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Occidental (OXY) to Report Q4 Earnings: What's in Store?

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Occidental Petroleum Corporation (OXY - Free Report) is scheduled to release fourth-quarter 2023 results on Feb 14, after market close. In the last reported quarter, the company delivered an earnings surprise of 32.58%.

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

Factors to Consider

Occidental’s fourth-quarter result is likely to be boosted by strong performance from its Permian Basin assets, despite hailstorms in the Delaware Basin that caused power interruptions early in October.

The ongoing share repurchases are likely to have a positive impact on fourth-quarter earnings. Repayment of outstanding debts might have also reduced capital servicing costs and boosted margins.

However, Occidental’s domestic operation expenses are likely to have increased in fourth-quarter to $10.50/Boe compared with $10.20/Boe in the third quarter. Property damage from Permian storms and Gulf of Mexico asset maintenance might have resulted in this increase in expenses.

Q4 Expectations

Occidental expects total production of 1,206-1,246 thousand barrels of oil equivalent per day (MBOE/d) and 571-591 MBOE/d output from Permian Resources.

The Zacks Consensus Estimate for total production is pegged at 1,237.7 MBOE/D. For natural gas, the Zacks Consensus Estimate is pegged at 1,819 thousand cubic feet per day.

The Zacks Consensus Estimate for earnings per share and total revenues is pinned at 74 cents and $7.14 billion, suggesting a decline of 54.1% and 14.3% from the year-ago levels, 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.

Earnings ESP: Occidental’s Earnings ESP is +0.19%. 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

Investors can also consider the following players from the same sector that have the right combination of elements to beat on earnings in this reporting cycle.

Energy Transfer LP (ET - Free Report) is likely to deliver an earnings surprise when it posts fourth-quarter results on Feb 14, 2024, after market close. ET has an Earnings ESP of +0.69% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for ET’s fourth-quarter 2023 earnings implies an increase of 3.6% in the last 60 days.

Constellation Energy Corporation (CEG - Free Report) is likely to deliver an earnings surprise when it posts fourth-quarter numbers on Feb 27, 2024. CEG has an Earnings ESP of +2.05% and a Zacks Rank #2.

The Zacks Consensus Estimate for CEG’s fourth-quarter 2023 earnings implies an increase of 4.3% in the last 60 days.

ONEOK Inc. (OKE - Free Report) is likely to deliver an earnings surprise when it posts fourth-quarter figures on Feb 26, 2024, after market close. OKE has an Earnings ESP of +2.91% and flaunts a Zacks Rank #1.

The Zacks Consensus Estimate for OKE’s fourth-quarter 2023 earnings implies an increase of 4.3% in the last 60 days.

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

 

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