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Occidental (OXY) to Post Q4 Earnings: What's in the Offing?

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Occidental Petroleum Corporation (OXY - Free Report) is scheduled to release fourth-quarter 2021 results on Feb 24. In the last reported quarter, the company delivered an earnings surprise of 33.9%.

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

Factors to Consider

Occidental’s fourth-quarter earnings are expected to have been driven by strong production from domestic assets. The improving commodity prices are likely to have a positive impact on OXY’s fourth-quarter results.

Excellent debt management through repayment and refinancing is likely to have reduced Occidental’s capital servicing expenses in the fourth quarter.

Expectations

The Zacks Consensus Estimate for fourth-quarter crude oil production is pegged at 605 thousand barrels of oil per day. The company expects total production in the range of 1,125-1,155 thousand barrels of oil equivalent per day (MBOE/d) and output from Permian Resources within 472-482 MBOE/d.

The Zacks Consensus Estimate for the bottom line for the fourth quarter is pegged at $1.08 per share, indicating a 238.5% improvement from the prior-year reported number.

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

Occidental Petroleum Corporation Price and EPS Surprise

Occidental Petroleum Corporation Price and EPS Surprise

Occidental Petroleum Corporation price-eps-surprise | Occidental Petroleum Corporation Quote

Earnings ESP: Occidental’s Earnings ESP is -0.49%.

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 #1.

Stocks to Consider

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

Diamondback Energy, Inc. (FANG - Free Report) is likely to come up with an earnings beat when it reports fourth-quarter results on Feb 22 after the market close. Diamondback Energy has an Earnings ESP of +0.91% and a Zacks Rank of #3 at present. The Zacks Consensus Estimate for FANG’s 2022 EPS indicates 71.4% year-over-year growth.

Sunnova Energy International Inc. (NOVA - Free Report) is likely to come up with an earnings beat when it reports fourth-quarter results on Feb 23 after the market close. Sunnova Energy has an Earnings ESP of +0.56% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for NOVA’s 2022 EPS has indicates13.2% year-over-year growth.

Coterra Energy Inc. (CTRA - Free Report) is likely to come up with an earnings beat when it reports fourth-quarter results on Feb 23 after the market close. Coterra Energy has an Earnings ESP of +1.21% and a Zacks Rank of #3 at present. The Zacks Consensus Estimate for CTRA’s 2021 EPS indicates 790.7% year-over-year growth.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.