Occidental Petroleum Corporation OXY is scheduled to release third-quarter 2023 results on Nov 7 after market close. In the last reported quarter, the company delivered a negative surprise of 2.86%.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors to Consider
Occidental’s third-quarter result is likely to be boosted by an expected strong performance from its Permian Basin assets, with new wells added in the region.
The ongoing share repurchases are likely to have a positive impact on third-quarter earnings. Repayment of outstanding debts might have also reduced capital servicing costs and boosted margins.
However, Occidental’s third-quarter production volume is expected to be below 1.2 million barrels of oil equivalents per day. This drop is primarily due to weather contingencies in the Gulf of Mexico.
Expectations
Occidental expects third-quarter total production of 1,166-1,206 thousand barrels of oil equivalent per day (MBOE/d) and 568-588 MBOE/d output from Permian Resources.
The Zacks Consensus Estimate for third-quarter crude oil production is pegged at 619 thousand barrels of oil per day. For natural gas, the Zacks Consensus Estimate is pegged at 1,787 thousand cubic feet per day.
The Zacks Consensus Estimate for third-quarter earnings per share and total revenues is pinned at 89 cents per share and $7.23 billion, respectively, reflecting a year-over-year decline of 63.5% and 23.9%, respectively.
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 will see below.
Occidental Petroleum Corporation Price and EPS Surprise
Occidental Petroleum Corporation price-eps-surprise | Occidental Petroleum Corporation Quote
Earnings ESP: Occidental’s Earnings ESP is +2.11%. 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
Investors can also consider the following players from the same sector that have the right combination of elements to beat on earnings in this reporting cycle.
W&T Offshore, Inc. WTI is likely to deliver an earnings surprise when it posts third-quarter earnings on Nov 7, 2023, after market close. WTI has an Earnings ESP of +50.00% and a Zacks Rank #2.
The Zacks Consensus Estimate for WTI’s 2023 earnings implies an increase of 16.7% in the last 90 days.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Delek US Holdings DK is likely to deliver an earnings surprise when it posts third-quarter earnings on Nov 7, 2023. WTI has an Earnings ESP of +5.26% and a Zacks Rank #2.
The Zacks Consensus Estimate for DK’s 2023 earnings implies an increase of 28.6% in the last 90 days.
Par Pacific Holdings PARR is likely to deliver an earnings surprise when it posts third-quarter earnings on Nov 6, 2023, after market close. PARR has an Earnings ESP of +0.78% and a Zacks Rank #2.
The Zacks Consensus Estimate for PARR’s 2023 earnings implies an increase of 75.7% in the last 90 days.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report
W&T Offshore, Inc. (WTI) : Free Stock Analysis Report
Delek US Holdings, Inc. (DK) : Free Stock Analysis Report
Par Pacific Holdings, Inc. (PARR) : Free Stock Analysis Report
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