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Occidental Tops Q1 Earnings Estimates on Strong Production Volumes
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Key Takeaways
Occidental posted Q1 EPS of $1.06, topping consensus by 63.1% as production volumes came in strong.
Occidental revenues of $5.11B missed estimates as Oil & Gas revenues fell, while Midstream & Marketing surged.
Occidental cut debt, boosted cash and guided Q2 output of 1,390-1,430 Mboe/d with 2026 capex plans.
Occidental Petroleum Corporation (OXY - Free Report) reported first-quarter 2026 earnings of $1.06 per share, which outpaced the Zacks Consensus Estimate of 65 cents by 63.1%. The bottom line also rose 21.8% year over year.
GAAP earnings in the reported quarter were $3.13 per share compared with the earnings of 77 cents in the year-ago quarter.
Total Revenues of OXY
Total revenues were $5.11 billion, which missed the Zacks Consensus Estimate of $5.5 billion by 7%. The top line also lagged 25.3% year over year due to lower contributions from its Oil & Gas segment.
Occidental Petroleum Corporation Price, Consensus and EPS Surprise
Oil and Gas revenues totaled $4.98 billion in the reported quarter, down 12.5% year over year.
Midstream & Marketing revenues of $397 million jumped 129.5% year over year.
Production & Sales at OXY
Total production volume was 1,426 thousand barrels of oil equivalent per day (Mboe/d). The metric surpassed the company’s guided range of 1,385-1,425 Mboe/d.
Total sales volume was 1,428 Mboe/d, up 2.7% from the year-ago period.
OXY’s Realized Prices
Realized prices of crude oil dropped 1.6% year over year to $69.91 per barrel on a worldwide basis. Realized natural gas liquid prices fell 26.8% year over year to $18.99 per barrel globally.
Natural gas prices decreased 58.3% year over year to $1.01 per thousand cubic feet.
Highlights of OXY’s Q1 Release
Occidental advanced debt reduction priorities, repaying $7.1 billion of principal debt through May 5, 2026, reducing principal debt to $13.3 billion and progressing toward the $10 billion milestone.
Occidental reported strong first-quarter production due to robust contributions from Permian assets. Gulf of America’s average daily production volumes in the first quarter were 138 Mboe/d, up 14% year over year, which also contributed to the overall strong volumes.
Sequential improvement in the Midstream and Marketing segment’s performance was due to higher crude margins related to the timing impact of crude sales, higher gas margins from transportation capacity optimizations and higher sulfur prices at Al Hosn.
Total costs and reduction in the first quarter of 2026 were $4.86 billion, up 3.9% from $4.68 billion in the year-ago quarter.
Interest and debt expenses increased 39.4% to $432 million from $310 million in the year-ago quarter, a positive impact of the ongoing debt reduction.
Financial Position of OXY
As of March 31, 2026, Occidental had cash and cash equivalents of $3.81 billion compared with $1.97 billion as of Dec. 31, 2025.
Occidental had long-term debt (net of current portion) of $15.25 billion as of March 31, 2026 compared with $20.62 billion as of Dec. 31, 2025. The company retired $15.6 billion in debt in the last 22 months, which lowered annual interest expenses by $830 million.
OXY generated $3.25 billion of operating cash flow in the first three months of 2026 compared with $2.77 billion in the same period of 2025.
Total capital expenditure was $1.55 billion in the first three months of 2026 compared with $1.68 billion in the year-ago period.
OXY’s Guidance
For the second quarter of 2026, OXY expects production in the band of 1,390-1,430 Mboe/d. Output from the Permian Resources segment is anticipated at 783-803 Mboe/d. Occidental expects international production volumes for the second quarter of 2026 to be in the range of 205-211 Mboe/d.
Exploration expenses are estimated to be $75 million and interest expenses to be $185 million in the second quarter of 2026.
For 2026, OXY plans to bring online 460-510 wells in the Permian region and 150-170 wells in the Rockies region.
Capital expenditure for 2026 is projected to be in the range of $5.5-$5.9 billion.
Energy Transfer (ET - Free Report) reported first-quarter 2026 adjusted earnings of 35 cents per unit, which missed the Zacks Consensus Estimate of 38 cents by 7.9%. The bottom line also decreased 2.8% from the year-ago figure of 36 cents.
Revenues of $27.77 billion lagged the Zacks Consensus Estimate of $29.29 billion by 5.2%. Total revenues rose 32.1% from the year-ago figure of $21.02 billion.
CNX Resources Corporation (CNX - Free Report) reported first-quarter 2026 operating earnings of $1.21 per share, which beat the Zacks Consensus Estimate of 93 cents by 30.11%. The bottom line increased 55.13% in the year-ago quarter.
The company reported revenues of $722 million, which topped the Zacks Consensus Estimate of $522 million by 38.31%. The top line rose 63.72% from the prior-year quarter’s $441 million.
National Fuel Gas Company (NFG - Free Report) reported second-quarter fiscal 2026 adjusted operating earnings of $2.71 per share, which missed the Zacks Consensus Estimate of $2.85 by 4.91%. The bottom line increased 13.39% from the year-ago quarter’s reported figure of $2.39.
NFG reported sales of $858.4 million, which beat the Zacks Consensus Estimate of $830 million by 3.41%. The top line increased 17.59% from the prior-year recorded figure of $730 million.
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Occidental Tops Q1 Earnings Estimates on Strong Production Volumes
Key Takeaways
Occidental Petroleum Corporation (OXY - Free Report) reported first-quarter 2026 earnings of $1.06 per share, which outpaced the Zacks Consensus Estimate of 65 cents by 63.1%. The bottom line also rose 21.8% year over year.
GAAP earnings in the reported quarter were $3.13 per share compared with the earnings of 77 cents in the year-ago quarter.
Total Revenues of OXY
Total revenues were $5.11 billion, which missed the Zacks Consensus Estimate of $5.5 billion by 7%. The top line also lagged 25.3% year over year due to lower contributions from its Oil & Gas segment.
Occidental Petroleum Corporation Price, Consensus and EPS Surprise
Occidental Petroleum Corporation price-consensus-eps-surprise-chart | Occidental Petroleum Corporation Quote
OXY’s Q1 Segmental Details
Oil and Gas revenues totaled $4.98 billion in the reported quarter, down 12.5% year over year.
Midstream & Marketing revenues of $397 million jumped 129.5% year over year.
Production & Sales at OXY
Total production volume was 1,426 thousand barrels of oil equivalent per day (Mboe/d). The metric surpassed the company’s guided range of 1,385-1,425 Mboe/d.
Total sales volume was 1,428 Mboe/d, up 2.7% from the year-ago period.
OXY’s Realized Prices
Realized prices of crude oil dropped 1.6% year over year to $69.91 per barrel on a worldwide basis. Realized natural gas liquid prices fell 26.8% year over year to $18.99 per barrel globally.
Natural gas prices decreased 58.3% year over year to $1.01 per thousand cubic feet.
Highlights of OXY’s Q1 Release
Occidental advanced debt reduction priorities, repaying $7.1 billion of principal debt through May 5, 2026, reducing principal debt to $13.3 billion and progressing toward the $10 billion milestone.
Occidental reported strong first-quarter production due to robust contributions from Permian assets. Gulf of America’s average daily production volumes in the first quarter were 138 Mboe/d, up 14% year over year, which also contributed to the overall strong volumes.
Sequential improvement in the Midstream and Marketing segment’s performance was due to higher crude margins related to the timing impact of crude sales, higher gas margins from transportation capacity optimizations and higher sulfur prices at Al Hosn.
Total costs and reduction in the first quarter of 2026 were $4.86 billion, up 3.9% from $4.68 billion in the year-ago quarter.
Interest and debt expenses increased 39.4% to $432 million from $310 million in the year-ago quarter, a positive impact of the ongoing debt reduction.
Financial Position of OXY
As of March 31, 2026, Occidental had cash and cash equivalents of $3.81 billion compared with $1.97 billion as of Dec. 31, 2025.
Occidental had long-term debt (net of current portion) of $15.25 billion as of March 31, 2026 compared with $20.62 billion as of Dec. 31, 2025. The company retired $15.6 billion in debt in the last 22 months, which lowered annual interest expenses by $830 million.
OXY generated $3.25 billion of operating cash flow in the first three months of 2026 compared with $2.77 billion in the same period of 2025.
Total capital expenditure was $1.55 billion in the first three months of 2026 compared with $1.68 billion in the year-ago period.
OXY’s Guidance
For the second quarter of 2026, OXY expects production in the band of 1,390-1,430 Mboe/d. Output from the Permian Resources segment is anticipated at 783-803 Mboe/d. Occidental expects international production volumes for the second quarter of 2026 to be in the range of 205-211 Mboe/d.
Exploration expenses are estimated to be $75 million and interest expenses to be $185 million in the second quarter of 2026.
For 2026, OXY plans to bring online 460-510 wells in the Permian region and 150-170 wells in the Rockies region.
Capital expenditure for 2026 is projected to be in the range of $5.5-$5.9 billion.
Zacks Rank of OXY
Occidental currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Recent Sector Releases
Energy Transfer (ET - Free Report) reported first-quarter 2026 adjusted earnings of 35 cents per unit, which missed the Zacks Consensus Estimate of 38 cents by 7.9%. The bottom line also decreased 2.8% from the year-ago figure of 36 cents.
Revenues of $27.77 billion lagged the Zacks Consensus Estimate of $29.29 billion by 5.2%. Total revenues rose 32.1% from the year-ago figure of $21.02 billion.
CNX Resources Corporation (CNX - Free Report) reported first-quarter 2026 operating earnings of $1.21 per share, which beat the Zacks Consensus Estimate of 93 cents by 30.11%. The bottom line increased 55.13% in the year-ago quarter.
The company reported revenues of $722 million, which topped the Zacks Consensus Estimate of $522 million by 38.31%. The top line rose 63.72% from the prior-year quarter’s $441 million.
National Fuel Gas Company (NFG - Free Report) reported second-quarter fiscal 2026 adjusted operating earnings of $2.71 per share, which missed the Zacks Consensus Estimate of $2.85 by 4.91%. The bottom line increased 13.39% from the year-ago quarter’s reported figure of $2.39.
NFG reported sales of $858.4 million, which beat the Zacks Consensus Estimate of $830 million by 3.41%. The top line increased 17.59% from the prior-year recorded figure of $730 million.