Occidental Petroleum Corporation (NYSE:OXY) shares are trading higher on Thursday after the company reported fourth-quarter earnings on Wednesday after the market closed.
The stock is also gaining as oil stocks move higher with crude prices remaining elevated amid escalating geopolitical tensions involving Iran and following reports that Kinetik Holdings (NYSE:KNTK) is weighing a potential sale after receiving takeover interest from Occidental-backed Western Midstream Partners.
Earnings Snapshot
Occidental reported adjusted earnings per share of 31 cents, beating the consensus estimate of 18 cents.
Total company production of 1,481 Mboed exceeded the high end of guidance. Worldwide year-end proved reserves of 4.6 billion BOE with an all-in reserves replacement ratio of 98% and an organic reserves replacement ratio of 107%.
JPMorgan analyst Arun Jayaram maintained an Underweight rating on the stock.
Analyst Views
The analyst writes that the company’s earnings upside was driven by lower LOE costs, slightly higher production, and stronger-than-expected midstream/marketing pre-tax income.
The analyst says the fourth-quarter print is likely to be well received, featuring more capital-efficient 2026 guidance, solid reserve replacement, and strong cash flow performance.
For the first quarter, the company guided volumes of 1,405 MBoe/d (including 698 MBo/d of oil), 4%-5% below JPMe/STe, reflecting lower output across the Permian, International, and GoA, including 15 MBoe/d of weather-related downtime from Winter Storm Fern, notes the analyst.
Amid macro uncertainties, the company plans lower activity and capex, 12% below Street expectations, while oil volume guidance is only 1%-2% below consensus, adds the analyst.
Price Action: OXY shares are up 8.26% at $51.00 at the last check on Thursday.
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