Occidental Petroleum Reports Strong Q4 Earnings, Shares Rise
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Should l Buy OXY?
Source: Benzinga
- Earnings Beat: Occidental Petroleum reported adjusted earnings per share of 31 cents for Q4, surpassing the consensus estimate of 18 cents, indicating a significant improvement in profitability that boosts investor confidence.
- Production and Reserves: The company achieved total production of 1,481 Mboed, exceeding the high end of guidance, while year-end worldwide proved reserves stood at 4.6 billion BOE, with a reserves replacement ratio of 98%, ensuring future production stability.
- Analyst Insights: Although JPMorgan analyst Arun Jayaram maintained an Underweight rating on the stock, he noted that the earnings upside was driven by lower operating expenses, slightly higher production, and strong midstream/marketing pre-tax income, reflecting effective cost management.
- Future Outlook: The company guided for Q1 volumes of 1,405 MBoe/d, which is 4%-5% below Street estimates, and plans to reduce capital expenditures by 12%, indicating a cautious strategy amid macro uncertainties, even as oil volume guidance is only 1%-2% below consensus.
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Analyst Views on OXY
Wall Street analysts forecast OXY stock price to rise
16 Analyst Rating
4 Buy
9 Hold
3 Sell
Hold
Current: 47.110
Low
38.00
Averages
47.27
High
64.00
Current: 47.110
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. It operates through three segments: oil and gas, chemical 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 chemical segment primarily manufactures and markets basic chemicals and vinyls. The 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.
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.
OCCIDENTAL PETROLEUM STOCK RISES 9.7% FOLLOWING BETTER-THAN-EXPECTED Q4 PROFITS
- Stock Performance: Occidental Petroleum shares increased by 9.7% following the announcement of their fourth-quarter profits.
- Profit Surpassing Estimates: The company's profits for the quarter exceeded analysts' expectations, contributing to the rise in stock value.
See More
Occidental Petroleum Strengthens Balance Sheet and Increases Dividend
- Strong Stock Performance: Occidental Petroleum (OXY) shares surged as investor interest grew following the completion of its $9.7 billion sale of the OxyChem division to Berkshire Hathaway, reflecting positive market sentiment towards the company's strategic transformation.
- Significant Debt Reduction: In its fourth-quarter earnings report, the company revealed it used proceeds from the sale to cut approximately $5.8 billion in debt, reducing total debt to about $15 billion, which materially strengthens its financial position and enhances future investment capacity.
- Dividend Increase Attracts Investors: Occidental raised its quarterly dividend by over 8% to 26 cents per share, marking a strategic shift from debt reduction to capital returns, thereby boosting shareholder confidence and investment appeal.
- Focus on Core Business: The company is doubling down on investments in the Permian Basin, ensuring future growth, with strong operating cash flow and ongoing debt reduction plans supporting its long-term development.
See More
Occidental Petroleum Reports Strong Q4 Earnings, Shares Rise
- Earnings Beat: Occidental Petroleum reported adjusted earnings per share of 31 cents for Q4, surpassing the consensus estimate of 18 cents, indicating a significant improvement in profitability that boosts investor confidence.
- Production and Reserves: The company achieved total production of 1,481 Mboed, exceeding the high end of guidance, while year-end worldwide proved reserves stood at 4.6 billion BOE, with a reserves replacement ratio of 98%, ensuring future production stability.
- Analyst Insights: Although JPMorgan analyst Arun Jayaram maintained an Underweight rating on the stock, he noted that the earnings upside was driven by lower operating expenses, slightly higher production, and strong midstream/marketing pre-tax income, reflecting effective cost management.
- Future Outlook: The company guided for Q1 volumes of 1,405 MBoe/d, which is 4%-5% below Street estimates, and plans to reduce capital expenditures by 12%, indicating a cautious strategy amid macro uncertainties, even as oil volume guidance is only 1%-2% below consensus.
See More
Trump Considers Military Strikes Against Iran
- Military Action Possibility: Trump stated he will decide within the next 10 days whether to launch military strikes against Iran, raising market concerns about escalating tensions that could lead to further oil price volatility.
- Oil Price Surge: Amid fears of a potential U.S. attack on Iran, WTI crude prices have risen 6% this week and 16% year-to-date, reaching $66.68 per barrel, indicating market sensitivity to geopolitical risks.
- Military Buildup in the Middle East: The U.S. is undergoing a significant military buildup in the Middle East, with the USS Abraham Lincoln already in the region and the USS Gerald Ford en route, reflecting heightened U.S. vigilance regarding the situation with Iran.
- Limited Negotiation Progress: Although U.S. envoys held talks with Iran in Geneva regarding its nuclear program, Vice President JD Vance noted that Iran did not address the red lines set by Trump, indicating substantial disagreements remain between the two parties.
See More
Significant Stock Movements Among Multiple Companies
- Klarna Guidance Miss: Klarna's shares plummeted about 25% as its first-quarter operating income guidance of $5 million to $35 million fell significantly short of Wall Street's expectation of $61.9 million, indicating potential challenges in future financing capabilities.
- Blue Owl Loan Sale: Blue Owl Capital's stock dropped nearly 10% after announcing the sale of $1.4 billion in loans at 99.7% of par value, with proceeds aimed at debt repayment and capital return, highlighting liquidity pressures and a halt on redemptions for retail investors.
- Omnicom Buyback Plan: Omnicom's shares surged 13% after reporting fourth-quarter revenue of $5.5 billion, a nearly 28% year-over-year increase, alongside a $5 billion share buyback authorization, reflecting strong financial performance and confidence in future growth.
- Deere Earnings Beat: Deere's stock rose 13% as it reported first-quarter earnings of $2.42 per share on $8 billion in revenue, both exceeding analyst expectations, indicating robust demand for agricultural equipment and potential market share growth ahead.
See More
U.S. Pressures IEA to Abandon Net Zero Goals
- U.S. Pressure on IEA: U.S. Energy Secretary Chris Wright stated at the IEA ministerial meeting in Paris that the U.S. would pressure the IEA to abandon its net zero by 2050 goal, indicating a potential withdrawal from the agency if reforms are not made, which could significantly alter global energy policy.
- Skepticism Towards Climate Agreements: Wright criticized the IEA's decade-long commitment to net zero as a destructive illusion, reflecting a diminishing U.S. confidence in climate agreements and potentially leading to fractures in international cooperation on climate issues.
- IEA's Forecast Controversy: The IEA faced backlash from the Trump administration for its projection that global oil production would peak around 2030, with Wright labeling this forecast as nonsensical, suggesting that such positions could destabilize the global economy.
- Climate Change Warnings: Scientists have warned that global average temperatures must not exceed 1.5 degrees Celsius to avoid the worst impacts of the climate crisis, making the IEA's policy direction crucial for future climate actions and international commitments.
See More
OCCIDENTAL PETROLEUM STOCK RISES 9.7% FOLLOWING BETTER-THAN-EXPECTED Q4 PROFITS
- Stock Performance: Occidental Petroleum shares increased by 9.7% following the announcement of their fourth-quarter profits.
- Profit Surpassing Estimates: The company's profits for the quarter exceeded analysts' expectations, contributing to the rise in stock value.
See More
Occidental Petroleum Strengthens Balance Sheet and Increases Dividend
- Strong Stock Performance: Occidental Petroleum (OXY) shares surged as investor interest grew following the completion of its $9.7 billion sale of the OxyChem division to Berkshire Hathaway, reflecting positive market sentiment towards the company's strategic transformation.
- Significant Debt Reduction: In its fourth-quarter earnings report, the company revealed it used proceeds from the sale to cut approximately $5.8 billion in debt, reducing total debt to about $15 billion, which materially strengthens its financial position and enhances future investment capacity.
- Dividend Increase Attracts Investors: Occidental raised its quarterly dividend by over 8% to 26 cents per share, marking a strategic shift from debt reduction to capital returns, thereby boosting shareholder confidence and investment appeal.
- Focus on Core Business: The company is doubling down on investments in the Permian Basin, ensuring future growth, with strong operating cash flow and ongoing debt reduction plans supporting its long-term development.
See More
Occidental Petroleum Reports Strong Q4 Earnings, Shares Rise
- Earnings Beat: Occidental Petroleum reported adjusted earnings per share of 31 cents for Q4, surpassing the consensus estimate of 18 cents, indicating a significant improvement in profitability that boosts investor confidence.
- Production and Reserves: The company achieved total production of 1,481 Mboed, exceeding the high end of guidance, while year-end worldwide proved reserves stood at 4.6 billion BOE, with a reserves replacement ratio of 98%, ensuring future production stability.
- Analyst Insights: Although JPMorgan analyst Arun Jayaram maintained an Underweight rating on the stock, he noted that the earnings upside was driven by lower operating expenses, slightly higher production, and strong midstream/marketing pre-tax income, reflecting effective cost management.
- Future Outlook: The company guided for Q1 volumes of 1,405 MBoe/d, which is 4%-5% below Street estimates, and plans to reduce capital expenditures by 12%, indicating a cautious strategy amid macro uncertainties, even as oil volume guidance is only 1%-2% below consensus.
See More
Trump Considers Military Strikes Against Iran
- Military Action Possibility: Trump stated he will decide within the next 10 days whether to launch military strikes against Iran, raising market concerns about escalating tensions that could lead to further oil price volatility.
- Oil Price Surge: Amid fears of a potential U.S. attack on Iran, WTI crude prices have risen 6% this week and 16% year-to-date, reaching $66.68 per barrel, indicating market sensitivity to geopolitical risks.
- Military Buildup in the Middle East: The U.S. is undergoing a significant military buildup in the Middle East, with the USS Abraham Lincoln already in the region and the USS Gerald Ford en route, reflecting heightened U.S. vigilance regarding the situation with Iran.
- Limited Negotiation Progress: Although U.S. envoys held talks with Iran in Geneva regarding its nuclear program, Vice President JD Vance noted that Iran did not address the red lines set by Trump, indicating substantial disagreements remain between the two parties.
See More
Significant Stock Movements Among Multiple Companies
- Klarna Guidance Miss: Klarna's shares plummeted about 25% as its first-quarter operating income guidance of $5 million to $35 million fell significantly short of Wall Street's expectation of $61.9 million, indicating potential challenges in future financing capabilities.
- Blue Owl Loan Sale: Blue Owl Capital's stock dropped nearly 10% after announcing the sale of $1.4 billion in loans at 99.7% of par value, with proceeds aimed at debt repayment and capital return, highlighting liquidity pressures and a halt on redemptions for retail investors.
- Omnicom Buyback Plan: Omnicom's shares surged 13% after reporting fourth-quarter revenue of $5.5 billion, a nearly 28% year-over-year increase, alongside a $5 billion share buyback authorization, reflecting strong financial performance and confidence in future growth.
- Deere Earnings Beat: Deere's stock rose 13% as it reported first-quarter earnings of $2.42 per share on $8 billion in revenue, both exceeding analyst expectations, indicating robust demand for agricultural equipment and potential market share growth ahead.
See More
U.S. Pressures IEA to Abandon Net Zero Goals
- U.S. Pressure on IEA: U.S. Energy Secretary Chris Wright stated at the IEA ministerial meeting in Paris that the U.S. would pressure the IEA to abandon its net zero by 2050 goal, indicating a potential withdrawal from the agency if reforms are not made, which could significantly alter global energy policy.
- Skepticism Towards Climate Agreements: Wright criticized the IEA's decade-long commitment to net zero as a destructive illusion, reflecting a diminishing U.S. confidence in climate agreements and potentially leading to fractures in international cooperation on climate issues.
- IEA's Forecast Controversy: The IEA faced backlash from the Trump administration for its projection that global oil production would peak around 2030, with Wright labeling this forecast as nonsensical, suggesting that such positions could destabilize the global economy.
- Climate Change Warnings: Scientists have warned that global average temperatures must not exceed 1.5 degrees Celsius to avoid the worst impacts of the climate crisis, making the IEA's policy direction crucial for future climate actions and international commitments.
See More
