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Occidental's (OXY) Q1 Earnings and Revenues Beat Estimates

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Occidental Petroleum Corporation (OXY - Free Report) reported first-quarter 2022 earnings of $2.12 per share, beating the Zacks Consensus Estimate of $1.97 by 7.6%. Earnings improved year over year due to an increase in operating efficiencies and commodity prices.

GAAP earnings of Occidental in first-quarter 2022 were $4.65 per share compared with $1.37 in the year-ago quarter.

Total Revenues

Occidental's total revenues were $8,533 million, which surpassed the Zacks Consensus Estimate of $7,960 million by 7.2%. The top line also improved 55.7% from the year-ago quarter. The year-over-year improvement was due to a rise in contribution from all its segments.

 

Segment Details

Oil and Gas revenues for the quarter were $6,075 million, up 65.8% year over year.

Chemical revenues for the quarter were $1,684 million, up 54.8% year over year.

Midstream & Marketing revenues for the quarter were $882 million, up 9.3% year over year.

Production & Sales

Occidental’s total production volume for the first quarter was 1,079 thousand barrels of oil equivalent per day (Mboe/d), which was within the guided range of 1,070-1,090 Mboe/d. Strong production volumes were attributed to higher volumes from the Rockies and Other Domestic assets. Permian Resources’ production for the first quarter was 472 Mboe/d, which was near the upper end of the guided range of 465-473 Mboe/d.

For the quarter under review, total sales volume was 1,074 Mboe/d, down 3.5% from 1,113 Mboe/d recorded in the year-ago period. The decline was due to a drop in U.S. and international sales volume.

Realized Prices

First-quarter realized prices of crude oil improved 72.1% year over year to $91.91 per barrel on a worldwide basis. Realized natural gas liquids prices also improved 68.9% from the prior-year quarter to $39.61 per barrel, worldwide.

Natural gas prices increased 55.1% from the year-ago quarter to $3.66 per thousand cubic feet, worldwide. The company benefited from a worldwide improvement in commodity prices.

Highlights of the Release

Occidental’s total expenses for the reported quarter were $5,774 million, up 1.6% year over year.

Occidental generated $3.3 billion free cash flow in the first quarter and repaid debts worth $3.3 billion, further strengthening the balance sheet.

Interest expenses for the reported quarter were down 6.1% to $371 million from $395 million in the year-ago period.

Financial Position

As of Mar 31, 2022, Occidental had cash and cash equivalents of $1,909 million compared with $2,764 million as of Dec 31, 2021.

As of Mar 31, 2022, the company had long-term debt (net of current portion) of $25,865 million compared with $29,431 million as of Dec 31, 2021. The decrease in debt-level was due to effective management of debt since the acquisition of Anadarko.

For first-quarter 2022, cash flow from operations was $4,178 million, up from $2,135 million in the prior-year period.

Occidental’s total capital expenditure for first-quarter 2022 was $858 million compared with $579 million invested in the year-ago period.

Guidance

For second-quarter 2022, OXY expects production in the range of 1,130-1,160 Mboe/d and output from Permian Resources in the band of 488-498 Mboe/d. Occidental expects exploration expenses of $50 million.

For 2022, OXY expects production in the range of 1,140-1,170 Mboe/d and output from Permian Resources in the band of 527-537 Mboe/d.

Zacks Rank

Currently, Occidental has a Zacks Rank #2 (Buy).

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

Other Releases

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The Zacks Consensus Estimate for DVN’s 2022 earnings implies year-over-year growth of 140.5%. Devon Energy reported an average surprise of 13.4% in the last four reported quarters.

CNX Resources Corporation (CNX - Free Report) reported first-quarter 2022 adjusted earnings of 79 cents per share, which surpassed the Zacks Consensus Estimate of 60 cents by 31.7%.

CNX Resources’ long-term (three to five years) earnings growth is currently pegged at 19.7%. The Zacks Consensus Estimate for CNX’s 2022 earnings implies year-over-year growth of 72.1%.

Murphy Oil Corporation (MUR - Free Report) posted first-quarter 2022 adjusted net income of 73 cents per share, beating the Zacks Consensus Estimate of 59 cents by 23.7%.

The Zacks Consensus Estimate for MUR’s 2022 earnings implies year-over-year growth of nearly 283%. Murphy Oil reported an average surprise of 49.9% in the last four reported quarters.