Occidental Petroleum Corp : Jefferies Cuts Target Price To $52 From $54

Occidental Petroleum Corporation OXY reported fourth-quarter 2024 earnings of 80 cents per share, which surpassed the Zacks Consensus Estimate of 67 cents by 19.4%. In the year-ago quarter, the company recorded earnings of 74 cents per share.

Find the latest earnings estimates and surprises on Zacks Earnings Calendar.

GAAP loss in the reported quarter was 32 cents per share against earnings of $1.08 in the year-ago quarter.

Adjusted earnings in 2024 were $3.46 per share, down 6.5% year over year from $3.70 reported in 2023.

Total Revenues of OXY

Total revenues were $6.83 billion, which lagged the Zacks Consensus Estimate of $7.14 billion by 4.2%. The top line decreased 9.2% year over year due to lower contributions from its Chemical and Midstream & Marketing segments.

Total revenues in 2024 were $26.88 billion, down 7% from $28.91 billion reported in 2023.

Occidental Petroleum Corporation Price, Consensus and EPS Surprise

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

OXY’s Q4 Segmental Details

Oil and Gas revenues totaled $5.62 billion in the reported quarter, up 3.7% year over year.

Chemical revenues amounted to $1.21 billion, down 1.2% year over year.

Midstream & Marketing revenues of $141 million plunged 77.7% year over year.

Production & Sales of OXY

Total production volume was 1,463 thousand barrels of oil equivalent per day (Mboe/d). The metric was near the upper end of the company’s production guidance of 1,430-1,470 Mboe/d. Permian and Rockies & Other Domestic volumes exceeded the midpoint of the guided range, which contributed toward strong average daily production volumes.

Total sales volume was 1,463 Mboe/d, up 19.7% from the year-ago period.

OXY’s Realized Prices

Realized prices of crude oil decreased 11.6% year over year to $69.73 per barrel on a worldwide basis. Realized natural gas liquids prices increased 4.15% year over year to $21.80 per barrel globally.

Natural gas prices declined 32.9% year over year to $1.26 per thousand cubic feet.

Highlights of OXY’s Q4 Release

Occidental reported strong fourth-quarter production, due to strong contribution from Permian assets. Rockies & Other Domestic average daily production volumes in the fourth quarter were 325 Mboe/d, up 14% year over year, which also contributed toward overall strong volumes.

OxyChem’s income dropped sequentially due to lower realized polyvinyl chloride pricing and lower seasonal fourth-quarter demand across most of its product lines.

Interest and debt expenses increased 32.4% to $327 million from $247 million in the year-ago quarter.

Financial Position of OXY

As of Dec. 31, 2024, Occidental had cash and cash equivalents of $2.13 billion compared with $1.4 billion as of Dec. 31, 2023.

As of Dec. 31, 2024, the company had long-term debt (net of current portion) of $24.97 billion compared with $18.5 billion as of Dec. 31, 2023. The company retired $0.5 billion in debt in the fourth quarter and completed the near-term debt retirement commitment of $4.5 billion.

OXY generated nearly $11.7 billion of operating cash flow in 2024 compared with $11.65 billion in 2023.

Total capital expenditure was $7.01 billion in 2024 compared with $6.27 billion in the year-ago period.

OXY’s Guidance

For the first quarter of 2025, OXY expects production of 1,370-1,410 Mboe/d. Output from the Permian Resources segment is anticipated at 745-765 Mboe/d. Occidental expects international production volumes for first-quarter 2025 in the range of 221-227 Mboe/d.

Exploration expenses are estimated to be $60 million and interest expenses to be $320 million in the first quarter of 2025.

Zacks Rank of OXY

Occidental currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Releases

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Zacks Investment Research

Occidental Petroleum has an average rating of hold and mean price target of $61.04, according to analysts polled by FactSet.

Occidental Petroleum has an average rating of hold and mean price target of $60.96, according to analysts polled by FactSet.