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Occidental (OXY) Q1 Loss Narrower Than Expected, Sales Top

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Occidental Petroleum Corporation (OXY - Free Report) reported first-quarter 2021 loss of 15 cents per share, narrower than the Zacks Consensus Estimate of a loss of 33 cents. The company incurred a loss of 67 cents per share in the prior-year quarter.

Total Revenues

Occidental's total revenues were $5,293 million, which surpassed the Zacks Consensus Estimate of $4,923 million by 7.5%. The top line, however, decreased 19.9% from the year-ago quarter. The year-over-year decline was due to lower contribution from the Oil &Gas segment.

Segment Details

Oil and Gas revenues for the quarter were $3,664 million, down 27.6% year over year.

Chemical revenues for the quarter were $1,088 million, up 13.1% year over year.

Midstream & Marketing revenues for the quarter were $807 million, down 2.2% year over year.

Production & Sales

Occidental’s total production volume for the first quarter was 1,117 thousand barrels of oil equivalent per day (Mboe/d), which exceeded the upper end of the guided range of 1,085-1,115 Mboe/d. Strong production volumes were attributed to higher volumes from the Permian Resources region. Permian Resources production for the first quarter was 457 Mboe/d, which was near the higher end of the guided range of 450-460 Mboe/d.

For the quarter under review, total sales volume was 1,113 Mboe/d, down 22.3% from 1,432 Mboe/d recorded in the year-ago period. The decline was due to drop in U.S. and International sales volumes.

Realized Prices

First-quarter realized prices for crude oil improved 18.5% year over year to $55.65 per barrel on a worldwide basis. Worldwide realized natural gas liquids prices improved 79.1% from the prior-year quarter to $23.44 per barrel. Worldwide natural gas prices increased 80.1% from the year-ago quarter to $2.36 per thousand cubic feet.

Highlights of the Release

Occidental’s total expenses for the reported quarter were $5,684 million, down 28.7 year over year.

Out of its planned divestiture of $10.2 billion, the company has already completed $8.7 billion and utilized a major portion of the proceeds to lower outstanding debts.

Interest expenses for the reported quarter were up 12.2% to $395 million from $352 million in the year-ago period.

Financial Position

As of Mar 31, 2021, Occidental had cash and cash equivalents of $2,270 million compared with $2,008 million on Dec 31, 2020.

As of Mar 31, 2021, the company had a long-term debt (net of current portion) of $35,466 million compared with $35,745 million on Dec 31, 2020. The decrease in debt level was due to effective management of debt since the acquisition of Anadarko.

For first-quarter 2021, cash from operations was $2,135 million, up from $1,484 million in the prior-year period.

For first-quarter 2021, Occidental’s total capital expenditure was 579 million compared with $1,300 million invested in the year-ago period.

Guidance

For second-quarter 2021, it expects production in the range of 1,140-1,170 Mboe/d and output from Permian Resources in the band of 490-500 Mboe/d. The company expects exploration expenses for the second quarter to be $70 million.

For 2021, Occidental expects production to be 1,140 Mboe/d and output from Permian Resources to be 485 Mboe/d. The company expects exploration expenses for 2021 to be $215 million.

It expects to invest $2.9 billion in 2021 to further strengthen the existing operations. A total of $2.53 billion was invested in 2020. Out of the 2021 projected capital expenditure, $1.2 billion will be invested in the Permian region to bring new wells online.

Zacks Rank

Currently, Occidental carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Releases

Devon Energy Corp. (DVN - Free Report) reported first-quarter 2021 adjusted earnings of 45 cents, beating the Zacks Consensus Estimate of 35 cents per share by 28.6%.

Murphy Oil Corporation (MUR - Free Report) posted first-quarter 2021 adjusted net income of 6 cents per share. The Zacks Consensus Estimate was of a loss of 16 cents.

CNX Resources Corporation (CNX - Free Report) reported first-quarter 2021 adjusted earnings of 36 cents per share, which surpassed the Zacks Consensus Estimate of 28 cents by 28.6%.

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