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Occidental's (OXY) Q4 Earnings & Revenues Surpass Estimates

Zacks Equity Research

Occidental Petroleum Corporation OXY reported fourth-quarter 2018 earnings of $1.22 per share, surpassing the Zacks Consensus Estimate of $1.12 by 8.9%. In the year-ago quarter, the company’s bottom line came in at 41 cents per share.

Total Revenues

Occidental's total revenues were $4,802 million, beating the Zacks Consensus Estimate of $4,512 million by 6.4%. Also, the top line improved 33.8% year over year from $3,588 million.

This year-over-year improvement in total revenues resulted from an increased production from Permian Resources, coupled with revenue growth from the Midstream & Marketing segment.

Occidental Petroleum Corporation Price, Consensus and EPS Surprise

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

Production & Sales

Occidental’s average daily net oil, liquids and gas production volume expanded to 700,000 barrels of oil equivalent per day (boe/d) from 621,000 boe/d in the prior-year quarter. This improvement in production volume was backed by higher drilling activity and solid output in the Permian Resources region. Permian Resources production improved 57% year over year.

In the quarter under review, total sales volume was 702,000 boe/d compared with 624,000 boe/d recorded in the year-ago period.

Realized Prices

Realized prices for crude oil in the fourth quarter rose 4.5% year over year to $56.11 per barrel on a worldwide basis.

Worldwide realized NGL prices decreased 8.8% from the prior-year quarter to $22.88 per barrel.

However, worldwide natural gas prices were down 13.2% from the year-ago quarter to $1.51 per thousand cubic feet.

Highlights of the Release

Selling, general and administrative and other operating expenses in the fourth quarter were $473 million, up 5.6% year over year from $448 million.

Interest expenses in the reported quarter were $99 million compared with $87 million in the year-ago period.

Financial Position

As of Dec 31, 2018, Occidental had cash and cash equivalents of $3,033 million compared with $1,672 million recorded in the corresponding period of 2017.

As of Dec 31, 2018, the company had a long-term debt (net of current portion) of $10,201 million compared with $9,328 million on Dec 31, 2017.

In the fourth quarter of 2018, cash from operations was $2,500 million, up from $1,421 million in the prior-year period.

In fourth-quarter 2018, Occidental’s total capital expenditure was $1,337 million, higher than $1,160 million invested in the year-ago period.

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.

Oil & Energy Releases

ConocoPhillips COP reported fourth-quarter earnings of $1.13 per share, beating the Zacks Consensus Estimate by 14.1%.

Hess Corporation HES reported fourth-quarter loss of 3 cents per share, narrower than the Zacks Consensus Estimate of 44 cents.

Andeavor Logistics LP ANDX reported fourth-quarter earnings of 66 cents per unit, lagging the Zacks Consensus Estimate by 9.6%.

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