Occidental Petroleum Q3 earnings beat estimates, plans share repurchase

Occidental Petroleum Corporation (NYSE:) reported strong third-quarter earnings for 2023, outperforming consensus estimate by 32.6% with earnings of $1.18 per share. The company’s total revenues stood at $7,400 million, with oil and gas revenues contributing a significant $5,594 million. Chemical revenues and Midstream & Marketing revenues were reported at $1,309 million and $552 million respectively.

The company’s total production volume reached 1,220 thousand barrels of oil equivalent per day (Mboe/d), primarily driven by Permian segments. Total sales volume saw a 3.6% increase to 1,222 Mboe/d with domestic sales accounting for 997 Mboe/d.

However, global realized prices of and liquids experienced a decline to $80.7 per barrel and $21.04 per barrel respectively. Natural gas prices also fell to $1.92 per thousand cubic feet.

Total expenses for the third quarter were reported at $5,697 million with a noted decrease in interest expenses to $230 million. The company generated a free cash flow of $1.7 billion and implemented a share repurchase program, buying back shares worth $600 million.

As of September 30, 2023, Occidental held cash and cash equivalents of $611 million and had managed to reduce its long-term debt to $18,597 million following effective debt management strategies post the Anadarko acquisition. The capital expenditure was reported at $4,726 million and cash flow from operations at $9,069 million.

Looking ahead to the fourth quarter of 2023, Occidental projects a production of between 1,206-1,246 Mboe/d and exploration expenses of around $150 million.

In related news, Enterprise Products Partners (NYSE:) LP reported adjusted earnings per limited partner unit of 60 cents for Q3 2023.

InvestingPro Insights

Adding to the performance analysis of Occidental Petroleum Corporation, InvestingPro data and tips provide valuable insights for investors. The company’s market capitalization stands at a robust 53.26 billion USD, while it boasts a P/E ratio of 9.34, indicating a relatively low valuation compared to earnings. The adjusted P/E ratio for the last twelve months as of Q2 2023 is slightly higher at 9.54. In terms of profitability, the company has maintained a gross profit margin of 63.59% during the same period.

InvestingPro Tips emphasize that the management has been aggressively buying back shares, demonstrating their confidence in the company’s future prospects. Additionally, 13 analysts have revised their earnings upwards for the upcoming period, indicating positive sentiment around the company’s earnings potential. It’s worth noting that the company has maintained dividend payments for 50 consecutive years, underscoring its commitment to returning value to shareholders.

In addition to these insights, InvestingPro offers countless more tips and data points for investors seeking to make informed decisions.

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