Back to top

Image: Bigstock

Occidental's (OXY) Q4 Sales Beat, Earnings Meet Estimates

Read MoreHide Full Article

Occidental Petroleum Corporation (OXY - Free Report) reported fourth-quarter 2023 earnings of 74 cents per share, which was on par with the Zacks Consensus Estimate. In the year-ago quarter, the company recorded earnings of $1.61.

2023 earnings were $3.70 compared with $9.35 in the prior-year period.

Total Revenues

Occidental's total revenues came in at $7.52 billion, which surpassed the Zacks Consensus Estimate of $7.13 billion by 5.5%. The top line declined 9.6% year over year.

Occidental's 2023 total revenues came in at $28.9 billion, which lagged 2022 total revenues of $37.1 billion by 22%.

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 $5.4 billion in the reported quarter, down 13.9% year over year.

Chemical revenues amounted to $1.23 billion, down 16.4% year over year.

Midstream & Marketing revenues came in at $0.6 billion, down 18.5% year over year.

Production & Sales

Occidental’s total production volume was 1,234 thousand barrels of oil equivalent per day (Mboe/d), within the company’s guidance of 1,206-1,246 Mboe/d. Rockies & Other Domestic and International average daily production volumes exceeded guidance, while a third-party outage in the eastern Gulf of Mexico offset some positives.

Total sales volume came in at 1,230 Mboe/d, on par with the year-ago period. The improvement in U.S. sales volume was offset by a decline in International sales volume.

Realized Prices

Realized prices of crude oil decreased 5.7% year over year to $78.85 per barrel on a worldwide basis. Realized natural gas liquids prices fell 20.6% year over year to $20.93 per barrel globally.

Natural gas prices declined 49.5% year over year to $1.88 per thousand cubic feet.

Highlights of the Release

Occidental’s total expenses in the reported quarter were $6.11 billion, down 0.1% from $6.12 billion in the year-ago period.

The company generated $5.5 billion of free cash flow during 2023.

Interest expenses decreased 5% to $247 million from $260 million in the year-ago quarter.

Occidental repurchased shares worth $1.8 billion in 2023.

Financial Position

As of Dec 31, 2023, Occidental had cash and cash equivalents of $1.4 billion compared with $984 million as of Dec 31, 2022.

As of Dec 31, 2023, the company had long-term debt (net of current portion) of $18.5 billion compared with $19.7 billion 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 $11.6 billion in 2023 compared with $18.1 billion a year ago.

Total capital expenditure was $6.3 billion in 2023 compared with $4.5 billion in the year-ago period.

Guidance

For the first quarter of 2024, OXY expects production of 1,155-1,195 Mboe/d. Output from the Permian Resources segment is projected at 551-571 Mboe/d.  Production volumes for 2024 are sugested in the range of 1,220-1280 Mboe/d, with expected contribution from Permian Resources in the range of 569-599 Mboe/d.

Exploration expenses are estimated at $95 million for the first quarter and $325 million for 2024.

Zacks Rank

Occidental currently carries a Zacks Rank #4 (Sell).

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) fourth-quarter 2023 adjusted earnings per limited partner unit of 72 cents beat the Zacks Consensus Estimate of 66 cents. The bottom line also increased from the year-ago quarter’s level of 65 cents.

The Zacks Consensus Estimate for EPD’s 2024 earnings is pegged at $2.63 per unit, implying an increase of 3.95% from the year-ago levels. The stock delivered an average earnings surprise of 1.04% in the last four quarters.

Murphy Oil Corporation (MUR - Free Report) reported fourth-quarter 2023 adjusted net earnings of 90 cents per share, missing the Zacks Consensus Estimate of $1.03 by 12.6%. The bottom line also declined 18.2% from the year-ago quarter’s earnings of $1.10.

The Zacks Consensus Estimate for MUR’s 2024 earnings is pegged at $4.28 per share, implying a decrease of 5.3% from the prior-year levels. The stock delivered an average earnings surprise of 9.97% in the last four quarters.

CNX Resources Corporation (CNX - Free Report) reported fourth-quarter 2023 operating earnings of 68 cents per share, which beat the Zacks Consensus Estimate of 27 cents by 151.9%. In the year-ago quarter, the company reported earnings of $1.64 per share.

The Zacks Consensus Estimate for CNX’s 2024 earnings is pegged at $1.52 per share, implying a decrease of 20% from the year-ago actuals. The stock delivered an average earnings surprise of 58.6% in the last four quarters.

Published in