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Occidental Petroleum's Q3 Earnings Beat, Revenues Lag Estimates

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Occidental Petroleum Corporation (OXY - Free Report) reported third-quarter 2024 earnings of $1 per share, which surpassed the Zacks Consensus Estimate of 80 cents by 25%. In the year-ago quarter, the company recorded earnings of $1.18 per share.
 
GAAP earnings were 98 cents per share compared with $1.20 in the year-ago quarter.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Total Revenues of OXY

Total revenues was $7.15 billion, which lagged the Zacks Consensus Estimate of $7.40 billion by 3.4%. The top line decreased 3.4% year over year due to lower contributions from its Chemical and Midstream & Marketing segments.

OXY’s Segmental Details

Oil and Gas revenues totaled $5.67 billion in the reported quarter, up 1.8% year over year.

Chemical revenues amounted to $1.25 billion, down 4.8% year over year.

Midstream & Marketing revenues of $282 million plunged 20.3% year over year.

Production & Sales of OXY

The total production volume was 1,412 thousand barrels of oil equivalent per day (Mboe/d). The metric surpassed the company’s production guidance of 1,370-1,410 Mboe/d. Permian and Rockies & Other Domestic volumes exceeded the midpoint of the guided range, which contributed toward strong average daily production volumes.

Total sales volume was 1,411 Mboe/d, up 15.5% from the year-ago period.

OXY’s Realized Prices

Realized prices of crude oil decreased 6.7% year over year to $75.33 per barrel on a worldwide basis. Realized natural gas liquids prices decreased 2.7% year over year to $20.47 per barrel globally.

Natural gas prices declined 79.2% year over year to 40 cents per thousand cubic feet.

Highlights of OXY’s Q3 Release

Occidental’s overall third-quarter production volumes were better than expected, due to strong contribution from Permian assets. Gulf of Mexico’s average daily production volumes in the third quarter of 136 Mboe/d were slightly below the lower end of guidance, due to the weather impacts.

OxyChem’s income remained unchanged from the second quarter of 2024 income, as market conditions remained relatively unchanged.

Interest and debt expenses increased 35.7% to $312 million from $230 million in the year-ago quarter.

Financial Position of OXY

As of Sept. 30, 2024, Occidental had cash and cash equivalents of $1.76 billion compared with $1.4 billion as of Dec. 31, 2023.

As of Sept. 30, 2024, the company had long-term debt (net of current portion) of $25.46 billion compared with $18.5 billion as of Dec. 31, 2023. The company retired nearly $4 billion in debt in the third quarter, which is nearly 90% of its near-term debt retirement target.

OXY generated nearly $3.8 billion of operating cash flow in third-quarter 2024.

Total capital expenditure was $1.68 billion compared with $1.61 billion in the year-ago period.

OXY’s Guidance

For the fourth quarter of 2024, OXY expects production of 1,430-1,470 Mboe/d. Output from the Permian Resources segment is anticipated at 751-769 Mboe/d. Occidental expects international production volumes for fourth-quarter 2024 in the range of 228-234 Mboe/d.

Exploration expenses are estimated to be $120 million and interest expenses to be $340 million for the fourth quarter of 2024.

Zacks Rank of OXY

Occidental currently carries a Zacks Rank #5 (Strong Sell).

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

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