Occidental Petroleum Corporation (NYSE:OXY) is gearing up to unveil its fourth-quarter 2023 results on February 14, after the market closes. Notably, the company delivered an impressive earnings surprise of 32.58% in the previous quarter.
Let’s explore the key factors likely to influence the upcoming quarterly results.
Factors to Watch
Occidental’s fourth-quarter performance is anticipated to benefit from the robust performance of its Permian Basin assets, despite facing challenges such as hailstorms in the Delaware Basin leading to power interruptions early in October.
The company’s ongoing share repurchase program is expected to have a positive impact on fourth-quarter earnings. Additionally, the repayment of outstanding debts may have reduced capital servicing costs, consequently boosting margins.
However, Occidental might have encountered increased domestic operation expenses in the fourth quarter, with costs rising to $10.50 per barrel of oil equivalent (Boe) compared to $10.20 per Boe in the third quarter. Property damage resulting from Permian storms and maintenance activities in the Gulf of Mexico assets could have contributed to this uptick in expenses.
Q4 Projections
Occidental anticipates total production to range between 1,206-1,246 thousand barrels of oil equivalent per day (MBOE/d), with Permian Resources contributing 571-591 MBOE/d to the output.
According to the Zacks Consensus Estimate, total production is expected to reach 1,237.7 MBOE/D. For natural gas, the consensus estimate stands at 1,819 thousand cubic feet per day.
Analysts project earnings per share and total revenues to come in at 74 cents and $7.14 billion, respectively. This suggests a decline of 54.1% in earnings and 14.3% in revenues compared to the year-ago levels.
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