OXY reports better-than-expected first-quarter earnings. The company benefits from higher domestic realized commodity prices.
Occidental Petroleum's Q1 results show strong cash flow and earnings, with EPS beating expectations and a stable dividend, despite weaker commodity prices. OXY's production increased significantly, driven by U.S. operations, while cost reductions in the Permian Basin improved operational efficiency. Valuation remains attractive with a forward EV/EBITDA of 6x, suggesting a potential total return of ~10% over the next 12 months.
While the top- and bottom-line numbers for Occidental (OXY) give a sense of how the business performed in the quarter ended March 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Occidental Petroleum (OXY) came out with quarterly earnings of $0.87 per share, beating the Zacks Consensus Estimate of $0.73 per share. This compares to earnings of $0.65 per share a year ago.
Besides Wall Street's top -and-bottom-line estimates for Occidental (OXY), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended March 2025.
OXY's first-quarter production benefits from contributions from domestic assets. Severe weather in January and unplanned outage of the Ingleside facility will also adversely impact performance.
Beyond analysts' top -and-bottom-line estimates for Occidental (OXY), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended March 2025.
Occidental (OXY) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
In the closing of the recent trading day, Occidental Petroleum (OXY) stood at $40.35, denoting a -0.39% change from the preceding trading day.
The company is also building major growth engines outside traditional energy, including its fast-moving direct air capture (DAC) business, 1PointFive, and its highly profitable chemical division, OxyChem, which provides steady, cash-generating support across economic cycles.
I maintain a "Buy" rating on Occidental Petroleum (OXY) due to its operational efficiency, successful CrownRock integration, and strong FCF generation despite recent stock price declines. OXY's FY2024 results showed record U.S. production and cost reductions, with all business segments performing well, enhancing shareholder value. Potential DoE funding cuts for clean energy projects and lower Q1 2025 production guidance have pressured the stock, but STRATOS' progress remains a key catalyst.
Occidental Petroleum (OXY) reachead $39.83 at the closing of the latest trading day, reflecting a -0.35% change compared to its last close.