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Occidental (OXY) to Report Q2 Earnings: What's in the Cards?

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Occidental Petroleum Corporation (OXY - Free Report) is set to report second-quarter 2019 earnings on Jul 31, after market close. In the last reported quarter, the oil and gas company delivered a positive earnings surprise of 16.67%.

Let’s see how things are shaping up prior to this announcement.

Factors to Consider

Occidental expects second-quarter total production in the range of 723,000-73,000 barrels of oil equivalent per day (boe/d) and output from Permian Resources within 274,000-282,000 boe/d. International production is expected in the range of 291,000-293,000 boe/d. The company’s assets in the Permian Basin are expected to boost overall second-quarter production.

During the second quarter, Occidental entered into an agreement to acquire Anadarko Petroleum, which will further strengthen its position in the resource-rich Permian Basin.

For the to-be-reported quarter, the Zacks Consensus Estimate for total revenues is $4,390 million, which indicates growth of 8% from the year-ago reported figure. However, earnings per share of 99 cents are expected to decline 10% from the year-ago reported figure.

Earnings Whispers

Our proven model does not conclusively show that Occidental is likely to beat estimates this earnings season. This is because a stock needs to have both a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.

Earnings ESP: The company has an Earnings ESP of -5.86%.
 
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Occidental Petroleum Corporation Price and EPS Surprise

Zacks Rank: It currently carries a Zacks Rank #3. The company’s favorable rank when combined with a negative ESP makes earnings surprise unlikely in the quarter to be reported.

We caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

One can consider the following players in the Zacks Oil and Energy sector that have the right combination of elements to beat on earnings in the upcoming releases:

Keane Group, Inc. (FRAC - Free Report) has an Earnings ESP of +40.00% and a Zacks Rank #3. It is expected to report second-quarter 2019 earnings on Jul 29.

Cactus, Inc. (WHD - Free Report) has an Earnings ESP of +1.96% and a Zacks Rank of 3. It is expected to report second-quarter 2019 earnings on Jul 31.

Enbridge Inc. (ENB - Free Report) , a Zacks #2 Ranked stock, has an Earnings ESP of +9.52%. The company is expected to report second-quarter 2019 earnings on Aug 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

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