Shares of Occidental Petroleum (NYSE: OXY) fell about 1% in pre-market trading on Wednesday after the oil and gas giant unveiled production forecasts that fell short of Wall Street expectations.
The Houston-based company expects first-quarter production between 1.370 million and 1.410 million barrels of oil equivalent per day (MMboepd)—below analysts’ estimates of 1.43 MMboepd. Full-year production guidance of 1.385 MMboepd to 1.445 MMboepd also missed consensus estimates.
Meanwhile, Occidental set its 2025 capital budget at $7.4 billion to $7.6 billion, slightly above the anticipated $7.4 billion.
In a note to clients, Mizuho said,
“[W]e suspect investors may focus on a 2025 outlook that calls for [roughly] 2.3% less volumes and [about] 1.3% more capex compared to latest Street estimates.”
The analysts added that attention is also focused on Occidental’s plans to divest some of its upstream assets in deals worth $1.2 billion to unnamed buyers, set to close by the end of the first quarter. These transactions are part of the company’s strategy to reduce its debt load.
For the fourth quarter, Occidental Petroleum (NYSE: OXY) reported adjusted earnings of $0.80 per share on revenue of $6.84 billion, beating the expected $0.73 EPS but missing revenue estimates of $6.98 billion.
The company also reported a notable 18.6% year-over-year increase in total average global production, reaching 1.46 MMboepd, up from 1.234 MMboepd in the same period last year. Additionally, Occidental raised its quarterly dividend by 9% to $0.24 per share.
