Occidental Petroleum Corporation OXY reported first-quarter 2021 loss of 15 cents per share, narrower than the Zacks Consensus Estimate of a loss of 33 cents. The company incurred a loss of 67 cents per share in the prior-year quarter.
Occidental's total revenues were $5,293 million, which surpassed the Zacks Consensus Estimate of $4,923 million by 7.5%. The top line, however, decreased 19.9% from the year-ago quarter. The year-over-year decline was due to lower contribution from the Oil &Gas segment.
Occidental Petroleum Corporation Price, Consensus and EPS Surprise
Occidental Petroleum Corporation price-consensus-eps-surprise-chart | Occidental Petroleum Corporation Quote
Oil and Gas revenues for the quarter were $3,664 million, down 27.6% year over year.
Chemical revenues for the quarter were $1,088 million, up 13.1% year over year.
Midstream & Marketing revenues for the quarter were $807 million, down 2.2% year over year.
Production & Sales
Occidental’s total production volume for the first quarter was 1,117 thousand barrels of oil equivalent per day (Mboe/d), which exceeded the upper end of the guided range of 1,085-1,115 Mboe/d. Strong production volumes were attributed to higher volumes from the Permian Resources region. Permian Resources production for the first quarter was 457 Mboe/d, which was near the higher end of the guided range of 450-460 Mboe/d.
For the quarter under review, total sales volume was 1,113 Mboe/d, down 22.3% from 1,432 Mboe/d recorded in the year-ago period. The decline was due to drop in U.S. and International sales volumes.
First-quarter realized prices for crude oil improved 18.5% year over year to $55.65 per barrel on a worldwide basis. Worldwide realized natural gas liquids prices improved 79.1% from the prior-year quarter to $23.44 per barrel. Worldwide natural gas prices increased 80.1% from the year-ago quarter to $2.36 per thousand cubic feet.
Highlights of the Release
Occidental’s total expenses for the reported quarter were $5,684 million, down 28.7 year over year.
Out of its planned divestiture of $10.2 billion, the company has already completed $8.7 billion and utilized a major portion of the proceeds to lower outstanding debts.
Interest expenses for the reported quarter were up 12.2% to $395 million from $352 million in the year-ago period.
As of Mar 31, 2021, Occidental had cash and cash equivalents of $2,270 million compared with $2,008 million on Dec 31, 2020.
As of Mar 31, 2021, the company had a long-term debt (net of current portion) of $35,466 million compared with $35,745 million on Dec 31, 2020. The decrease in debt level was due to effective management of debt since the acquisition of Anadarko.
For first-quarter 2021, cash from operations was $2,135 million, up from $1,484 million in the prior-year period.
For first-quarter 2021, Occidental’s total capital expenditure was 579 million compared with $1,300 million invested in the year-ago period.
For second-quarter 2021, it expects production in the range of 1,140-1,170 Mboe/d and output from Permian Resources in the band of 490-500 Mboe/d. The company expects exploration expenses for the second quarter to be $70 million.
For 2021, Occidental expects production to be 1,140 Mboe/d and output from Permian Resources to be 485 Mboe/d. The company expects exploration expenses for 2021 to be $215 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. Out of the 2021 projected capital expenditure, $1.2 billion will be invested in the Permian region to bring new wells online.
Currently, Occidental carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Devon Energy Corp. DVN reported first-quarter 2021 adjusted earnings of 45 cents, beating the Zacks Consensus Estimate of 35 cents per share by 28.6%.
Murphy Oil Corporation MUR posted first-quarter 2021 adjusted net income of 6 cents per share. The Zacks Consensus Estimate was of a loss of 16 cents.
CNX Resources Corporation CNX reported first-quarter 2021 adjusted earnings of 36 cents per share, which surpassed the Zacks Consensus Estimate of 28 cents by 28.6%.
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