Occidental Petroleum Q1 Earnings Surpass Estimates, Revenues Rise Y/Y

Occidental Petroleum Corporation OXY reported first-quarter 2025 earnings of 87 cents per share, which surpassed the Zacks Consensus Estimate of 73 cents by 19.2%. The bottom line improved 38.1% year over year. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

This improvement was due to higher domestic realized commodity prices, partially offset by lower sales volumes.

GAAP earnings in the reported quarter were 77 cents per share compared with 75 cents in the year-ago quarter.

Total Revenues of OXY

Total revenues were $6.84 billion, which lagged the Zacks Consensus Estimate of $7.14 billion by 4.3%. However, the top line improved 13.9% year over year due to strong contributions from its Oil & Gas segment and Midstream & Marketing segment.

Occidental Petroleum Corporation Price, Consensus and EPS Surprise

Occidental Petroleum Corporation price-consensus-eps-surprise-chart | Occidental Petroleum Corporation Quote

OXY’s Q1 Segmental Details

Oil and Gas revenues totaled $5.68 billion in the reported quarter, up 15.6% year over year.

Chemical revenues amounted to $1.18 billion, a tad higher year over year.

Midstream & Marketing revenues of $203 million improved 105.1% year over year.

Production & Sales of OXY

Total production volume was 1,391 thousand barrels of oil equivalent per day (Mboe/d). The metric was within the company’s production guidance of 1,370-1,410 Mboe/d.

Total sales volume was 1,391 Mboe/d, up 18.4% from the year-ago period.

OXY’s Realized Prices

Realized prices of crude oil increased 2% year over year to $71.07 per barrel on a worldwide basis. Realized natural gas liquids prices increased 19% year over year to $25.94 per barrel globally.

Natural gas prices increased 92% year over year to $2.42 per thousand cubic feet.

Highlights of OXY’s Q1 Release

Occidental reported strong first-quarter production, due to higher contributions from domestic assets. Its North America’s assets contributed 83.9% to total production. The rest came from OXY’s international operation.

OxyChem earned pre-tax income was $185 million for the first quarter of 2025. Excluding items affecting comparability, OxyChem income exceeded guidance by $15 million.

Interest and debt expenses increased 12% to $318 million from $284 million in the year-ago quarter.

Financial Position of OXY

As of March 31, 2025, Occidental had cash and cash equivalents of $2.61 billion compared with $2.13 billion as of Dec. 31, 2024.

Occidental had long-term debt (net of current portion) of $24.03 billion as of March 31, 2025, compared with $24.97 billion as of Dec. 31, 2024. The company retired $6.8 billion in debt in the last 10 months, which lowered annual interest expenses by $370 million.

OXY generated $3 billion of operating cash flow in first-quarter 2025 compared with $2.45 billion in first-quarter 2024.

Total capital expenditure was $1.98 billion in the first quarter of 2025 compared with $1.78 billion in the year-ago period.

OXY’s Guidance

For the second quarter of 2025, OXY expects production of 1,377-1,417 Mboe/d. Output from the Permian Resources segment is anticipated at 760-780 Mboe/d. Occidental expects international production volumes for second-quarter 2025 in the range of 227-233 Mboe/d.

Exploration expenses are estimated to be $105 million and interest expenses to be $275 million in the second quarter of 2025.

Zacks Rank of OXY

Occidental currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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