Occidental Petroleum (OXY) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term. Over the past month, shares of this oil and gas exploration and production company have returned -6.9%, compared to the Zacks S&P 500 composite's +6.1% change. During this period, the Zacks Oil and Gas - Integrated - United States industry, which Occidental falls in, has lost 5.8%. The key question now is: What ...

The company delivered solid results, despite lower oil and gas prices.Occidental Petroleum's (OXY -2.14%) fortunes largely depend on oil and gas prices. Higher prices boost its profits, while sinking prices weigh on its earnings. The latter was the case in the first quarter. However, the oil company sees several catalysts on the horizon that could boost its earnings in the future. Here's a look at its recent quarter and why it's so optimistic about the future. Drilling down into Occidental Petroleum's first ...

Financial Data and Key Metrics Changes - In Q1 2024, the company generated an adjusted profit of $0.63 per diluted share and a reported profit of $0.75 per diluted share, with the difference primarily due to a litigation settlement gain and gains on sales included in equity income [44] - The company generated over $2.4 billion in operating cash flow before working capital, with free cash flow exceeding $700 million despite third-party outage impacts [22][29] - The company exited Q1 with nearly $1.3 billion of unrestricted cash and anticipates approximately $180 million of annualized incremental cash flow from interest savings through debt repayment [28][27] Business Line Data and Key Metrics Changes - The oil and gas business delivered robust production results, offsetting an extended third-party outage, with production guidance for Q2 expected to increase to 1.23 million to 1.27 million BOE per day [20][30] - The midstream business significantly outperformed guidance, driven by gas marketing optimization and capturing value from regional pricing disparities [25][38] - OxyChem benefited from improved demand for marketed products, including PVC and vinyl, contributing to cash flow diversification [39] Market Data and Key Metrics Changes - The company noted that lower gas prices negatively impacted some areas, but OxyChem benefited from reduced energy costs, positioning the midstream teams to capitalize on gas marketing opportunities [32] - The company anticipates modest price improvements in the chemicals business during Q2, following a strong start in Q1 [32] Company Strategy and Development Direction - The company plans to continue deleveraging through a $4.5 billion to $6 billion divestiture program, with proceeds aimed at reducing principal debt to $15 billion or below [45][46] - The CrownRock acquisition is expected to close in Q3 2024, enhancing the company's production capabilities and cash flow [36][126] - The company is focused on operational excellence and capital efficiency, with plans to optimize well design and reduce costs [24][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving production targets despite challenges, highlighting improvements in operational efficiencies and capital intensity [67][71] - The management team noted that the current inflationary environment and weak demand from China are impacting pricing, but they expect recovery in demand and prices beyond 2024 [77][79] - The company is optimistic about the future, with a focus on expanding resilient cash flow and enhancing shareholder value [42][43] Other Important Information - The company is advancing its first direct air capture plant, STRATOS, and has secured multiple carbon dioxide removal credit agreements [42] - The company is committed to achieving cash flow improvements independent of commodity cycles, with expectations of over $1 billion in cash flow enhancements [41] Q&A Session Summary Question: What is the company's perspective on the market for non-core asset sales? - Management indicated high interest in the divestiture program and is committed to achieving the $4.5 billion to $6 billion target within 18 months of closing [62][88] Question: How does the company view the performance of the midstream business? - Management noted that the midstream business is well-positioned to capture opportunities and has been performing well due to effective gas marketing strategies [72][74] Question: Can you provide insights on the performance of the Delaware and DJ Basins? - Management highlighted strong performance in both basins, with unique approaches to subsurface aspects and stimulation design contributing to improved well performance [58][60] Question: What are the expectations for the CrownRock acquisition? - Management confirmed that the acquisition is on track to close in Q3 2024 and will enhance production capabilities [126] Question: How does the company view the impact of the new production fee in Colorado? - Management believes the fee is manageable and will not overly burden operations, viewing it as a positive step for both the state and the industry [127][128]

$0 $1,000 2024 2025 2026 2027 Incremental FCF ($ MM) ~$325 MM ~$400 MM ~$180 MM ~$240 MM 05.08.24 First Quarter Earnings Conference Call CAUTIONARY STATEMENTS 2 Forward-looking statements This presentation contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to statements about Occidental Petroleum Corporation's ("Occidental" or "Oxy") expectations, beliefs, plans or forecasts. Forward-look ...

Occidental Petroleum Corporation (OXY) reported first-quarter 2024 earnings of 65 cents per share, which surpassed the Zacks Consensus Estimate of 56 cents by 16.1%. In the year-ago quarter, the company recorded earnings of $1.09.GAAP earnings was 75 cents compared with $1 in the year-ago quarter.Total RevenuesTotal revenues came in at $6.01 billion, which lagged the Zacks Consensus Estimate of $6.66 billion by 9.8%. The top line declined 17.2% year over year.Segmental DetailsOil and Gas revenues totaled $4 ...

Occidental Petroleum (OXY) came out with quarterly earnings of $0.65 per share, beating the Zacks Consensus Estimate of $0.56 per share. This compares to earnings of $1.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 16.07%. A quarter ago, it was expected that this oil and gas exploration and production company would post earnings of $0.74 per share when it actually produced earnings of $0.74, delivering no surprise.Over th ...

Part I [Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents Occidental's unaudited consolidated financial statements for Q1 2024, showing decreased net income and operating cash flow, with stable total assets [Consolidated Condensed Balance Sheets](index=4&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) Occidental's total assets slightly increased to $74.28 billion as of March 31, 2024, with total equity rising to $30.97 billion Balance Sheet Summary (in millions) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $8,345 | $8,375 | | **Net Property, Plant and Equipment** | $58,763 | $58,529 | | **Total Assets** | **$74,277** | **$74,008** | | **Total Current Liabilities** | $8,812 | $9,148 | | **Long-Term Debt, Net** | $18,545 | $18,536 | | **Total Liabilities** | $43,310 | $43,659 | | **Total Equity** | **$30,967** | **$30,349** | [Consolidated Condensed Statements of Operations](index=6&type=section&id=Consolidated%20Condensed%20Statements%20of%20Operations) Net sales decreased to $5.98 billion in Q1 2024, resulting in net income of $718 million, including a $182 million gain from discontinued operations Statements of Operations Summary (in millions, except per-share amounts) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Net Sales** | $5,975 | $7,225 | | **Income Before Income Taxes** | $1,010 | $1,734 | | **Net Income** | $888 | $1,263 | | **Net Income Attributable to Common Stockholders** | $718 | $983 | | **Diluted EPS** | $0.75 | $1.00 | [Consolidated Condensed Statements of Cash Flows](index=8&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) Operating cash flow decreased to $2.01 billion in Q1 2024, while investing activities used $1.81 billion and financing activities used $328 million Cash Flow Summary (in millions) | Cash Flow Category | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $2,007 | $2,870 | | **Net Cash used by Investing Activities** | $(1,810) | $(1,598) | | **Net Cash used by Financing Activities** | $(328) | $(1,080) | | **Net (Decrease) / Increase in Cash** | $(131) | $192 | [Notes to Consolidated Condensed Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Condensed%20Financial%20Statements) Notes detail the pending $12.0 billion CrownRock acquisition, $19.75 billion total debt, $1.0 billion environmental liabilities, and a $182 million arbitration gain - Occidental entered into an agreement to acquire CrownRock L.P. for approximately **$12.0 billion**, to be financed through new debt, equity issuance, and assumption of existing debt[43](index=43&type=chunk) - Total debt and finance leases stood at **$19.75 billion** as of March 31, 2024, with **$1.1 billion** in maturities due within the next 12 months[39](index=39&type=chunk)[40](index=40&type=chunk) - A settlement in the Andes Arbitration case was reached on April 5, 2024, resulting in a **$182 million gain**, net of taxes, recorded in discontinued operations[87](index=87&type=chunk) - Total environmental remediation liabilities were **$1.0 billion** as of March 31, 2024, with a significant portion related to the former Diamond Shamrock Chemicals Company and the Diamond Alkali Superfund Site (DASS)[63](index=63&type=chunk)[65](index=65&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 performance, noting decreased net income due to lower volumes and prices, while highlighting strong liquidity and 2024 strategic priorities [Current Business Outlook](index=27&type=section&id=Current%20Business%20Outlook) Occidental's 2024 priorities focus on maximizing cash flow, maintaining production, reducing leverage, and completing the CrownRock Acquisition, with $2.0 billion operating cash flow in Q1 - Key 2024 priorities include maintaining production, delivering a growing dividend, reducing long-term financial leverage, and completing the CrownRock Acquisition[110](index=110&type=chunk) - The company's long-term debt is rated investment grade by Moody's (Baa3) and Fitch (BBB-), and BB+ by S&P, with **$1.1 billion** of debt maturities due in the next 12 months[109](index=109&type=chunk) - In Q1 2024, Occidental declared common stock dividends of **$197 million**, or **$0.22 per share**[110](index=110&type=chunk) [Consolidated Results of Operations and Items Affecting Comparability](index=28&type=section&id=Consolidated%20Results%20of%20Operations%20and%20Items%20Affecting%20Comparability) Net income attributable to common stockholders decreased to $718 million in Q1 2024, impacted by lower volumes, prices, and chemical results, alongside a $182 million gain and $56 million in acquisition costs Net Income by Segment (in millions) | Segment | Q1 2024 | Q4 2023 | Q1 2023 | | :--- | :--- | :--- | :--- | | Oil and gas | $1,238 | $1,572 | $1,640 | | Chemical | $254 | $250 | $472 | | Midstream and marketing | $(33) | $182 | $2 | | **Net Income Attributable to Common Stockholders** | **$718** | **$1,029** | **$983** | - Items affecting comparability in Q1 2024 included a **$182 million gain** from discontinued operations, a **$91 million derivative loss** in midstream, and **$56 million** in corporate acquisition-related costs for the CrownRock deal[112](index=112&type=chunk) [Segment Results of Operations](index=31&type=section&id=Segment%20Results%20of%20Operations) Oil and Gas earnings decreased to $1.2 billion, Chemical earnings fell to $254 million, and Midstream and Marketing reported a $33 million loss, driven by lower volumes, prices, and margins Total Sales Volumes (Mboe/d) | Period | Q1 2024 | Q4 2023 | Q1 2023 | | :--- | :--- | :--- | :--- | | **Total Sales Volumes** | 1,175 | 1,230 | 1,214 | Average Realized Prices | Product | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Worldwide Oil ($/Bbl)** | $76.04 | $74.22 | | **Worldwide NGL ($/Bbl)** | $22.14 | $24.41 | | **Worldwide Natural Gas ($/Mcf)** | $1.68 | $2.76 | - The decrease in oil and gas sales volumes was primarily due to a third-party shut-in of production in the Eastern Gulf of Mexico, which has since resumed[128](index=128&type=chunk)[130](index=130&type=chunk) - The Chemical segment's earnings decline was driven by lower caustic soda prices, though partially offset by improved demand and lower input costs[134](index=134&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) Occidental maintains strong liquidity with $1.3 billion cash and a $4.0 billion credit facility, planning to finance the CrownRock acquisition with new debt and a $4.5-6.0 billion divestiture program - Sources of liquidity include **$1.3 billion** of cash and cash equivalents and a **$4.0 billion** undrawn revolving credit facility[141](index=141&type=chunk) - Financing for the CrownRock Acquisition is secured through a **$5.3 billion** bridge loan and **$4.7 billion** in term loans, with plans to repay at least **$4.5 billion** of debt within 12 months post-closing[149](index=149&type=chunk) - A divestiture program of **$4.5 billion to $6.0 billion** is planned in connection with the CrownRock Acquisition[150](index=150&type=chunk) - Approximately **$1.2 billion** remains under the company's share repurchase program as of March 31, 2024[151](index=151&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk exposures were reported for Q1 2024 compared to the 2023 Form 10-K disclosures - There were no material changes in market risk disclosures during the first quarter of 2024[157](index=157&type=chunk) [Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Occidental's disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting - Management concluded that disclosure controls and procedures were effective as of March 31, 2024[158](index=158&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[159](index=159&type=chunk) Part II [Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) Information on legal proceedings, including a $1 million disclosure threshold for environmental cases, is referenced in Note 9 of the financial statements - For information on legal proceedings, the report refers to Note 9 of the Consolidated Condensed Financial Statements[160](index=160&type=chunk) [Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) No material changes were reported for risk factors compared to those disclosed in the 2023 Annual Report on Form 10-K - There have been no material changes from the risk factors disclosed in the 2023 Form 10-K[161](index=161&type=chunk) [Other Information](index=36&type=section&id=Item%205.%20Other%20Information) No directors or Section 16 officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q1 2024 - No directors or Section 16 officers adopted or terminated any Rule 10b5-1 trading arrangements during Q1 2024[162](index=162&type=chunk) [Exhibits](index=37&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including incentive plans, credit agreements, and CEO/CFO certifications

PRESS RELEASE Occidental Announces 1st Quarter 2024 Results HOUSTON — May 7, 2024 — Occidental (NYSE: OXY) today announced net income attributable to common stockholders for the first quarter of 2024 of $718 million, or $0.75 per diluted share, and adjusted income attributable to common stockholders of $604 million, or $0.63 per diluted share. "Operational excellence is fundamental to everything we do at Occidental, and our teams delivered at a high level across all segments during the first quarter of 2024 ...

Occidental Petroleum Corporation (OXY) is scheduled to release first-quarter 2024 results on May 7, after market close. In the last four reported quarters, the company delivered an earnings surprise of 3.39%, on average.The Zacks Consensus Estimate for earnings is pegged at 56 cents per share on revenues of $6.7 billion. The top and bottom-line estimates suggest a decline of 7.7% and 48.6%, respectively, from a year ago.Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (St ...

Buffett's holding company, Berkshire Hathaway, is betting big on Occidental Petroleum stock.Warren Buffett isn't shy about making big bets. Within Berkshire Hathaway's portfolio of publicly traded stocks, just 10 positions comprise more than 90% of its invested capital. One of those positions is Occidental Petroleum (OXY -0.42%). Buffett and Berkshire are betting on this company in a far greater way than most investors realize.Buffett and Berkshire are confidentAccording to the most recent filings, Berkshir ...