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Occidental Petroleum (OXY) Q2 Loss Narrower-Than-Expected

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Occidental Petroleum Corporation (OXY - Free Report) is an integrated oil and gas company. This Houston, TX-based firm, together with its subsidiaries, operates in the U.S. and several international territories with considerable exposure in exploration and production activities.

Given the current commodity price environment, Occidental Petroleum is pursuing strategies to reduce activities in non-core operations in the Middle East and North Africa, while shifting focus toward opportunities to generate higher financial returns.

The company’s efforts to focus on its core oil and gas operations thus have resulted in strong production growth from Permian basin resources.  Moreover, systematic cost reduction strategies continue to help the company to counter the low price environment.

Estimate Trend & Surprise History

Investors should note that the second quarter Zacks Consensus Estimate is a loss of 20 cents per share, narrowed from a loss of 26 cents over the last 60 days.

Coming to the earnings surprise, Occidental Petroleum has surpassed the Zacks Consensus Estimate in 1 of the last four quarters, resulting in a negative average surprise of 48%.

Zacks Rank: Currently, Occidental Petroleum has a Zacks Rank #3 (Hold) but that could change following its second quarter 2016 earnings report which has just released. We have highlighted some of the key details from the just-released announcement below:

Earnings: Occidental Petroleum reported second quarter loss narrower than expected. Our consensus called for second-quarter loss of 20 cents, and the company reported loss of 18 cents.

OCCIDENTAL PET Price and EPS Surprise

OCCIDENTAL PET Price and EPS Surprise | OCCIDENTAL PET Quote

Revenue: Occidental Petroleum's revenue missed estimates in the second quarter. The company posted revenues of $2,558 million in the second quarter, compared to our consensus estimate of $2,700 million.

Key Stats: Average daily oil and gas production volumes in the quarter were 653 thousand barrels of oil equivalents (MBoe), down from 658 MBoe in the prior-year quarter.

Stock Price: It would be interesting to see how the market reacts to the earnings results during the trading session today.

Check back later for our full write up on this OXY earnings report later!

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