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Occidental Petroleum Misses on Q4 Earnings, Beats Revenues

Zacks Equity Research

Occidental Petroleum Corporation OXY is an integrated oil and gas company. This Houston, TX-based firm operates in the U.S. and several international territories with considerable exposure in exploration and production activities.

Occidental Petroleum invests substantially primarily in the Permian Basin and the Middle East besides pursuing a systematic asset divestment strategy. These initiatives will enable the company to expand its reserves and utilize the proceeds in profitable ventures. In addition, the company’s present focus on the midstream operations will allow it to diversify its revenue stream, going forward.

However, Occidental Petroleum is currently operating in a volatile commodity price environment. The oil supply glut, which resulted from higher production in the U.S., continues to drag down global oil prices. If this situation persists, the company’s future performance is expected to impact negatively.

Estimate Trend & Surprise History

Investors should note that the fourth quarter Zacks Consensus Estimate is a loss of 14 cents per share, down from an earnings estimate of 3 cents over the last 60 days.

Coming to the earnings surprise, Occidental Petroleum has surpassed the Zacks Consensus Estimate in all of the last four quarters, resulting in a positive average surprise of 88.97%.

Zacks Rank: Currently, Occidental Petroleum has a Zacks Rank#4 (Sell) but that could change following its fourth quarter 2015 earnings report which has just released. We have highlighted some of the key details from the just-released announcement below:

Earnings: Occidental Petroleum missed earnings this quarter. Our consensus called for fourth-quarter loss of 14 cents, and the company reported loss of 17 cents.

Revenue: Occidental Petroleum surpassed the revenue estimates in the fourth quarter. The company posted revenues of $2,843 million in the fourth quarter, compared to our consensus estimate of $2,800 million.

Key Stats: Average daily oil and gas production volumes in the quarter were 671 thousand barrels of oil equivalents (MBoe), up 12.6% from the prior-year level. The company registered a approximate 17.2% year-over-year improvement in average daily sales volumes to 721 thousand Boe.

Stock Price: It would be interesting to see how the market reacts to the earnings results during the trading session today.

Check back later for our full write up on this OXY earnings report later!

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