Occidental Petroleum Posts Q4 Earnings Beat, Here's A 'Glaring Negative'

Shares of Occidental Petroleum Corp OXY climbed in trading on Wednesday, despite a revenue miss in the fourth quarter.

Here are some key analyst takeaways.

Stephens analyst Mike Scialla reiterated an Overweight rating and price target of $71.
Raymond James analyst Mark Lear maintained a Neutral rating on the stock.

Check out other analyst stock ratings.

Stephens: Occidental Petroleum reported fourth-quarter adjusted earnings and cash flows of 80 cents per share and $3.13 per share, respectively. It beat the consensus of 68 cents per share and $2.85 per share, Scialla said. Production grew by 4% sequentially and 19% year-on-year to 1,463 MBpoed (million barrels of oil equivalent per day), 1% above Street expectations, he added.

Occidental divested another $1.2 billion-worth of properties in the first quarter of 2025. The company also achieved its $4.5 billion near-term debt reduction target seven months early, the analyst explained. Management's first-quarter guidance for total and oil production were 4% and 5% below market estimates, mainly due to weather conditions and the divestitures in the quarter, he further stated.

Raymond James: Occidental's fourth-quarter results were mostly ahead of expectations. Lear credited "stronger volumes and Oxychem and midstream beats" for driving growth. The full-year guidance for capital expenditure came in at $7.5 billion, in-line with expectations, he added.

The "glaring negative" was the oil production guidance for the first quarter, the midpoint of which stands at 703 million barrels of oil per day, down around 4% sequentially, the analyst stated. The main driver of lower volumes guide was the divestitures closing by the end of the first quarter and "expected ethane rejection in the DJ decreasing production volumes by ~21 mboe/d," he further wrote.

Price Action: Shares of Occidental Petroleum had risen by 6.30% to $51.96 at the time of publication on Wednesday.

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