The energy sector has been plagued by a difficult few years, with volatile oil prices, extended geopolitical tensions, and a complex dynamic as customers and governments slowly pivot towards renewable forms of generation. Debt levels have always been high inGordon is a freelance investment writer from Glasgow, Scotland. With a Masters Degree in Civil Engineering, he also works in Asset Management, and runs a financial education company called Oak Investing with a wide following across 40 countries. With a p ...

I last covered Occidental Petroleum Corporation (NYSE: OXY ) stock on 10-30-2024. That article was titled "Exxon Mobil Is Both Cheaper And Better Than Occidental Petroleum" as you can see from As you can tell, our core style is to provide actionable and unambiguous ideas from our independent research. If your share this investment style, check out Envision Early Retirement. It provides at least 1x in-depth articles per week on such ideas.We have helped our members not only to beat S&P 500 but also avoid hea ...

Warren Buffett is one of the most famous investors alive — and his reputation is well-earned. The ‘Oracle of Omaha’ has managed to outperform the wider market consistently using a level-headed, long-term approach based on value investing.Unsurprisingly, investors across the board — from lowly retail investors to high-flying hedge fund managers keep a close eye on his investments, hoping to emulate at least some of his successes.However, not all of Buffett’s investments end up being successful — the Dexter S ...

The oil industry is currently undergoing a massive consolidation wave. Sector leader ExxonMobil kicked things off by acquiring Pioneer Natural Resources in a more than $60 billion deal. Chevron followed it by agreeing to buy Hess for $60 billion. Several other oil companies also struck deals to acquire smaller rivals, including Occidental Petroleum (OXY 1.88%), which bought CrownRock in a $12 billion deal. One of the critical differences between Occidental's deal and the acquisitions of its larger peers is ...

Occidental Petroleum (OXY 1.65%) expected its acquisition of CrownRock to move the needle for investors. So far, so good for the oil giant. It delivered robust free cash flow during the third quarter, which allowed it to continue strengthening its balance sheet. Here's a closer look at the quarter and what's ahead for the oil company.Drilling down into Occidental Petroleum's third-quarter resultsOccidental Petroleum produced $977 million, or $1 per share, of adjusted net income during the third quarter. Tha ...

Financial Data and Key Metrics Changes - In Q3 2024, the company generated an adjusted profit of $1 per diluted share and a reported profit of $0.98 per diluted share, with a significant free cash flow of $1.5 billion before working capital [34][35] - The company finished the quarter with $1.8 billion of unrestricted cash, reflecting strong operational performance despite adverse weather conditions and commodity price volatility [35][36] - Domestic lease operating expenses were reported at $8.68 per barrel, the lowest since Q1 2022, indicating improved operational efficiency [37] Business Line Data and Key Metrics Changes - The Oil & Gas segment exceeded production guidance, achieving the highest quarterly U.S. production in the company's history, driven by strong new well performance and higher uptime in the Permian Basin [7][8] - The Chemicals and Midstream segments also outperformed, with the Midstream segment generating positive earnings approximately $145 million above the midpoint of guidance [15][38] - The company raised its full-year production guidance for the Permian, anticipating an additional 12,000 BOE per day in Q4, with 9,000 BOE from CrownRock assets [40][41] Market Data and Key Metrics Changes - The Delaware Basin continued to perform at an industry-leading level, with a notable well producing 1.2 million barrels of oil in the first 90 days [9] - The company reported a drop in the gas-oil ratio in the Permian, attributed to the growth in unconventional production and the integration of CrownRock assets [102][105] Company Strategy and Development Direction - The company is focused on maintaining activity levels in the CrownRock area while slightly lowering capital in other oil and gas areas, preparing for potential price declines [57][60] - The integration of CrownRock assets is expected to unlock operational efficiencies and enhance margins, with a commitment to leveraging shared infrastructure for cost savings [19][21][70] - The company is advancing its low-carbon initiatives, including the construction of the STRATOS direct air capture facility, which is on track for completion in mid-2025 [23][25] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the volatility in oil prices and the potential for a softer commodity backdrop in 2025, emphasizing a conservative approach to capital allocation [54][56] - The leadership team is optimistic about the long-term potential of the Permian Basin, expecting continued efficiency improvements and production growth from secondary benches [81][82] - The company remains committed to debt reduction, having repaid $4 billion in Q3, nearly 90% of its near-term commitment [32][33] Other Important Information - The company is targeting a capital budget of approximately $450 million for low-carbon ventures in 2025, a decrease from 2024, while the chemicals capital budget is expected to increase to $900 million [44][45] - The company has identified nearly $10 million in expected savings from water integration across assets, enhancing operational efficiency [20] Q&A Session Summary Question: Concerns about commodity outlook and capital implications - Management reviews macroeconomic factors weekly and acknowledges risks to prices in 2025, planning to maintain activity levels in CrownRock while adjusting capital in other areas as needed [54][57] Question: Deleveraging capacity and options - Management highlighted various opportunities for deleveraging, including a strong portfolio in the Permian and ongoing divestitures [62][63] Question: Oil mix in the Permian and future drilling programs - Management indicated that the oil mix may fluctuate due to the integration of CrownRock and the development of secondary benches, with a focus on maintaining production efficiency [72][75] Question: Goals for debt reduction and balance sheet outlook - Management expressed confidence in continuing debt reduction efforts regardless of commodity prices, targeting further progress in 2025 [78] Question: Direct air capture project milestones and economics - The DAC project is progressing well, with significant completion milestones expected by mid-2025, and management remains optimistic about its long-term commercial viability [84][87]

Occidental Petroleum Corporation (OXY) reported third-quarter 2024 earnings of $1 per share, which surpassed the Zacks Consensus Estimate of 80 cents by 25%. In the year-ago quarter, the company recorded earnings of $1.18 per share. GAAP earnings were 98 cents per share compared with $1.20 in the year-ago quarter.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Total Revenues of OXYTotal revenues was $7.15 billion, which lagged the Zacks Consensus Estimate of $7.40 billion by 3.4%. T ...

I analyze oil and gas companies like Occidental Petroleum and related companies in my service, Oil & Gas Value Research, where I look for undervalued names in the oil and gas space. I break down everything you need to know about these companies -- the balance sheet, competitive position and development prospects. This article is an example of what I do. But for Oil & Gas Value Research members, they get it first and they get analysis on some companies that is not published on the free site. Interested? Sign ...

Occidental Petroleum (OXY) came out with quarterly earnings of $1 per share, beating the Zacks Consensus Estimate of $0.80 per share. This compares to earnings of $1.18 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 25%. A quarter ago, it was expected that this oil and gas exploration and production company would post earnings of $0.77 per share when it actually produced earnings of $1.03, delivering a surprise of 33.77%.Over ...

Cash Flow and Capital Expenditures - Occidental generated cash flow from continuing operations of $8.2 billion and incurred capital expenditures of $5.2 billion during the first nine months of 2024[96] - Operating cash flow from continuing operations was $8.2 billion for the nine months ended September 30, 2024, down from $9.1 billion in 2023, primarily due to working capital cash uses and lower realized pricing in the chemical segment[128] - Net cash used by investing activities was $12.8 billion for the nine months ended September 30, 2024, compared to $5.0 billion in 2023, including $8.8 billion for the CrownRock Acquisition[129] - Capital expenditures were approximately $5.2 billion for the nine months ended September 30, 2024, up from $4.7 billion in 2023, driven by the construction of the STRATOS DAC facility and increased activities in the domestic oil and gas segment[129] Debt and Financing - Occidental issued $9.7 billion in new debt in July 2024 and assumed $1.2 billion of existing CrownRock debt in August 2024[97] - Occidental repaid $4.0 billion of debt in the three months ended September 30, 2024[97] - Interest and debt expense increased to $848 million in YTD 2024 from $698 million in YTD 2023, due to higher long-term debt for the CrownRock Acquisition[110] - Occidental's net cash provided by financing activities was $5.0 billion for the nine months ended September 30, 2024, including $9.6 billion from debt issuance and $571 million from common stock issuance[130] - Occidental repaid $4.0 billion of debt in the nine months ended September 30, 2024[130] - Occidental has debt maturities of $1.5 billion in 2025, $4.1 billion in 2026, $1.5 billion in 2027, and $17.8 billion thereafter[130] Dividends and Share Repurchases - Occidental declared dividends to common shareholders of $606 million or $0.66 per share during the nine months ended September 30, 2024[99] - Occidental has approximately $1.2 billion remaining under its share repurchase program authorized in 2023[131] Asset Sales and Gains - Occidental sold non-core assets in the Powder River Basin and certain Delaware Basin assets for combined net proceeds of $779 million in Q3 2024[101] - Occidental recognized a pre-tax loss of $479 million on the asset sales in Q3 2024[101] - Occidental sold 19.5 million of its limited partner units in WES for proceeds of $697 million resulting in a pre-tax gain of $489 million in Q3 2024[101] - Gains on sales of assets for YTD 2024 included $779 million from non-core asset sales and a $489 million pre-tax gain from selling 19.5 million WES units[112] Net Income and Earnings - Net income attributable to common stockholders was $964 million for the three months ended September 30, 2024, a 3% decrease compared to the previous quarter[104] - Net income per share attributable to common stockholders was $0.98 for the three months ended September 30, 2024, a 5% decrease compared to the previous quarter[104] - Net income for Q3 2024 decreased compared to Q2 2024 due to lower crude oil prices, higher interest expense, and lower midstream earnings, partially offset by increased sales volumes from the CrownRock Acquisition[108] - Oil and gas segment earnings decreased to $1.2 billion in Q3 2024 from $1.6 billion in Q2 2024, primarily due to lower domestic crude oil prices[116] - Oil and gas segment earnings were $4.0 billion for the nine months ended September 30, 2024, compared to $4.7 billion for the same period in 2023, with a slight decrease due to lower domestic gas prices[117] - Chemical segment earnings for the nine months ended September 30, 2024 were $854 million, down from $1.3 billion in 2023, primarily due to lower realized pricing across most product lines[121] - Midstream and marketing segment earnings for the nine months ended September 30, 2024 were $714 million, compared to segment losses of $158 million in 2023, driven by higher gas marketing margin and equity method investment income[124] Sales Volumes and Prices - The average WTI price per barrel for the three months ended September 30, 2024 was $75.09, compared to $80.56 for the three months ended June 30, 2024[94] - Net sales for YTD 2024 decreased to $19.965 billion compared to $21.085 billion in YTD 2023, primarily due to lower chemical and domestic gas prices[111] - Oil and gas segment sales volumes increased to 1,411 Mboe/day in Q3 2024 from 1,260 Mboe/day in Q2 2024, driven by higher U.S. oil and NGL production[114] - Average daily sales volumes increased by 151 Mboe/d in Q3 2024 compared to Q2 2024, driven by the CrownRock Acquisition and production increases in the Permian Basin[116] Segment Performance - Midstream and marketing segment income increased to $709 million in YTD 2024 from a loss of $50 million in YTD 2023, driven by asset sales gains and higher gas marketing margins[106][109] - Depreciation, depletion, and amortization expenses increased to $5.394 billion in YTD 2024 from $5.142 billion in YTD 2023, primarily due to higher Permian Basin sales volumes[110][112] - Income from equity investments and other increased to $709 million in YTD 2024 from $391 million in YTD 2023, driven by asset sales gains and higher WES operating income[110][112] - Chemical segment costs of sales increased to $2.369 billion in YTD 2024 from $2.218 billion in YTD 2023, reflecting higher production costs[110] Acquisition and Related Costs - Acquisition-related costs for YTD 2024 totaled $141 million, primarily related to the CrownRock Acquisition[106] Tax and Liquidity - Worldwide effective tax rate was 28% for the three months ended September 30, 2024, consistent with the same period in 2023[125] - Occidental's sources of liquidity as of September 30, 2024 included $1.8 billion of cash and cash equivalents and $4.15 billion of borrowing capacity under its RCF[127] Environmental and Legal - Occidental's environmental compliance costs have generally increased over time and are expected to rise in the future[132] - Occidental accrues reserves for outstanding lawsuits, claims, and proceedings when probable and reasonably estimable[135]