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Occidental (OXY) to Report Q2 Earnings: What's in Store?

Occidental Petroleum Corporation OXY is scheduled to release second-quarter 2021 results on Aug 3. In the last reported quarter, the company delivered an earnings surprise of 54.6%.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors to Consider

Occidental’s second-quarter earnings are expected to have been driven by strong production from domestic assets. The company’s second-quarter results will likely get a boost from contribution from the Dolphin Pipeline project and AI Hosn gas processing plants.

Second-quarter earnings are also expected to have benefited from proper debt management through repayment and refinancing, which in turn are likely to have reduced capital servicing expenses of the company. Occidental is likely to have gained from cost-management initiatives.

Expectations

The Zacks Consensus Estimate for second-quarter production is pegged at 1,163 thousand barrels of oil equivalent (MBOE) per day. The company expects production in the range of 1,140-1,170 MBOE/d and output from Permian Resources within 490-500 MBOE/d.

The Zacks Consensus Estimate for the bottom line for the second quarter is pegged at a loss of 1 cent per share, indicating a 99.43% improvement from the prior-year loss.

What Our Quantitative Model Predicts

Our proven model predicts an earnings beat for Occidental this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is the case here as you see below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Occidental Petroleum Corporation Price and EPS Surprise

Occidental Petroleum Corporation Price and EPS Surprise

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

Earnings ESP: The company’s Earnings ESP is +177.89%.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Occidental currently carries a Zacks Rank #3.

Other Stocks to Consider

Here are a few other companies in the same industry that too have the right combination of elements to beat on earnings in the upcoming releases.

Berry Corporation BRY is likely to release second-quarter 2021 results on Aug 3. It has an Earnings ESP of +14.29% and sports a Zacks Rank #1.

PHX Minerals Inc. PHX is likely to release fiscal third-quarter 2021 results on Aug 5. It has an Earnings ESP of +50% and sports a Zacks Rank #1.

Rattler Midstream LP RTLR is likely to release second-quarter 2021 results on Aug 5. It has an Earnings ESP of +7.41% and has a Zacks Rank #3.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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