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Occidental Petroleum (OXY) to Post Q4 Earnings: What to Expect

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Occidental Petroleum Corporation (OXY - Free Report) is scheduled to release fourth-quarter 2022 results on Feb 27. In the last reported quarter, the company delivered a negative surprise of 1.6%.

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 its domestic assets. Lower-than-expected production from the Permian Basin in fourth-quarter is anticipated to be more than offset by strong production in the Gulf of Mexico and Rockies region.

Occidental’s fourth-quarter earnings are expected to have benefited from the ongoing share repurchases. The repayment of outstanding debts would also reduce capital servicing costs and boost margins.

Fourth-quarter performance is likely to have benefited from a strong contribution from OxyChem. Fundamentals in the caustic soda market also remain supportive.

Expectations

The Zacks Consensus Estimate for fourth-quarter crude oil production is pegged at 656 thousand barrels of oil per day. For natural gas, the Zacks Consensus Estimate for the quarter is pegged at 1,754 thousand cubic feet per day. Occidental expects total production of 1,200-1,260 thousand barrels of oil equivalent per day (MBOE/d) and 556-590 MBOE/d output from Permian Resources.

The Zacks Consensus Estimate for fourth-quarter earnings per share and total revenues are pegged at $1.83 per share and $8.65 billion, reflecting a year-over-year increase of 23.7% and 8%, respectively.

What Our Quantitative Model Predicts

Our proven model predicts 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 the case here, as you will see below. You can see the complete list of today’s Zacks #1 Rank stocks here.

 


Earnings ESP: Occidental’s Earnings ESP is +0.96%.

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.

Other Stocks to Consider

Here are a few companies from the energy space that also have the right combination of elements to beat on earnings in the upcoming releases.

Sempra Energy (SRE - Free Report) is likely to come up with an earnings beat when it reports fourth-quarter results on Feb 28, before market open. It has an Earnings ESP of +1.01% and a Zacks Rank #3 at present.

SRE’s long-term (three- to five-year) earnings growth is pegged at 5.71%. The Zacks Consensus Estimate for 2023 EPS is $8.96, implying a year-over-year increase of 0.7%.

Aemetis, Inc. (AMTX - Free Report) is likely to come up with an earnings beat when it reports fourth-quarter results on Mar 9. It has an Earnings ESP of +43.57% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for AMTX’s 2023 EPS is (0.67) cents, implying a year-over-year increase of 38.3%.

Peer Performance

Devon Energy Corp. (DVN - Free Report) reported fourth-quarter 2022 earnings of $1.66 per share, which missed the Zacks Consensus Estimate of $1.75 by 5.14%.

Devon’s long-term earnings growth is pegged at 51.5%. The Zacks Consensus Estimate for 2023 EPS is $7.62, implying a year-over-year decrease of 8.3%.

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

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