In This Article:
Oil driller Occidental Petroleum (OXY) published first quarter earnings figures of $0.87 in adjusted earnings per share (vs. estimates of $0.78) while revenue fell below expectations (net sales of $6.8 billion vs. analyst forecasts of $6.96 billion).
Yahoo Finance senior business reporter Ines Ferré breaks down the energy company's release and its oil production numbers ahead of the earnings call.
To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here.
Shares of Occidental Petroleum in focus following its first quarter earnings report. Yahoo finances, Inez Ferre here with the numbers.
Yeah, Julie. So, Occidental Petroleum reporting adjusted earnings per share of 87 cents. That beat at Wall Street estimates for 78 cents. Uh they're seeing their capital expenditure at 7.2 billion to 7.4 billion dollars. Uh the and they had previously seen uh that to be between 7.4 billion, 7.6 billion. So, um that is right in line with the street estimate of 7 and a half billion dollars. But look, this is a company that has been talking about reducing its debt, that's one of its main priorities. And in their slides, they're showing that um they year to date have reduced their debt by 2.3 billion dollars. It'll be interesting to see to hear in their earnings call uh whether or not there is talk about this production peak in the shale. in shale because we had Diamondback CEO yesterday that was talking about how he believes that US shale production has peaked that he was pointing to activity lower crew activity uh in in the shale area. And if that is the case, he's also talking about being decreasing this quarter because of the oil price. Uh I just got off the phone with Ed Hers earlier just before looking at this uh print. And he was telling me, look, in the Permian basin, if the oil price goes below 70, they don't want to drill more. Uh the cost of drilling has gone up, the labor costs have gone up to drill. And the gas and and the oil as you drill is getting gassier and gassier so it's more difficult. So you have to drill deeper, you have to drill more lateral. So it'll be interesting to see if there's any commentary uh about what's happening with these oil prices and the production that we're hearing about.
Yeah, definitely.
All right. Thank you, Inez. Appreciate it.
