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Occidental Petroleum (OXY) Down 8.2% Since Earnings Report: Can It Rebound?

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It has been about a month since the last earnings report for Occidental Petroleum Corporation (OXY - Free Report) . Shares have lost about 8.2% in that time frame, underperforming the market.

Will the recent negative trend continue leading up to the stock’s next earnings release, or is it due for a breakout? 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 Q4 Loss Wider, Revenues Beat

Occidental Petroleum reported fourth-quarter 2016 loss of $0.13 per share, wider than the Zacks Consensus Estimate of a loss of $0.03. In the year-ago quarter, the company had posted a loss of $0.17.

Full-year 2016 loss came in at $1.02 per share, wider than the Zacks Consensus Estimate of a loss of $0.90. In the year-ago period, the company had reported earnings of $0.12.

Total Revenue

Occidental Petroleum's total revenue came in at $2,826 million, marginally beating the Zacks Consensus Estimate of $2,806 million. Revenues fell marginally from $2,843 million a year ago, primarily due to lower contribution from Oil and Gas (4.3%).

Full-year revenues came in at $10,398 million, missing the Zacks Consensus Estimate of $10,670 million by 2.6%. Revenues also fell from the prior-year tally of $12,699 million by 18.1%.

Quarterly Highlights

Occidental Petroleum’s average daily net oil, liquids and gas production volume decreased 10.7% year over year to 607,000 barrels of oil equivalents per day (Boe/d).

Realized Prices

Realized prices for worldwide crude oil increased 17% year over year to $45.08 per barrel.

Worldwide realized NGL prices increased 31% to $18.36 per barrel.

Natural gas prices were up 42.4% to $1.88 per thousand cubic feet.

Financial Position

As of Dec 31, 2016, Occidental Petroleum had cash and cash equivalents of $2,233 million compared with $3,201 million as of Dec 31, 2015.

As of Dec 31, 2016, Occidental Petroleum had long-term debt (net of current portion) of $9,819 million compared with $6,855 million as of Dec 31, 2015.

In the reported quarter, the company’s cash from operations was $921 million, up 8.2% from $851 million in the prior-year period.

Occidental Petroleum’s total capital expenditure was $891 million in the quarter under review, down 23.9% from $1,170 million a year ago.

How Have Estimates Been Moving Since Then?

Following the release, investors have witnessed a downward trend in fresh estimates. There has been one downward revision for the current quarter.

VGM Scores

 

At this time, Occidental Petroleum's stock has a subpar Growth Score of 'D', while it is lagging a lot on the momentum front with an 'F'. Charting a somewhat similar path, the stock was allocated a grade of 'F' on the value side, putting it in the fifth quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.

Our style scores indicate investors will probably be better served looking elsewhere.

Outlook

The stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.


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