Occidental Petroleum Corporation OXY reported second-quarter 2015 adjusted earnings of 21 cents per share, in line with the Zacks Consensus Estimate. On a year-over-year basis, quarterly earnings plunged 84.8%, primarily due to lower crude oil and natural liquids (NGL) realized prices.
On a GAAP basis, the company reported earnings of 23 cents per share in the second quarter against $1.82 per share a year ago.
Total Revenues
Occidental Petroleum's total revenue was $3,469 million, lagging the Zacks Consensus Estimate of $3,899 million by 11%. Revenues dropped 32.4% from $5,133 million a year ago due to lower Oil and Gas (36.8% year over year), Chemical (17.1%) and Midstream, Marketing and Other (33.2%) revenues.
Quarterly Highlights
Occidental Petroleum’s average daily net oil, liquids and gas production volume increased 13.4% year over year to 658,000 barrels of oil equivalents (BOE). The upside was primarily due to higher contribution from the Permian Resources operations, partially offset by lower oil and natural gas production in the Midcontinent and Other regions.
The company’s daily sales volume was 657,000 BOE, up 13.5% from 579,000 BOE a year ago.
Realized Price
Realized price for worldwide crude oil decreased 45.1% year over year to $54.55per barrel.
Worldwide realized NGL prices declined 56% to $18.06per barrel from $40.98per barrel a year ago.
Worldwide natural gas prices went down 44.8% year over year to $1.48 per thousand cubic feet (MCF).
Financial Position
As of Jun 30, 2015, Occidental Petroleum had cash and cash equivalents of $2,756 million compared with $2,391 million as of Jun 30, 2014.As of Jun 30, 2015, Occidental Petroleum had long-term debt (net of current portion) of $6,880 million compared with $6,835 million as of Jun 30, 2014.
In second-quarter 2015, the company’s cash from operations was $811 million, down 64.3% from $2,274 million in the prior-year period.Occidental Petroleum’s total capital expenditure was $1,488 million in the quarter, compared with $2,001 million in the year-ago period.
Peer Releases
Hess Corp. HES reported adjusted second-quarter 2015 loss from continuing operation of 52 cents per share, narrower than the Zacks Consensus Estimate of a loss of70 cents.
ConocoPhillips COP reported adjusted earnings of 7 cents per share in the second quarter of 2015, beating the Zacks Consensus Estimate of 5 cents.
Marathon Petroleum Corp. MPC reported a second-quarter 2015 adjusted earnings of $1.51, below the Zacks Consensus Estimate of $1.78.
Zacks Rank
Occidental Petroleum currently has a Zacks Rank #3 (Hold).
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