Occidental (OXY) Q3 Earnings & Revenues Surpass Estimates

Occidental Petroleum Corporation (NYSE:OXY) 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.

Total Revenues

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

Occidental Petroleum Corporation Price, Consensus and EPS Surprise | Occidental Petroleum Corporation Quote

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

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.

Financial Position

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.

Zacks Rank

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. (NYSE:NOG) 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 (NASDAQ:PVAC) 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 (NYSE:SMLP) 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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