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Occidental (OXY) Q2 Earnings and Revenues Beat Estimates

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·4 min read
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Occidental Petroleum Corporation OXY reported second-quarter 2021 earnings of 32 cents per share versus the Zacks Consensus Estimate of a breakeven. The company incurred a loss of $1.76 per share in the prior-year quarter.

Total Revenues

Occidental's total revenues were $6,010 million, which surpassed the Zacks Consensus Estimate of $5,847 million by 2.8%.

The top line also improved 101.9% from the year-ago quarter. The year-over-year improvement was due to strong contribution from all segments.

Occidental Petroleum Corporation Price, Consensus and EPS Surprise

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

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

Segment Details

Oil and Gas revenues for the quarter were $4,505 million, up 120.8% year over year.

Chemical revenues for the quarter were $1,187 million, up 40.3% year over year.

Midstream & Marketing revenues for the quarter were $497 million, up 143.6% year over year.

Production & Sales

Occidental’s total production volume for the second quarter was 1,203 thousand barrels of oil equivalent per day (Mboe/d), which exceeded the upper end of the guided range of 1,140-1,170 Mboe/d. Strong production volumes were attributed to higher volumes from the Permian Resources region. Permian Resources production for the second quarter was 504 Mboe/d, which exceeded the guided range of 490-5000 Mboe/d.

For the quarter under review, total sales volume was 1,199 Mboe/d, down 13.5% from 1,386 Mboe/d recorded in the year-ago period. The decline was due to a drop in U.S. and International sales volumes.

Realized Prices

Second-quarter realized prices for crude oil improved 177.4% year over year to $64.18 per barrel on a worldwide basis. Worldwide realized natural gas liquids prices improved 221.7% from the prior-year quarter to $25.06 per barrel. Worldwide natural gas prices increased 112.7% from the year-ago quarter to $2.34 per thousand cubic feet. Despite a decline in year-over-year sales volume, the company benefited from worldwide improvement in commodity prices.

Highlights of the Release

Occidental’s total expenses for the reported quarter were $5,823 million, down 48.4% year over year.

Out of its planned divestiture of $10.2 billion, the company has already completed $9.2 billion and utilized a major portion of the proceeds to lower outstanding debts.

Interest expenses for the reported quarter were up 24.2% to $385 million from $310 million in the year-ago period.

Financial Position

As of Jun 30, 2021, Occidental had cash and cash equivalents of $4,569 million compared with $2,008 million on Dec 31, 2020.

As of Jun 30, 2021, the company had a long-term debt (net of current portion) of $35,352 million compared with $35,745 million on Dec 31, 2020. The debt level decrease was due to effective management of debt since the acquisition of Anadarko.

For first- half of 2021, cash from operations was $4,224 million, up from $1,699 million in the prior-year period. Free cash flow for the first half of 2021 was $3.6 billion.

For first-half 2021, Occidental’s total capital expenditure was $1,277 million compared with $1,675 million invested in the year-ago period.

Guidance

For third-quarter 2021, it expects production in the range of 1,130-1,160 Mboe/d and output from Permian Resources in the band of 484-494 Mboe/d. The company expects exploration expenses to be $55 million.

For 2021, Occidental expects production to be 1,150 Mboe/d and output from Permian Resources to be 483 Mboe/d. The company expects exploration expenses for 2021 to be $250 million.

It expects to invest $2.9 billion in 2021 to further strengthen the existing operations. A total of $2.53 billion was invested in 2020. A major portion of the planned capital expenditure will be directed toward strengthening its oil and gas operations.

Zacks Rank

Currently, Occidental carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Releases

Devon Energy Corp. DVN reported second-quarter 2021 adjusted earnings of 60 cents, beating the Zacks Consensus Estimate of 53 cents per share by 13.2%.

CNX Resources Corporation CNX reported second-quarter 2021 adjusted earnings of 18 cents per share, which lagged the Zacks Consensus Estimate of 25 cents by 28%.

Continental Resources CLR reported second-quarter 2021 adjusted earnings of 91 cents, beating the Zacks Consensus Estimate of 57 cents per share by 59.6%.


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