Occidental Petroleum Q2 Earnings Surpass, Revenues Miss Estimates
GAAP earnings in the reported quarter were 26 cents per share compared with $1.03 in the year-ago quarter. The difference between GAAP and non-GAAP earnings was due to a 13-cent impact from after-tax non-core adjustments.
Total Revenues of OXY
Total revenues were $6.45 billion, which missed the Zacks Consensus Estimate of $6.47 billion by 0.3%. The top line also lagged 6.2% year over year due to softer contributions from its Oil & Gas segment and Chemical segment.
OXY's Q2 Segmental Details
Oil and Gas revenues totaled $5 billion in the reported quarter, down 8.4% year over year.
Chemical revenues amounted to $1.2 billion, down 3.7% year over year.
Midstream & Marketing revenues of $426 million improved 51.1% year over year.
Production & Sales of OXY
Total production volume was 1,400 thousand barrels of oil equivalent per day (Mboe/d). The metric was within the company's guidance of 1,377-1,417 Mboe/d.
Total sales volume was 1,397 Mboe/d, up 10.9% from the year-ago period.
OXY's Realized Prices
Realized prices of crude oil dropped 20.2% year over year to $63.76 per barrel on a worldwide basis. Realized natural gas liquids prices dropped 2.4% year over year to $20.71 per barrel globally.
Natural gas prices increased 146.3% year over year to $1.33 per thousand cubic feet.
Highlights of OXY's Q2 Release
Courtesy of operational efficiency, Occidental was able to reduce the mid-point of 2025 capital guidance by $100 million and international operating costs by $50 million.
Occidental, through operational efficiency, in the first half of 2025 was able to reduce Delaware Basin drilling duration per well by 20% from 2024 levels, resulting in a 14% reduction in per-well costs.
Sequential improvement in Midstream and Marketing segment's performance was due to higher gas marketing margins from transportation capacity optimization in the Permian and higher sulfur prices at Al Hosn.
Interest and debt expenses increased 9.5% to $276 million from $252 million in the year-ago quarter.
Financial Position of OXY
As of June 30, 2025, Occidental had cash and cash equivalents of $2.33 billion compared with $2.13 billion as of Dec. 31, 2024.
Occidental had long-term debt (net of current portion) of $23.34 billion as of June 30, 2025, compared with $24.97 billion as of Dec. 31, 2024. The company retired $7.5 billion in debt in the last 13 months, which lowered annual interest expenses by $410 million.
OXY generated $2.96 billion of operating cash flow in second-quarter 2025 compared with $2.39 billion in second-quarter 2024.
Total capital expenditure was $3.9 billion in the first half of 2025 compared with $3.55 billion in the year-ago period.
OXY's Guidance
For the third quarter of 2025, OXY expects production of 1,415-1,455 Mboe/d. Output from the Permian Resources segment is anticipated at 779-799 Mboe/d. Occidental expects international production volumes for third-quarter 2025 in the range of 239-245 Mboe/d.
Exploration expenses are estimated to be $70 million and interest expenses to be $285 million in the third quarter of 2025.
For 2025, OXY expects production of 1,400-1,430 Mboe/d. Output from the Permian Resources segment is anticipated at 768-784 Mboe/d. Occidental expects international production volumes for third-quarter 2025 in the range of 233-237 Mboe/d.
Capital expenditure for 2025 is expected to be in the range of $7.1 billion to $7.3 billion.
Zacks Rank of OXY
Occidental currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Recent Releases
Devon Energy Corp. DVN reported second-quarter 2025 earnings per share (EPS) of 84 cents, beating the Zacks Consensus Estimate of 83 cents by 1.2%.
DVN's long-term (three-to-five years) earnings growth rate is currently pinned at 4.26%. The Zacks Consensus Estimate for 2025 EPS is pegged at $4.14, indicating a year-over-year decline of 14.11%.
TotalEnergies SE TTE reported second-quarter 2025 operating earnings of $1.57 (€1.38) per share, which missed the Zacks Consensus Estimate of $1.62 by 3.08%.
TTE's long-term earnings growth rate is currently pinned at 8.42%. The Zacks Consensus Estimate for 2025 EPS is pegged at $6.83, indicating a year-over-year decline of 12.1%.
Chevron Corporation CVX reported adjusted second-quarter earnings per share of $1.77, beating the Zacks Consensus Estimate of $1.70.
CVX's long-term earnings growth rate is currently pinned at 8.74%. The Zacks Consensus Estimate for 2025 EPS is pegged at $7.51, indicating a year-over-year decline of 25.27%.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See "2nd Wave" AI stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Devon Energy Corporation (DVN): Free Stock Analysis Report
Chevron Corporation (CVX): Free Stock Analysis Report
TotalEnergies SE Sponsored ADR (TTE): Free Stock Analysis Report
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
6 hours ago
- Globe and Mail
3 Reasons to Buy Carnival Stock Like There's No Tomorrow
Key Points Carnival's revenue continues to reach record levels, with the business benefiting from strong demand for cruise travel. Rising profits have helped the management team reduce the company's debt burden. Even though the stock has rocketed higher, investors will be drawn to the current valuation. 10 stocks we like better than Carnival Corp. › Carnival (NYSE: CCL) continues sailing in the right direction, something its shareholders have become extremely optimistic about. That's not a surprise, given that the cruise line business was decimated by the COVID-19 pandemic. However, the company is on much better footing these days as it serves robust demand from consumers. In the past 12 months, shares have soared 104% (as of Aug. 6), showcasing heightened bullishness. Despite this monster performance, here are three reasons why investors should still consider buying this travel stock like there's no tomorrow. Durable demand Carnival's business has benefited from tremendous momentum. During the fiscal 2025 second quarter (ended May 31), the company reported record revenue of $6.3 billion. This figure was up 9.5% year over year and 164% higher than the same period of fiscal 2022. There's clearly strong demand from travelers. Carnival had a whopping $8.5 billion in customer deposits in Q2, a record. Net yields, a measure of a cruise line's pricing power, came in at a record $200.07, after increasing by 7.2% during the second quarter. This was "driven by close-in strength in ticket prices and continued strong onboard spending," CFO David Bernstein said on the Q2 2025 earnings call. The demand for Carnival has been impressive in the years following the pandemic's disruption. Investors might think that the good times will come to an end soon. While the rapid growth the business has registered won't continue indefinitely, there's still reason to remain optimistic over the long term. The cruise industry faces some favorable tailwinds. For instance, younger travelers are more interested in these vacations. There are also more first-time passengers coming aboard. As it pushes to capture the opportunity ahead, Carnival is investing in building new cruise ships. It just opened a new private destination, called the Celebration Key, in July. What's more, Carnival is upgrading its rewards program, which will launch in 2026. This can boost customer loyalty and drive repeat cruise trips. Financial improvements During the pandemic, Carnival was forced to pause its operations. To survive the revenue hit, management had to take on more debt to fund the business. It's understandable if, at the time, investors were worried that Carnival would never get out of its predicament. With each passing quarter these days, the company is making substantial progress when it comes to its financial situation. During Q2, Carnival's operating income increased 66.8% year over year to $934 million. This was another record. To its credit, the business is starting to benefit from being able to better leverage its costs as revenue rises. Cruise and tour operating expenses were up just 2.3% year over year during the second quarter. With profitability showing major improvements, Carnival has been able to clean up its balance sheet as well. It ended Q2 with $27.3 billion of long-term debt, a balance that has been reduced by 20% in the past three years. The company's credit rating was also upgraded by two major agencies, which is a vote of confidence. Carnival's upside Carnival's stock has been a huge winner. However, the valuation is still compelling for new investors, even though the company is operating at a very high level these days. The price-to-earnings (P/E) ratio of 15.8 is no doubt cheap, representing a 36% discount to the overall S&P 500 index. Should the P/E multiple get closer to the benchmark's level, there is sizable upside for patient investors. Carnival's strong demand, improving financials, and attractive valuation are three reasons to buy the stock like there's no tomorrow. Should you invest $1,000 in Carnival Corp. right now? Before you buy stock in Carnival Corp., consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Carnival Corp. wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025
Globe and Mail
6 hours ago
- Globe and Mail
The Great Flattening is a quiet evolution as middle managers decline
This is the weekly Work Life newsletter. If you are interested in more careers-related content, sign up to receive it in your inbox. Have you noticed fewer rungs on the corporate ladder lately? For the last few years, as companies invest more capital into artificial intelligence, Big Tech has been cutting layers of management in what's become known as the 'Great Flattening.' Now, new data from Gusto, which provides payroll and HR solutions, shows small and mid-sized businesses (SMBs) are following suit and it's reshaping the way teams are structured, developed and led. From 2022 to 2024, the number of individual contributors per people manager at SMBs has doubled. Back in 2019, managers typically oversaw about three direct reports. Now, that number is about six. Nich Tremper, senior economist at Gusto, says this isn't simply a result of sweeping layoffs, but rather a quiet evolution. 'What seems to be happening is that as folks move on – older folks retire or others shift to new roles – businesses simply aren't backfilling those managerial positions,' he says. The change is largely driven by cost pressures. 'We've seen the average labour cost increase nearly 20 per cent over the last couple of years,' Mr. Tremper says. 'Small businesses don't have a lot of leeway in their budgets, so they're thinking through how best to maximize the productivity of the folks they have on staff. Part of that has come down to reducing management layers.' But the consequences of a leaner org chart extend beyond budgets. What we lose when we flatten While some businesses may appreciate the savings and agility that come with fewer layers of hierarchy, Mr. Tremper cautions against seeing it as a purely positive shift. 'These middle managers are really important for organizations,' he says. 'You have strategic decisions and guidance coming from the highest level of management, but it's individual managers who are turning those directions into actionable steps.' In other words, fewer managers may mean faster decision-making in the short term, but also the risk of teams lacking mentorship, development and day-to-day leadership. 'Highly productive sectors tend to maintain more managers with smaller teams,' Mr. Tremper says. 'It suggests that first-line managers play a critical role in scaling their expertise, developing their teams and ultimately boosting productivity.' Even in lower-productivity industries, measured by total output per hour worked, Gusto found that businesses with a higher share of managers tend to outperform their peers. Managers are opting out, too Not only are businesses hiring fewer managers but existing ones are leaving. In late 2024, Gusto found that the quit rate among managers was about 10 per cent higher than it was in January 2022, when it was more of an employee-driven labour market. 'Quit rates are often viewed as a sign of labour market confidence,' says Mr. Tremper. 'If managers are leaving, it could mean they believe they can find more meaningful work elsewhere. They might be looking to lead teams at other companies or return to being high-performing individual contributors.' Some may even be taking the opportunity to pivot entirely. 'For folks who are maybe no longer managers, this could be a chance to ask: What path do I really want? Do I want to be an individual expert? Or maybe this is the time to start my own business or consulting practice.' Flattening with intention The Great Flattening may seem like a cost-saving trend but it comes with trade-offs. While it can boost short-term agility, businesses that cut too deeply may sacrifice long-term development and stability. Mr. Tremper says business leaders should think carefully about what they're giving up. 'When I think of the most effective managers I've had, they've cared deeply about my professional development. They created opportunities for me to grow beyond my current skill set,' he says. Small businesses especially, he adds, rely on strong teams and strong teams often rely on great managers. 11 per cent According to new data from book summary app company Headway, while many workers are enjoying a slow summer season, more than one in 10 say their workload has increased. Read more Experts say rebranding yourself is about more than a job title or what you wear. It's important to be authentic about how you're changing personally and professionally and share that story over time. On a more tactical level, you can also get new headshots, work with a coach and spend time connecting intentionally with your current network and new peers in your industry. Read more 'Being punctual is a form of non-verbal communication. By showing up on time, you're non-verbally telling that person you care enough about their time and the task at hand. It's a representation of your work ethic and competency,' says etiquette trainer Mariah Grumet Humbert. This article looks at how punctuality norms have evolved over time and how being chronically late can impact your personal brand at work and in life. Read more Robert Half research reveals that Gen Z and professionals in tech are the most likely to search for a new job in the next six months. For the first time since the staffing firm began tracking worker sentiment, the research shows better benefits and perks rank as the highest motivator for workers exploring new roles. Read more
Globe and Mail
6 hours ago
- Globe and Mail
Here Are Billionaire Bill Ackman's 5 Biggest Stock Holdings
Key Points Bill Ackman buys shares in companies for the long term. The billionaire owns only 10 stocks, with a heavy concentration in five of them. Ackman even owns a 46.9% stake in one of his top five stocks. 10 stocks we like better than Uber Technologies › Billionaire Bill Ackman founded Pershing Square Capital Management with $54 million in 2004. Today, Ackman's net worth exceeds $9 billion, while the hedge fund's assets under management exceed $18 billion. Pershing Square holds shares in only 10 publicly traded companies, but 70.1% of its portfolio is concentrated in five stocks as per the latest 13-F filing. Here are Ackman's five biggest stock holdings. 1. Uber Technologies (18.5%) Uber Technologies (NYSE: UBER) is the world's largest ride-sharing company and also offers food delivery and freight transport services. Uber enjoys the benefits of network effects and a large global footprint and sees huge potential in autonomous vehicles. Ackman believes Uber stock could even double over the next three to four years. 2. Brookfield Corp (18.01%) Brookfield Corp (NYSE: BN) owns a 73% stake in Brookfield Asset Management. The alternative asset manager invests in renewable energy, real estate, infrastructure, and business and industrial services. Ackman is excited about Brookfield's goals to grow annual earnings per share by 20% and generate $47 billion in free cash flow over the next five years. 3. Restaurant Brands International (12.85%) Restaurant Brands (NYSE: QSR) owns Burger King, Tim Hortons, Popeyes, and Firehouse Subs. It operates over 32,000 restaurants worldwide, primarily through franchisees. Ackman sees strong long-term growth potential in Restaurant Brands, which aims to grow same-store sales and systemwide sales by over 3% and 8%, respectively, between 2024 and 2028. UBER data by YCharts. 4. Howard Hughes Holdings (11.71%) Ackman has been involved with Howard Hughes (NYSE: HHH) since its formation in 2010 after a spin-off and now owns a 46.9% stake in the real estate developer. Ackman now wants to convert Howard Hughes into a diversified holding company akin to Warren Buffett's Berkshire Hathaway. 5. Chipotle Mexican Grill (9.07%) Chipotle Mexican Grill (NYSE: CMG), known for its burritos and tacos, owns over 3,800 restaurants. Chipotle is now expanding globally and rolling out new technologies. Although Brian Niccol, who was monumental in Chipotle's growth, quit as the CEO in 2024, Ackman believes the present management under new CEO Scott Boatwright will continue to deliver. Should you invest $1,000 in Uber Technologies right now? Before you buy stock in Uber Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Uber Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway, Brookfield, Brookfield Corporation, Chipotle Mexican Grill, Howard Hughes, and Uber Technologies. The Motley Fool recommends Brookfield Asset Management and Restaurant Brands International and recommends the following options: short September 2025 $60 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.
