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Occidental (OXY) Q2 Earnings Surpass Estimates, Revenues Lag
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Occidental Petroleum Corporation (OXY - Free Report) reported second-quarter 2024 earnings of $1.03 per share, which surpassed the Zacks Consensus Estimate of 77 cents by 33.8%.
In the year-ago quarter, the company recorded earnings of 68 cents. Strong production volumes and improvement in oil and NGL prices resulted in a strong performance.
GAAP earnings were $1.03 compared with 63 cents in the year-ago quarter.
Total Revenues
Total revenues came in at $6.88 billion, which lagged the Zacks Consensus Estimate of $7.18 billion by 4.1%. However, the top line increased 2.2% year over year.
Occidental Petroleum Corporation Price, Consensus and EPS Surprise
Oil and Gas revenues totaled $5.46 billion in the reported quarter, up 10.7% year over year.
Chemical revenues amounted to $1.27 billion, down 7.3% year over year.
Midstream & Marketing revenues of $282 million plunged 54.2% year over year.
Production & Sales
The total production volume was 1,258 thousand barrels of oil equivalent per day (Mboe/d). The metric was within the company’s production guidance of 1,232-1,272 Mboe/d. Permian and Gulf of Mexico volumes exceeded the midpoint of the guided range, which contributed toward strong average daily production volumes.
Total sales volume came in at 1,260 Mboe/d, up 3.1% from the year-ago period.
Realized Prices
Realized prices of crude oil increased 8.6% year over year to $79.89 per barrel on a worldwide basis. Realized natural gas liquids prices improved 11.3% year over year to $21.23 per barrel globally.
Natural gas prices declined 60.3% year over year to 54 cents per thousand cubic feet.
Highlights of the Release
Occidental benefited from new wells and the usage of new technology that drove capital efficiency.
Interest and debt expenses increased 9.6% to $252 million from $230 million in the year-ago quarter.
Financial Position
As of Jun 30, 2024, Occidental had cash and cash equivalents of $1.84 billion compared with $1.4 billion as of Dec 31, 2023.
As of Jun 30, 2024, the company had long-term debt (net of current portion) of $18.39 billion against $18.5 billion as of Dec 31, 2023. The company retired nearly $0.4 billion in debt in the year-to-date period. Another $1.9 billion debt is scheduled to be repaid by the end of August, which will further strengthen OXY’s balance sheet.
The company generated nearly $2.4 billion of operating cash flow in second-quarter 2024.
Total capital expenditure was $1.77 billion compared with $1.64 billion in the year-ago period.
Guidance
For the third quarter of 2024, OXY expects production of 1,370-1,410 Mboe/d. Output from the Permian Resources segment is projected at 690-708 Mboe/d. Occidental expects production volumes for 2024 in the range of 1,290-1,340 Mboe/d with an expected contribution from Permian Resources in the band of 637-663 Mboe/d.
Exploration expenses are estimated to be $80 million for the third quarter and $325 million for 2024.
Devon Energy Corp. (DVN - Free Report) reported second-quarter 2024 earnings per share of $1.41, outpacing the Zacks Consensus Estimate of $1.29 by 9.3%.
The Zacks Consensus Estimate for DVN’s 2024 earnings is pegged at $5.41 per share, implying an increase of 4.2% in the past 60 days. The company delivered an average earnings surprise of 5.49% in the last four quarters.
Halliburton Company (HAL - Free Report) reported second-quarter 2024 adjusted net income per share of 80 cents, in line with the Zacks Consensus Estimate and above the year-ago quarter’s profit of 77 cents (adjusted).
HAL’s long-term earnings growth rate is currently pinned at 9.33%. The Zacks Consensus Estimate for 2024 EPS is pegged at $3.18, indicating no change in the last seven days.
Chevron Corporation (CVX - Free Report) reported adjusted second-quarter earnings per share of $2.55, lagging the Zacks Consensus Estimate of $2.88 and declining from the year-ago adjusted profit of $3.08.
CVX’s long-term earnings growth rate is currently pinned at 5%. The Zacks Consensus Estimate for 2024 EPS is pegged at $12.3, indicating a decline of 1.2% in the last seven days.
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Occidental (OXY) Q2 Earnings Surpass Estimates, Revenues Lag
Occidental Petroleum Corporation (OXY - Free Report) reported second-quarter 2024 earnings of $1.03 per share, which surpassed the Zacks Consensus Estimate of 77 cents by 33.8%.
In the year-ago quarter, the company recorded earnings of 68 cents. Strong production volumes and improvement in oil and NGL prices resulted in a strong performance.
GAAP earnings were $1.03 compared with 63 cents in the year-ago quarter.
Total Revenues
Total revenues came in at $6.88 billion, which lagged the Zacks Consensus Estimate of $7.18 billion by 4.1%. However, the top line increased 2.2% 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 totaled $5.46 billion in the reported quarter, up 10.7% year over year.
Chemical revenues amounted to $1.27 billion, down 7.3% year over year.
Midstream & Marketing revenues of $282 million plunged 54.2% year over year.
Production & Sales
The total production volume was 1,258 thousand barrels of oil equivalent per day (Mboe/d). The metric was within the company’s production guidance of 1,232-1,272 Mboe/d. Permian and Gulf of Mexico volumes exceeded the midpoint of the guided range, which contributed toward strong average daily production volumes.
Total sales volume came in at 1,260 Mboe/d, up 3.1% from the year-ago period.
Realized Prices
Realized prices of crude oil increased 8.6% year over year to $79.89 per barrel on a worldwide basis. Realized natural gas liquids prices improved 11.3% year over year to $21.23 per barrel globally.
Natural gas prices declined 60.3% year over year to 54 cents per thousand cubic feet.
Highlights of the Release
Occidental benefited from new wells and the usage of new technology that drove capital efficiency.
Interest and debt expenses increased 9.6% to $252 million from $230 million in the year-ago quarter.
Financial Position
As of Jun 30, 2024, Occidental had cash and cash equivalents of $1.84 billion compared with $1.4 billion as of Dec 31, 2023.
As of Jun 30, 2024, the company had long-term debt (net of current portion) of $18.39 billion against $18.5 billion as of Dec 31, 2023. The company retired nearly $0.4 billion in debt in the year-to-date period. Another $1.9 billion debt is scheduled to be repaid by the end of August, which will further strengthen OXY’s balance sheet.
The company generated nearly $2.4 billion of operating cash flow in second-quarter 2024.
Total capital expenditure was $1.77 billion compared with $1.64 billion in the year-ago period.
Guidance
For the third quarter of 2024, OXY expects production of 1,370-1,410 Mboe/d. Output from the Permian Resources segment is projected at 690-708 Mboe/d. Occidental expects production volumes for 2024 in the range of 1,290-1,340 Mboe/d with an expected contribution from Permian Resources in the band of 637-663 Mboe/d.
Exploration expenses are estimated to be $80 million for the third quarter and $325 million for 2024.
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
Devon Energy Corp. (DVN - Free Report) reported second-quarter 2024 earnings per share of $1.41, outpacing the Zacks Consensus Estimate of $1.29 by 9.3%.
The Zacks Consensus Estimate for DVN’s 2024 earnings is pegged at $5.41 per share, implying an increase of 4.2% in the past 60 days. The company delivered an average earnings surprise of 5.49% in the last four quarters.
Halliburton Company (HAL - Free Report) reported second-quarter 2024 adjusted net income per share of 80 cents, in line with the Zacks Consensus Estimate and above the year-ago quarter’s profit of 77 cents (adjusted).
HAL’s long-term earnings growth rate is currently pinned at 9.33%. The Zacks Consensus Estimate for 2024 EPS is pegged at $3.18, indicating no change in the last seven days.
Chevron Corporation (CVX - Free Report) reported adjusted second-quarter earnings per share of $2.55, lagging the Zacks Consensus Estimate of $2.88 and declining from the year-ago adjusted profit of $3.08.
CVX’s long-term earnings growth rate is currently pinned at 5%. The Zacks Consensus Estimate for 2024 EPS is pegged at $12.3, indicating a decline of 1.2% in the last seven days.