Back to top

Image: Bigstock

What's in Store for Occidental Petroleum (OXY) Q4 Earnings?

Read MoreHide Full Article

Occidental Petroleum Corporation (OXY - Free Report) is scheduled to release fourth-quarter 2020 results on Feb 16. In the last reported quarter, the company delivered a negative earnings surprise of 20%.

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

Factors to Consider

Occidental Petroleum’s fourth-quarter production is expected to have been driven by Permian and other domestic basin assets, offset by scheduled maintenance and seasonal weather contingencies in the Gulf of Mexico. Courtesy of the company’s cost-management initiatives, fourth-quarter operating and overhead costs are likely to have remained low.

Proper management and reduction of debts are likely to have further lowered capital servicing cost, and had a positive impact on earnings.

Expectations

The Zacks Consensus Estimate for total fourth-quarter production is pegged at 1,149 thousand barrels of oil equivalent (MBOE) per day. The company expects fourth-quarter production in the range of 1,105-1,155 MBOE/d and output from Permian Resources within 360-380 MBOE/d.

The Zacks Consensus Estimate for the bottom line for the fourth quarter is pegged at a loss of 53 cents per share, indicating a 76.7% 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 -3.66%.

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 #4 (Sell).

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.

Cactus Inc. (WHD - Free Report) is slated to release fourth-quarter 2020 numbers on Feb 24. It has an Earnings ESP of +32.35% and carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

PDC Energy Inc. is slated to release fourth-quarter 2020 numbers on Feb 25. It has an Earnings ESP of +10.77% and sports a Zacks Rank 1.

EOG Resources (EOG - Free Report) is set to release fourth-quarter earnings on Feb 26. It has an Earnings ESP of +4.83% and carries a Zacks Rank #2.

Zacks Top 10 Stocks for 2021

In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?

Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.

Access Zacks Top 10 Stocks for 2021 today >>


Unique Zacks Analysis of Your Chosen Ticker


Pick one free report - opportunity may be withdrawn at any time


Occidental Petroleum Corporation (OXY) - $25 value - yours FREE >>

EOG Resources, Inc. (EOG) - $25 value - yours FREE >>

Cactus, Inc. (WHD) - $25 value - yours FREE >>

Published in