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Occidental (OXY) to Post Q3 Earnings: What's in the Offing?

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Occidental Petroleum Corporation (OXY - Free Report) is scheduled to release third-quarter 2020 results on Nov 9. In the last reported quarter, the company delivered a negative earnings surprise of 6.02%.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors to Consider

Occidental’s third-quarter production is expected to have been driven by its assets in the Permian and other domestic basins, offset by scheduled maintenance and seasonal contingencies for weather in the Gulf of Mexico, the impact of higher prices on production-sharing contracts, selective ethane rejection in the DJ Basin, as well as declining base production across all its assets.

It slashed the capital expenditure plan for 2020 and resorted to additional cost-saving measures to preserve liquidity, which are expected to get reflected in third-quarter results.

Expectations

The Zacks Consensus Estimate for total third-quarter production is pegged at 1,255 thousand barrels of oil equivalent (MBOE) per day. The company expects third-quarter production in the range of 1,200-1,250 MBOE/d.

The Zacks Consensus Estimate for the bottom line for the third quarter is pegged at a loss of 70 cents per share, indicating a 736.4% decline from the prior-year reported figure.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for Occidental this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here as you see below.

Earnings ESP: The company’s Earnings ESP is 0.00%.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Occidental currently carries a Zacks Rank #3.

Stocks to Consider

Here are a few companies worth considering from the same sector that have the right combination of elements to beat on earnings in the upcoming releases.

Pacific Ethanol, Inc. is set to release third-quarter results on Nov 9. It has an Earnings ESP of +35.00% and sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Peabody Energy (BTU - Free Report) is set to release third-quarter results on Nov 9. It has an Earnings ESP of +16.28% and a Zacks Rank of 3.

Oil Energy Release

Chevron Corporation (CVX - Free Report) reported earnings of 11 cents per share for the third quarter, which beat the consensus estimate by 137.9%.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

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Chevron Corporation (CVX) - free report >>

Peabody Energy Corporation (BTU) - free report >>

Occidental Petroleum Corporation (OXY) - free report >>

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