News

Occidental Petroleum Corporation OXY reported first-quarter 2024 earnings of 65 cents per share, which surpassed the Zacks Consensus Estimate of 56 cents by 16.1%. In the year-ago quarter, the company recorded earnings of $1.09.

GAAP earnings was 75 cents compared with $1 in the year-ago quarter.

Total Revenues

Total revenues came in at $6.01 billion, which lagged the Zacks Consensus Estimate of $6.66 billion by 9.8%. The top line declined 17.2% year over year.

Occidental Petroleum Corporation Price, Consensus and EPS Surprise

Segmental Details

Oil and Gas revenues totaled $4.9 billion in the reported quarter, down 7.7% year over year.

Chemical revenues amounted to $1.18 billion, down 15.6% year over year.

Midstream & Marketing revenues of $99 million plunged 86.8% year over year.

Production & Sales

Total production volume was 1,172 thousand barrels of oil equivalent per day (Mboe/d). The metric was within the company’s guidance of 1,155-1,195 Mboe/d. Rockies & Other Domestic production volumes exceed guidance, while Permian and International average daily production volumes were within guidance.

Total sales volume came in at 1,175 Mboe/d, down 3.2% from the year-ago period.

Realized Prices

Realized prices of crude oil increased 2.4% year over year to $76.04 per barrel on a worldwide basis. Realized natural gas liquids prices fell 9.3% year over year to $22.14 per barrel globally.

Natural gas prices declined 39.1% year over year to $1.68 per thousand cubic feet.

Highlights of the Release

Occidental benefited from new wells and usage of new technology that drove capital efficiency. The new wells that are planned to come online in Permian and Rockies regions are going to boost production volumes.

The company generated $2.2 billion of operating cash flow during first-quarter 2024.

Interest and debt expenses increased 19.3% to $284 million from $238 million in the year-ago quarter.

Financial Position

As of Mar 31, 2024, Occidental had cash and cash equivalents of $1.3 billion compared with $1.4 billion as of Dec 31, 2023.

As of Mar 31, 2024, the company had long-term debt (net of current portion) of $18.5 billion compared with $18.5 billion as of Dec 31, 2023.

Cash flow from operations amounted to $2 billion compared with $2.87 billion in the year-ago period.

Total capital expenditure was $1.78 billion compared with $1.46 billion in the year-ago period.

Guidance

For the second quarter of 2024, OXY expects production of 1,232-1,272 Mboe/d. Output from the Permian Resources segment is projected at 574-592 Mboe/d. Occidental reiterated its production volumes for 2024 in the range of 1,220-1280 Mboe/d, with expected contribution from Permian Resources in the range of 569-599 Mboe/d.

Exploration expenses are estimated to be $100 million for the second quarter and $325 million for 2024.

Zacks Rank

Occidental currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Releases

Devon Energy DVN reported first-quarter 2024 earnings per share (EPS) of $1.16, outpacing the Zacks Consensus Estimate of $1.10 by 5.5%. Strong production volumes and efficient cost management allowed the company to enjoy the benefit of rising oil prices during the quarter.

The Zacks Consensus Estimate for DVN’s 2024 earnings is pegged at $5.24 per share, implying an increase of 3.6% in the past 60 days. The stock delivered an average earnings surprise of 3.38% in the last four quarters.

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The Zacks Consensus Estimate for MUR’s 2024 earnings is pegged at $4.64 per share, implying an increase of 9.9% in the last 60 days. The stock delivered an average earnings surprise of 3.26% in the last four quarters.

CNX Resources Corporation CNX reported first-quarter 2024 operating earnings of 45 cents per share, which beat the Zacks Consensus Estimate of 36 cents by 25%. However, it plunged 19.6% from 56 cents in the year-ago quarter.

The Zacks Consensus Estimate for CNX’s 2024 earnings is pegged at $1.39 per share, implying a decrease of 26.8% from the year-ago actuals. The stock delivered an average earnings surprise of 5816% in the last four quarters.

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