Why Is Occidental Petroleum Stock Gaining Tuesday?

Core Viewpoint - Occidental Petroleum Corp. reported a strong fiscal third-quarter 2025 earnings performance, exceeding market expectations for both adjusted EPS and sales, leading to a rise in share price [1][6]. Earnings Snapshot - The company reported adjusted EPS of 64 cents, surpassing the street view of 52 cents, and sales of $6.72 billion, slightly above the consensus of $6.68 billion [2]. - Total average global production reached 1,465 thousand barrels of oil equivalent per day (Mboed), exceeding the upper end of guidance [2]. - Average production in the Permian basin was 800 Mboed during the quarter [3]. - For the fourth quarter, total production is projected to be between 1,440-1,480 Mboed, with Permian production expected to be between 795-815 Mboed [3]. Analyst Views - JP Morgan's analyst Arun Jayaram noted that management is reallocating capital expenditures towards high-return Gulf of America water floods, Enhanced Oil Recovery (EOR) projects, and low-cost Permian Basin acreage [4]. - Jayaram highlighted that third-quarter production volume was 1.6% above JP Morgan estimates, driven by stronger Rockies well performance and higher Permian base production [4]. - The company lowered U.S. operating expense guidance by $20 million, with year-to-date well costs down 14% in the Permian and 12% in the Rockies [5]. - OXY raised its resource estimate by 18% to 16.5 billion barrels of oil equivalent (BBoe), reflecting upside from EOR, secondary benches, and expanded Barnett acreage [5]. - Goldman Sachs analyst Neil Mehta stated that Occidental Petroleum's adjusted EPS exceeded their estimate of 50 cents, with production slightly above forecasts [6].