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Why Is Occidental (OXY) Up 4.1% Since Last Earnings Report?
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A month has gone by since the last earnings report for Occidental Petroleum (OXY - Free Report) . Shares have added about 4.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Occidental due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Occidental Petroleum Corporation 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%.
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 suggested 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.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -22.56% due to these changes.
VGM Scores
At this time, Occidental has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Occidental has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Occidental is part of the Zacks Oil and Gas - Integrated - United States industry. Over the past month, Hess (HES - Free Report) , a stock from the same industry, has gained 1.8%. The company reported its results for the quarter ended December 2023 more than a month ago.
Hess reported revenues of $3.04 billion in the last reported quarter, representing a year-over-year change of -0.6%. EPS of $1.63 for the same period compares with $1.78 a year ago.
For the current quarter, Hess is expected to post earnings of $1.72 per share, indicating a change of +52.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.5% over the last 30 days.
Hess has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
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Why Is Occidental (OXY) Up 4.1% Since Last Earnings Report?
A month has gone by since the last earnings report for Occidental Petroleum (OXY - Free Report) . Shares have added about 4.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Occidental due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Occidental's Q4 Sales Beat, Earnings Meet Estimates
Occidental Petroleum Corporation 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%.
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 suggested 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.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -22.56% due to these changes.
VGM Scores
At this time, Occidental has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Occidental has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Occidental is part of the Zacks Oil and Gas - Integrated - United States industry. Over the past month, Hess (HES - Free Report) , a stock from the same industry, has gained 1.8%. The company reported its results for the quarter ended December 2023 more than a month ago.
Hess reported revenues of $3.04 billion in the last reported quarter, representing a year-over-year change of -0.6%. EPS of $1.63 for the same period compares with $1.78 a year ago.
For the current quarter, Hess is expected to post earnings of $1.72 per share, indicating a change of +52.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.5% over the last 30 days.
Hess has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.