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Occidental Petroleum Tops Q1 Earnings, Misses Revenues - Analyst Blog

Occidental Petroleum Corporation OXY reported first-quarter 2015 adjusted earnings of 4 cents per share, surpassing the Zacks Consensus Estimate of 2 cents by 100%. On a year-over-year basis, however, quarterly earnings plunged 97.7%, primarily due to lower crude oil and natural liquids (NGL) realized prices.

Occidental Petroleum Corporation - Earnings Surprise | FindTheCompany

On a GAAP basis, the company incurred a loss of 28 cents per share in the first quarter against earnings of $1.75 per share a year ago.

The variance between GAAP and adjusted earnings was due to one-time charges of $249 million, comprising mainly of asset impairment charges for certain domestic and international assets.

Total Revenues

In the quarter under review, Occidental Petroleum's total revenues were $3,089 million, lagging the Zacks Consensus Estimate by 3.9%. Revenues dropped 37.8% from $4,968 million a year ago due to lower Oil and Gas (44.2% year over year), Midstream, Marketing and Other (42.1%) and Chemical (18.0%) revenues.

Quarterly Highlights

Occidental Petroleum's average daily net oil, liquids and gas production volume increased 9.1% year over year to 645,000 barrels of oil equivalents (BOE). The upside was primarily due to higher contribution from the Permian Resources operations along with strong performance from other international assets.

The company's daily sales volume was 637,000 BOE, up 9.8% from 580,000 BOE a year ago due to higher sales volumes in the U.S. and the Middle East/North Africa. Sales volumes were lower than production volumes mainly due to the timing of liftings in Iraq.

Realized Price

Realized price for worldwide crude oil decreased 50.6% year over year to $48.50 per barrel.

Worldwide realized NGL prices declined 56.9% to $17.96 per barrel from $41.70 per barrel a year ago.

Worldwide natural gas prices went down 42.8% year over year to $1.66 per thousand cubic feet (MCF).

Financial Update

As of Mar 31, 2015, Occidental Petroleum had cash and cash equivalents of $2,153 million compared with $3,789 million as of Dec 31, 2014.

As of Mar 31, 2015, Occidental Petroleum had long-term debt of $6,139 million compared with $6,838 million as of Dec 31, 2014.

In first quarter 2015, the company's cash from operations was $561 million, down 79.2% from $2,967 million in the prior-year period.

In the first quarter, Occidental Petroleum's total capital expenditure was $1,735 million, marginally higher than $1,731 million in the year-ago period.

Guidance

Backed by strong performance from its Permian assets, Occidental Petroleum increased the production guidance for 2015. The company expects average production in 2015 to be 60,000-80,000 BOE per day higher than the 2014 rate of 591,000 BOE per day.

Other Peer Releases

Murphy Oil Corp. MUR reported first-quarter 2015 loss of $1.11 per share, wider than the Zacks Consensus Estimate of a loss of 86 cents.

Noble Energy, Inc. NBL reported adjusted earnings of 3 cents per share in the first quarter of 2015, in line with the Zacks Consensus Estimate.

Anadarko Petroleum Corp. APC reported a first-quarter 2015 adjusted loss of 72 cents per share, wider than the Zacks Consensus Estimate of a loss of 63 cents.

Zacks Rank

Occidental Petroleum currently has a Zacks Rank #3 (Hold).

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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.


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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