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Occidental (OXY) Q3 Earnings and Revenues Surpass Estimates

Occidental's (OXY) Q3 earnings are better than expected. The company registers strong production from the Permian Basin and an improvement in commodity prices.

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This story originally appeared on Zacks

Occidental Petroleum Corporation OXY reported third-quarter 2021 earnings of 87 cents per share, beating the Zacks Consensus Estimate of 65 cents by 33.9%.

The company incurred a loss of 84 cents per share in the prior-year quarter. Strong performance from its segments boosted the results.

- Zacks

Total Revenues

Occidental's total revenues were $6,815 million, which surpassed the Zacks Consensus Estimate of $6,532 million by 4.5%.

The top line also improved 107.6% from the year-ago quarter. The year-over-year improvement was due to a rise in commodity prices.

Segment Details

Oil and Gas revenues for the quarter were $4,955 million, up 65.8% year over year.

Chemical revenues for the quarter were $1,396 million, up 49% year over year.

Midstream & Marketing revenues for the quarter were $702 million, up 92.8% year over year.

Production & Sales

Occidental’s total production volume for the third quarter was 1,160 thousand barrels of oil equivalent per day (Mboe/d), which touched the upper end of the guided range of 1,130-1,160 Mboe/d. Strong production volumes were attributed to higher volumes from the Permian Resources region. Permian Resources production for the third quarter was 499 Mboe/d, which exceeded the guided range of 484-494 Mboe/d.

For the quarter under review, total sales volume was 1,158 Mboe/d, down 2.9% from 1,192 Mboe/d recorded in the year-ago period. The decline was due to a drop in U.S. sales volumes.

Realized Prices

Third-quarter realized prices for crude oil improved 78.5% year over year to $68.74 per barrel on a worldwide basis. Worldwide realized natural gas liquids prices improved 129% from the prior-year quarter to $34.01 per barrel. Worldwide natural gas prices increased 120.6% from the year-ago quarter to $2.89 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 $5,735 million, down 24.1% year over year.

The company achieved the planned divestiture target of $10 billion by entering into a deal to sell its interest in two offshore Ghana assets for $750 million.

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 Sep 30, 2021, Occidental had cash and cash equivalents of $2,059 million compared with $2,008 million on Dec 31, 2020.

As of Sep 30, 2021, the company had long-term debt (net of current portion) of $30,915 million compared with $35,899 million on Dec 31, 2020. The debt level decrease was due to effective management of debt since the acquisition of Anadarko.

For the first nine months of 2021, cash from operations was $7,022 million, up from $2,475 million in the prior-year period. Free cash flow for the first nine months of 2021 was $5.9 billion.

For the same time period, Occidental’s total capital expenditure was $1,933 million compared with $1,921 million invested in the year-ago period.

Guidance

For fourth-quarter 2021, it expects production in the range of 1,125-1,155 Mboe/d and output from Permian Resources in the band of 472-482 Mboe/d. The company expects exploration expenses to be $105 million.

Zacks Rank

Currently, Occidental sports a Zacks Rank #1 (Strong Buy).

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

Other Releases

Devon Energy Corp. DVN reported third-quarter 2021 adjusted earnings of $1.08 per share, beating the Zacks Consensus Estimate of 92 cents by 17.4%.

ConocoPhillips COP reported third-quarter 2021 earnings of $1.77 per share, which surpassed the Zacks Consensus Estimate of $1.53 by 15.7%.

Marathon Petroleum Corporation MPC reported third-quarter 2021 adjusted earnings of 73 cents, beating the Zacks Consensus Estimate of 72 cents per share by 1.4%.



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