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Occidental (OXY) to Post Q1 Earnings: What's in the Offing?

·3 min read

Occidental Petroleum Corporation OXY is scheduled to release first-quarter 2021 results on May 10. In the last reported quarter, the company delivered a negative earnings surprise of 47.2%.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors to Consider

Occidental’s first-quarter production is expected to have been driven by domestic basin assets, offset to some extent by the unprecedented weather conditions in Texas in February.

Courtesy of the company’s cost-management initiatives, first-quarter operating and overhead costs are likely to have remained low. Proper management and reduction of debts are likely to have further lowered capital servicing cost in the first quarter. It is also expected to have gained from improving commodity prices as was the case with Devon Energy Corporation DVN, which also benefited from higher realized commodity prices in the first quarter.

Expectations

The Zacks Consensus Estimate for first-quarter production is pegged at 1,111 thousand barrels of oil equivalent (MBOE) per day. The company expects production in the range of 1,085-1,155 MBOE/d and output from Permian Resources within 450-460 MBOE/d.

The Zacks Consensus Estimate for the bottom line for the first quarter is pegged at a loss of 33 cents per share, indicating a 36.5% improvement from the prior-year loss.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for Occidental this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here as you see below.

Occidental Petroleum Corporation Price and EPS Surprise

Occidental Petroleum Corporation Price and EPS Surprise
Occidental Petroleum Corporation Price and EPS Surprise

Occidental Petroleum Corporation price-eps-surprise | Occidental Petroleum Corporation Quote

Earnings ESP: The company’s Earnings ESP is 0.00%.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Occidental currently carries a Zacks Rank #3.

Stocks to Consider

Here are a few companies worth considering that have the right combination of elements to beat on earnings in the upcoming releases.

Western Midstream Partners WES is likely to release first-quarter 2021 results on May 10. It has an Earnings ESP of +5.25% and a Zacks Rank #3.

Duke Energy Corporation DUK is likely to release first-quarter 2021 results on May 10. It has an Earnings ESP of +0.16% and a Zacks Rank #3.

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Zacks Investment Research