Occidental delivered a decent quarter with revenues above market expectations but missed out on the earnings expectations of analysts. OxyChem delivered robust, strong earnings while its Permian, Rockies, International, and Gulf of Mexico teams have delivered a good operational performance. Horn Mountain West gave a better-than-expected performance. In the Delaware Basin, Occidental delivered a good quarter-to-date results, demonstrating its high quality of subsurface and inventory expertise. The Permian operations have been impacted by the lower OBO volumes and higher third-party downtime. In Texas, Delaware, Occidental recently purchased online an innovative Silvertip quite well with the highest initial oil production. Overall, the company’s Python development has outperformed expectations. Recently, the company’s Caesar-Tonga field reached the production milestone of 150 barrels of cumulative oil production. Occidental is also benefitting from the incremental production from the Al Hosn. The company collaborated with Western Midstream Partners to explore carbon capture, utilization, transportation, and sequestration opportunities. We provide the stock of Occidental with a ‘Hold’ rating with a revision in the target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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