Occidental Petroleum Corporation (OXY - Free Report) reported third-quarter 2018 earnings of $1.77 per share, surpassing the Zacks Consensus Estimate of $1.51 by 17.2%. In the year-ago quarter, the company’s bottom line came in at 18 cents per share.
Occidental Petroleum's total revenues were $6,176 million, beating the Zacks Consensus Estimate of $4,661 million by 32.5%. Also, the top line soared 72.1% year over year from $3,588 million.
This year-over-year improvement in total revenues was owing to an increased production from Permian Resources, which surged 60% year over year coupled with revenue growth from Midstream & Marketing segment.
Occidental Petroleum Corporation Price, Consensus and EPS Surprise
Production & Sales
Occidental Petroleum’s average daily net oil, liquids and gas production volume expanded to 681,000 barrels of oil equivalent per day (boe/d), up from 600,000 boe/d in the prior-year quarter. This improvement in the production volume was backed by higher drilling activity and a solid output in the Permian Resources region.
Occidental Petroleum’s production in the third quarter was within the company’s guidance of 665,000-687,000 boe/d. Also, Permian Resource’s production of 225,000 boe/d was at the upper end of the projection of 215,000-225,000 boe/d, provided by the company.
In the quarter under review, total sales volume was 696,000 boe/d compared with 600,000 boe/d recorded in the year-ago period.
Realized prices for crude oil in the third quarter rose 35.7% year over year to $62.67 per barrel worldwide.
Worldwide realized NGL prices increased 42.6% to $29.55 per barrel.
However, worldwide natural gas prices were down 9.3% to $1.62 per thousand cubic feet.
Highlights of the Release
Pre-tax income from its Chemical Segment in the third quarter was $321 million, up 60.5% year over year and above the view of $315 million.
Midstream and Marketing segment’s adjusted pre-tax income was $796 million, up from the year-over-year figure of $4 million. This uptick was courtesy of higher earnings derived in the segment from an improved crude oil spread.
As of Sep 30, 2018, Occidental Petroleum had cash and cash equivalents of $2,954 million compared with $1,672 million as of Dec 31, 2017.
As of Sep 30, 2018, the company had long-term debt (net of current portion) of $10,198 million compared with $9,328 million as of Dec 31, 2017.
In the third quarter of 2018, cash from operations was $2,404 million, up 121.4% from $1,086 million in the prior-year period.
In third-quarter 2018, Occidental Petroleum’s total capital expenditure was $1,319 million, higher than $947 million invested in the year-ago quarter.
Currently, Occidental Petroleum carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Oil & Energy Releases
Northern Oil and Gas, Inc. (NOG - Free Report) is expected to report third-quarter 2018 earnings on Nov 8. It has an Earnings ESP of +6.52% and a Zacks Rank of 2.
Penn Virginia Corporation (PVAC - Free Report) has an Earnings ESP of +6.38% and is a Zacks #2 Ranked stock. It is slated to report third-quarter 2018 earnings on Nov 14.
Midstream Partners, LP (SMLP - Free Report) has a an Earnings ESP of +64.00% and a Zacks Rank #1. The company is scheduled to report third-quarter earnings on Nov 8.
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