Occidental Petroleum Beats Q1 Earnings Estimates Significantly
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Source: Fool
- Earnings Beat: Occidental Petroleum reported Q1 earnings of $1.06 per share, significantly surpassing Wall Street's expectation of $0.59, although management acknowledged that better performance was possible, indicating potential in a high oil price environment.
- Oil Price Impact: With oil prices surging 85% in 2026, most of the increase occurred after March, resulting in Occidental only benefiting briefly from high prices in Q1, leading analysts to raise Q2 expectations to $1.58 per share.
- Hedging Challenges: Occidental's hedging strategy created headwinds in Q1, as it faced similar losses to Exxon and Chevron despite being less exposed to the Middle East, impacting short-term profitability.
- Strategic Restructuring: By selling its downstream business at the beginning of 2026, Occidental avoided the weak performance seen in refining operations, demonstrating effective strategic adjustments to optimize its business structure in a rising oil price environment.
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Analyst Views on OXY
Wall Street analysts forecast OXY stock price to fall
16 Analyst Rating
4 Buy
9 Hold
3 Sell
Hold
Current: 57.320
Low
38.00
Averages
47.27
High
64.00
Current: 57.320
Low
38.00
Averages
47.27
High
64.00
About OXY
Occidental Petroleum Corporation is an international energy company with assets primarily in the United States, the Middle East and North Africa. The Company is an oil and gas producer in the United States, including a producer in the Permian and DJ basins, and the offshore Gulf of Mexico. Its segments include oil and gas, and midstream and marketing. The oil and gas segment explores for, develops, and produces oil (which includes condensate), natural gas liquids (NGL) and natural gas. The Company's midstream and marketing segment purchases, markets, gathers, processes, transports, and stores oil (which includes condensate), NGL, natural gas, carbon dioxide (CO2) and power. The midstream and marketing segment provides flow assurance and maximizes the value of its oil and gas. It also optimizes its transportation and storage capacity and invests in entities that conduct similar activities. This segment also includes low-carbon venture businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Investment Plans: ExxonMobil plans to invest $42 million for seismic surveys and potentially drill two exploration wells six months post-survey completion, which could provide Occidental with a long-term growth catalyst if successful.
- Strategic Implications: This acquisition allows Occidental to replenish resources to counter production declines while further diversifying its investment portfolio globally, thereby enhancing its competitive position in the oil and gas sector.
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- Escalation of Military Actions: New U.S. airstrikes in Iran targeted a military site deemed a threat to U.S. forces and commercial maritime traffic, adding uncertainty to the ongoing diplomatic negotiations and prompting investors to reassess risk levels in the market.
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