Occidental Petroleum (OXY) has announced mixed first-quarter financial results.
The oil producer announced earnings per share (EPS) of $0.87 for the quarter ended March 31. That topped the consensus estimate among analysts of $0.78. The company’s revenue in the period totaled $6.80 billion, which fell short of Wall Street forecasts that called for sales of $6.96 billion.
Management said that the quarterly profit was helped by higher crude oil production and favorable oil and natural gas prices. Brent crude oil, the international standard, averaged $74.98 a barrel during this year’s first quarter, while U.S. natural gas prices hit a two-year high on March 10.
Occidental Petroleum’s net income. Source: Main Street Data
Paying Down Debt
Occidental Petroleum’s results got a big lift from natural gas prices. The company said that its domestic realized price for total natural gas production rose 92% to $2.42 per thousand cubic feet. The company’s realized price for natural gas liquids (NGL) was $25.94 a barrel, up 19% quarter-over-quarter.
Management also said that they lowered the company’s debt load by $2 billion during Q1 of this year. Occidental Petroleum had $25.3 billion in debt at the end of 2024, a figure that has been steadily growing in recent years. Executives at Occidental have made paying down the company’s debt a priority for this year and moving forward.
OXY stock has fallen 21% this year.
Is OXY Stock a Buy?
The stock of Occidental Petroleum has a consensus Hold rating among 20 Wall Street analysts. That rating is based on four Buy, 15 Hold, and one Sell recommendations issued in the last three months. The average OXY price target of $50 implies 27.98% upside from current levels. These ratings are likely to change after the company’s financial results.
