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Why Is Occidental (OXY) Down 6% Since Last Earnings Report?

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It has been about a month since the last earnings report for Occidental Petroleum (OXY - Free Report) . Shares have lost about 6% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Occidental due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Occidental Petroleum Q1 Earnings Surpass, Revenues Lag Estimates

Occidental Petroleum Corporation reported first-quarter 2024 earnings of 65 cents per share, which surpassed the Zacks Consensus Estimate of 56 cents by 16.1%. In the year-ago quarter, the company recorded earnings of $1.09.

GAAP earnings was 75 cents compared with $1 in the year-ago quarter.

Total Revenues

Total revenues came in at $6.01 billion, which lagged the Zacks Consensus Estimate of $6.66 billion by 9.8%. The top line declined 17.2% year over year.

Segmental Details

Oil and Gas revenues totaled $4.9 billion in the reported quarter, down 7.7% year over year.

Chemical revenues amounted to $1.18 billion, down 15.6% year over year.

Midstream & Marketing revenues of $99 million plunged 86.8% year over year.

Production & Sales

Total production volume was 1,172 thousand barrels of oil equivalent per day (Mboe/d). The metric was within the company’s guidance of 1,155-1,195 Mboe/d. Rockies & Other Domestic production volumes exceed guidance, while Permian and International average daily production volumes were within guidance.

Total sales volume came in at 1,175 Mboe/d, down 3.2% from the year-ago period.

Realized Prices

Realized prices of crude oil increased 2.4% year over year to $76.04 per barrel on a worldwide basis. Realized natural gas liquids prices fell 9.3% year over year to $22.14 per barrel globally.

Natural gas prices declined 39.1% year over year to $1.68 per thousand cubic feet.

Highlights of the Release

Occidental Petroleum benefited from new wells and usage of new technology that drove capital efficiency. The new wells that are planned to come online in Permian and Rockies regions are going to boost production volumes.

The company generated $2.2 billion of operating cash flow during first-quarter 2024.

Interest and debt expenses increased 19.3% to $284 million from $238 million in the year-ago quarter.

Financial Position

As of Mar 31, 2024, Occidental Petroleum had cash and cash equivalents of $1.3 billion compared with $1.4 billion as of Dec 31, 2023.

As of Mar 31, 2024, the company had long-term debt (net of current portion) of $18.5 billion compared with $18.5 billion as of Dec 31, 2023.

Cash flow from operations amounted to $2 billion compared with $2.87 billion in the year-ago period.

Total capital expenditure was $1.78 billion compared with $1.46 billion in the year-ago period.


For the second quarter of 2024, OXY expects production of 1,232-1,272 Mboe/d. Output from the Permian Resources segment is projected at 574-592 Mboe/d.  Occidental Petroleum reiterated its production volumes for 2024 in the range of 1,220-1280 Mboe/d, with expected contribution from Permian Resources in the range of 569-599 Mboe/d.

Exploration expenses are estimated to be $100 million for the second quarter and $325 million for 2024.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision flatlined during the past month.

VGM Scores

At this time, Occidental has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.


Occidental has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Occidental is part of the Zacks Oil and Gas - Integrated - United States industry. Over the past month, Antero Midstream Corporation (AM - Free Report) , a stock from the same industry, has gained 2%. The company reported its results for the quarter ended March 2024 more than a month ago.

Antero Midstream reported revenues of $279.05 million in the last reported quarter, representing a year-over-year change of +7.5%. EPS of $0.24 for the same period compares with $0.21 a year ago.

Antero Midstream is expected to post earnings of $0.23 per share for the current quarter, representing a year-over-year change of +4.6%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #5 (Strong Sell) for Antero Midstream. Also, the stock has a VGM Score of C.

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