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Occidental Tops Q3 Earnings Estimates on Strong Production Volumes
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Key Takeaways
Occidental posted Q3 earnings of 64 cents per share, topping the consensus estimate by 33.3%.
Production volumes hit 1,465 Mboe/d, led by record Gulf uptime and higher Permian output.
Oxychem will be sold to Berkshire Hathaway for $9.7B to reduce debt and bolster the balance sheet.
Occidental Petroleum Corporation (OXY - Free Report) reported third-quarter 2025 earnings of 64 cents per share, which beat the Zacks Consensus Estimate of 48 cents by 33.3%. However, the bottom line dropped 36% year over year.
GAAP earnings in the reported quarter were 65 cents per share compared with 98 cents in the year-ago quarter. The difference between GAAP and non-GAAP earnings was due to a 1-cent impact from after-tax non-core adjustments.
Total Revenues of OXY
Total revenues were $6.71 billion, which missed the Zacks Consensus Estimate of $6.72 billion marginally by 0.07%. The top line also lagged 6.21% year over year due to a decline in commodity prices.
Occidental Petroleum Corporation Price, Consensus and EPS Surprise
Oil and Gas revenues totaled $5.4 billion in the reported quarter, down 5.14% year over year.
Chemical revenues amounted to $1.17 billion, down 6.4% year over year.
Midstream & Marketing revenues of $306 million were down nearly 30.5% year over year.
Production & Sales of OXY
Total production volume was 1,465 thousand barrels of oil equivalent per day (Mboe/d). The metric surpassed the company’s guidance of 1,415-1,455 Mboe/d.
Total sales volume was 1,468 Mboe/d, up 4.04% from the year-ago period.
OXY’s Realized Prices
Realized prices of crude oil dropped 14% year over year to $64.78 per barrel on a worldwide basis. Realized natural gas liquids prices dropped 4.3% year over year to $19.6 per barrel globally.
Natural gas prices increased 270% year over year to $1.48 per thousand cubic feet.
Highlights of OXY’s Q3 Release
Occidental has started to unlock value from its Barnett Shale assets. Courtesy of OXY’s existing operation in the region, well development expenses in the Barnett Shale are expected to be 25% lower than normal.
Total costs and reduction in third-quarter 2025 were $5.72 billion, on par with year-ago quarter expenses.
Courtesy of operational efficiency, Occidental was able to record the highest quarterly uptime in the Gulf of America in the last six years, leading to strong production volumes from the region.
Strong contribution from the middle-east holdings boosted the overall performance of OXY’s international assets in the quarter.
Production volumes from the Permian Basin were 800 Mboe/d, up 9.7% from the year-ago quarter, courtesy of 436 wells which came online in the year-to-date period.
Interest and debt expenses decreased 13.5% to $270 million from $3122 million in the year-ago quarter, a positive impact from the ongoing debt reduction.
Development After Third-Quarter Close
Occidental has entered into a definitive agreement with Berkshire Hathaway to sell its chemical business, Oxychem, to the latter for $9.7 billion. The company plans to utilize a major portion of the sale proceeds to reduce its outstanding debt and strengthen the balance sheet. This transaction is expected to close in fourth-quarter 2025, subject to necessary regulatory approval.
Financial Position of OXY
As of Sept. 30, 2025, Occidental had cash and cash equivalents of $2.15 billion compared with $2.13 billion as of Dec. 31, 2024.
Occidental had long-term debt (net of current portion) of $20.84 billion as of Sept. 30, 2025, compared with $24.97 billion as of Dec. 31, 2024. The company retired $8.1 billion in debt in the last 18 months, which lowered annual interest expenses by $440 million.
OXY generated $7.89 billion of operating cash flow in the first nine months of 2025 compared with $8.08 billion in the same period of 2024.
Total capital expenditure was $5.67 billion in the first nine months of 2025 compared with $5.24 billion in the year-ago period.
OXY’s Guidance
For the fourth quarter of 2025, OXY expects production of 1,440-1,480 Mboe/d. Output from the Permian Resources segment is anticipated at 795-815 Mboe/d. Occidental expects international production volumes for fourth-quarter 2025 to be in the range of 230-236 Mboe/d.
Exploration expenses are estimated to be $125 million and interest expenses to be $270 million in the fourth quarter of 2025.
For 2025, OXY expects to bring online 545-565 wells in the Permian region and 100-120 wells in the Rockies region.
Capital expenditure for fourth-quarter 2025 is expected to be $1.7 billion.
Occidental expects its Midstream and Marketing income to improve in the fourth quarter due to lower tariff rates on transportation contract revisions.
Zacks Rank of OXY
Occidental currently carries a Zacks Rank #4 (Sell).
Devon Energy Corp. (DVN - Free Report) reported third-quarter 2025 earnings per share (EPS) of $1.04, beating the Zacks Consensus Estimate of 93 cents by 11.8%.
DVN’s long-term (three-to-five years) earnings growth rate is currently pinned at 3.28%. The Zacks Consensus Estimate for 2025 EPS is pegged at $3.93, indicating a year-over-year decline of 18.46%.
TotalEnergies SE (TTE - Free Report) reported third-quarter 2025 operating earnings of $1.77 (€1.50) per share, which missed the Zacks Consensus Estimate of $1.81 by 2.2%.
TTE’s long-term earnings growth rate is currently pinned at 5.89%. The Zacks Consensus Estimate for 2025 EPS is pegged at $7.06, indicating a year-over-year decline of 9.14%.
Murphy Oil Corporation (MUR - Free Report) delivered third-quarter 2025 adjusted net earnings of 41 cents per share, which beat the Zacks Consensus Estimate of 16 cents by 156.3%.
The Zacks Consensus Estimate for 2025 EPS is pegged at $1.20, indicating a year-over-year decline of 56.52%.
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Occidental Tops Q3 Earnings Estimates on Strong Production Volumes
Key Takeaways
Occidental Petroleum Corporation (OXY - Free Report) reported third-quarter 2025 earnings of 64 cents per share, which beat the Zacks Consensus Estimate of 48 cents by 33.3%. However, the bottom line dropped 36% year over year.
GAAP earnings in the reported quarter were 65 cents per share compared with 98 cents in the year-ago quarter. The difference between GAAP and non-GAAP earnings was due to a 1-cent impact from after-tax non-core adjustments.
Total Revenues of OXY
Total revenues were $6.71 billion, which missed the Zacks Consensus Estimate of $6.72 billion marginally by 0.07%. The top line also lagged 6.21% year over year due to a decline in commodity prices.
Occidental Petroleum Corporation Price, Consensus and EPS Surprise
Occidental Petroleum Corporation price-consensus-eps-surprise-chart | Occidental Petroleum Corporation Quote
OXY’s Q3 Segmental Details
Oil and Gas revenues totaled $5.4 billion in the reported quarter, down 5.14% year over year.
Chemical revenues amounted to $1.17 billion, down 6.4% year over year.
Midstream & Marketing revenues of $306 million were down nearly 30.5% year over year.
Production & Sales of OXY
Total production volume was 1,465 thousand barrels of oil equivalent per day (Mboe/d). The metric surpassed the company’s guidance of 1,415-1,455 Mboe/d.
Total sales volume was 1,468 Mboe/d, up 4.04% from the year-ago period.
OXY’s Realized Prices
Realized prices of crude oil dropped 14% year over year to $64.78 per barrel on a worldwide basis. Realized natural gas liquids prices dropped 4.3% year over year to $19.6 per barrel globally.
Natural gas prices increased 270% year over year to $1.48 per thousand cubic feet.
Highlights of OXY’s Q3 Release
Occidental has started to unlock value from its Barnett Shale assets. Courtesy of OXY’s existing operation in the region, well development expenses in the Barnett Shale are expected to be 25% lower than normal.
Total costs and reduction in third-quarter 2025 were $5.72 billion, on par with year-ago quarter expenses.
Courtesy of operational efficiency, Occidental was able to record the highest quarterly uptime in the Gulf of America in the last six years, leading to strong production volumes from the region.
Strong contribution from the middle-east holdings boosted the overall performance of OXY’s international assets in the quarter.
Production volumes from the Permian Basin were 800 Mboe/d, up 9.7% from the year-ago quarter, courtesy of 436 wells which came online in the year-to-date period.
Interest and debt expenses decreased 13.5% to $270 million from $3122 million in the year-ago quarter, a positive impact from the ongoing debt reduction.
Development After Third-Quarter Close
Occidental has entered into a definitive agreement with Berkshire Hathaway to sell its chemical business, Oxychem, to the latter for $9.7 billion. The company plans to utilize a major portion of the sale proceeds to reduce its outstanding debt and strengthen the balance sheet. This transaction is expected to close in fourth-quarter 2025, subject to necessary regulatory approval.
Financial Position of OXY
As of Sept. 30, 2025, Occidental had cash and cash equivalents of $2.15 billion compared with $2.13 billion as of Dec. 31, 2024.
Occidental had long-term debt (net of current portion) of $20.84 billion as of Sept. 30, 2025, compared with $24.97 billion as of Dec. 31, 2024. The company retired $8.1 billion in debt in the last 18 months, which lowered annual interest expenses by $440 million.
OXY generated $7.89 billion of operating cash flow in the first nine months of 2025 compared with $8.08 billion in the same period of 2024.
Total capital expenditure was $5.67 billion in the first nine months of 2025 compared with $5.24 billion in the year-ago period.
OXY’s Guidance
For the fourth quarter of 2025, OXY expects production of 1,440-1,480 Mboe/d. Output from the Permian Resources segment is anticipated at 795-815 Mboe/d. Occidental expects international production volumes for fourth-quarter 2025 to be in the range of 230-236 Mboe/d.
Exploration expenses are estimated to be $125 million and interest expenses to be $270 million in the fourth quarter of 2025.
For 2025, OXY expects to bring online 545-565 wells in the Permian region and 100-120 wells in the Rockies region.
Capital expenditure for fourth-quarter 2025 is expected to be $1.7 billion.
Occidental expects its Midstream and Marketing income to improve in the fourth quarter due to lower tariff rates on transportation contract revisions.
Zacks Rank of OXY
Occidental currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Releases
Devon Energy Corp. (DVN - Free Report) reported third-quarter 2025 earnings per share (EPS) of $1.04, beating the Zacks Consensus Estimate of 93 cents by 11.8%.
DVN’s long-term (three-to-five years) earnings growth rate is currently pinned at 3.28%. The Zacks Consensus Estimate for 2025 EPS is pegged at $3.93, indicating a year-over-year decline of 18.46%.
TotalEnergies SE (TTE - Free Report) reported third-quarter 2025 operating earnings of $1.77 (€1.50) per share, which missed the Zacks Consensus Estimate of $1.81 by 2.2%.
TTE’s long-term earnings growth rate is currently pinned at 5.89%. The Zacks Consensus Estimate for 2025 EPS is pegged at $7.06, indicating a year-over-year decline of 9.14%.
Murphy Oil Corporation (MUR - Free Report) delivered third-quarter 2025 adjusted net earnings of 41 cents per share, which beat the Zacks Consensus Estimate of 16 cents by 156.3%.
The Zacks Consensus Estimate for 2025 EPS is pegged at $1.20, indicating a year-over-year decline of 56.52%.