Occidental Q2 net income rises on higher crude prices; hikes dividend
Occidental Q2 net income rises on higher crude prices; hikes dividend
Overview
U.S. energy producer's Q2 revenue and EPS rose yr/yr, with net income at $2.8 bln
Company's oil and gas production exceeded guidance, driven by higher realized crude prices
Occidental increased its quarterly dividend by 8% to $0.28 per share
Outlook
Occidental did not provide specific guidance for the current quarter or full year
Result Drivers
HIGHER CRUDE PRICES - Co said increased realized crude prices were the primary driver of oil and gas income growth
PRODUCTION ABOVE GUIDANCE - Oil and gas production exceeded the high end of guidance, with Permian and Gulf of America units outperforming
MIDSTREAM MARGIN IMPROVEMENT - Midstream and marketing results exceeded guidance due to higher crude margins and gas transportation optimizations
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 REVENUES AND OTHER INCOME |
| $8.33 bln |
|
Q2 EPS |
| $2.75 |
|
Q2 Net Income |
| $2.80 bln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 10 "strong buy" or "buy", 15 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the oil & gas exploration and production peer group is "buy."
Wall Street's median 12-month price target for Occidental Petroleum Corp is $67.00, about 21.6% above its August 4 closing price of $55.09
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 15 three months ago
Reuters Recommended Reads
Aug 4 - Devon posts highest quarterly profit since 2022 on stronger oil prices, Coterra deal
Aug 3 - Diamondback rides on higher oil prices to top profit estimates, raise output forecast
Aug 3 - War-fueled oil rally set to lift shale profits to highest since 2022
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)