Occidental Petroleum Q3 Earnings Preview: A Cautious Tone Amid Debt Woes
Debt concerns loom over Occidental Petroleum as it prepares to release its Q3 earnings.
Occidental Petroleum Corporation (NYSE: OXY) is scheduled to report its third-quarter financial results on November 1, 2023, after the market closes. Analysts expect the company to post earnings per share (EPS) of $2.05, down from $3.16 in the same period last year.
Occidental Petroleum has been under pressure due to its high debt levels, which stood at $37 billion at the end of June 2023. The company's debt-to-equity ratio of 1.2 is well above the industry average of 0.5.
The company's debt woes have raised concerns among investors, who are worried that Occidental Petroleum may have to cut its dividend or sell assets to reduce its debt load.
In addition to its debt concerns, Occidental Petroleum is also facing headwinds from the volatile oil market. Oil prices have been on a downward trend in recent months, and this has weighed on the company's earnings.
Analysts will be closely watching Occidental Petroleum's Q3 results for any signs of improvement in its financial performance. If the company can show that it is making progress in reducing its debt and improving its profitability, this could help to ease investor concerns.
Occidental Petroleum's Key Metrics to Watch
- Earnings per share (EPS)
- Revenue
- Debt-to-equity ratio
- Cash flow from operations
- Capital expenditures
Analysts' Expectations
- Analysts expect Occidental Petroleum to report EPS of $2.05, down from $3.16 in the same period last year.
- Analysts expect Occidental Petroleum to report revenue of $10.5 billion, down from $11.4 billion in the same period last year.
- Analysts expect Occidental Petroleum's debt-to-equity ratio to remain elevated at around 1.2.
Conclusion
Occidental Petroleum is facing a number of challenges, including high debt levels and a volatile oil market. Investors will be closely watching the company's Q3 results for any signs of improvement in its financial performance. If the company can show that it is making progress in reducing its debt and improving its profitability, this could help to ease investor concerns.
