d in the year-ago period. The improvement was due to an increase in U.S. sales volume. Out of the total sales volume, 997 Mboe/d came from domestic sales, which was up 5.6% year over year.

Realized Prices

Realized prices of crude oil decreased 14.9% year over year to $80.7 per barrel on a worldwide basis. Realized natural gas liquids prices fell 40.3% to $21.04 per barrel globally.

Natural gas prices declined 65.9% from the year-ago quarter’s number to $1.92 per thousand cubic feet.

Highlights of the Release

Occidental’s total expenses in the reported quarter were $5,697 million, down 6.9% from $6,119 million in the year-ago period.

The company generated $1.7 billion in free cash flow during the third quarter.

Interest expenses decreased 19.3% to $230 million from $285 million in the year-ago quarter.

Occidental repurchased shares worth $600 million. Through systematic buyback OXY has utilized 60% of its $3 billion share repurchase program.

Financial Position

As of Sep 30, 2023, Occidental had cash and cash equivalents of $611 million compared with $984 million as of Dec 31, 2022.

As of Sep 30, 2023, the company had long-term debt (net of current portion) of $18,597 million compared with $19,670 million as of Dec 31, 2022. The decrease in the company’s debt level was due to its effective debt management since the acquisition of Anadarko.

Cash flow from operations amounted to $9,069 million in the first nine months of 2023 compared with $12,835 million a year ago.

Total capital expenditure was $4,726 million in the first nine months compared with $2,977 million in the year-ago period.

Guidance

For the fourth quarter of 2023, OXY expects production of 1,206-1,246 Mboe/d. Output from the Permian Resources segment is projected at 571-591 Mboe/d. Our model projects fourth-quarter total production of 1,226.2 Mboe/d.

Exploration expenses are estimated at $150 million for the fourth quarter.

Zacks Rank

Occidental currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Releases

Enterprise Products Partners LP’s (EPD - Free Report) third-quarter 2023 adjusted earnings per limited partner unit of 60 cents missed the Zacks Consensus Estimate of 63 cents. The bottom line also declined from the year-ago quarter’s level of 63 cents.

The Zacks Consensus Estimate for EPD’s 2023 earnings stands at $2.51 per share, implying a year-over-year decrease of 0.4%. The stock delivered an average earnings surprise of 0.85% in the last four quarters.

Murphy Oil Corporation (MUR - Free Report) reported third-quarter 2023 adjusted net earnings of $1.59 per share, beating the Zacks Consensus Estimate of $1.34 by 18.7%. The bottom line declined 13.6% from the year-ago quarter’s earnings of $1.84.

The Zacks Consensus Estimate for MUR’s 2023 earnings stands at $4.89 per share, implying a year-over-year decrease of 12.5%. The stock delivered an average earnings surprise of 14.04% in the last four quarters.

CNX Resources Corporation (CNX - Free Report) reported third-quarter 2023 operating earnings of 35 cents per share, which beat the Zacks Consensus Estimate of 26 cents by 34.6%. In the year-ago quarter, the company reported a loss of 54 cents per share.

The Zacks Consensus Estimate for CNX’s 2023 earnings stands at $1.53 per share, implying a year-over-year decrease of 45.6%. The stock delivered an average earnings surprise of 67.61% in the last four quarters.


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