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Occidental Petroleum’s 4Q17 Pre-Earnings Update

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Occidental Petroleum’s net income estimates

Occidental Petroleum (OXY) is set to report its 4Q17 and fiscal 2017 earnings on February 13, 2018, before the market opens. For 4Q17, excluding any one-time items, the current consensus net income estimate for Occidental Petroleum is ~$275 million.

On a year-over-year basis, OXY is expected to turn its year-ago loss into profit. In 4Q16, OXY reported an adjusted loss of ~$97 million. On a sequential basis and excluding any one-time items, OXY’s 4Q17 consensus net income estimate is ~101% higher when compared with a profit of ~$137 million in 3Q17.

Based on the current consensus net income estimate, Occidental Petroleum is expected to report its highest profit since 4Q14. OXY’s peer Southwestern Energy (SWN) expects a higher profit of ~$67 million in 4Q17 than its profit of ~$39 million in 4Q16.

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Occidental Petroleum’s 4Q17 EPS estimates

For 4Q17, excluding any one-time items, Wall Street analysts’ current consensus EPS estimate for OXY is $0.40. On a year-over-year basis, Occidental Petroleum’s 4Q17 current consensus EPS estimate is $0.53 higher when compared with its 4Q16 adjusted EPS of -$0.13. Sequentially, OXY’s 4Q17 current consensus EPS estimate is higher than $0.18 in 3Q17.

Occidental Petroleum’s 2017 net income and EPS estimates

For fiscal 2017, excluding any one-time items, Wall Street analysts expect Occidental Petroleum to report adjusted net income of ~$666 million, or $0.88 per share, from ~-$771 million, or -$1.01 per share, in 2016.

Over 2017, OXY was among the top-performing upstream companies with an ~8% return. OXY outperformed the SPDR S&P Oil and Gas Exploration & Production ETF (XOP), which represents an index of stocks in the energy industry.

XOP has ~79.3% exposure to the oil and gas exploration and production industry. XOP was down by more than 8% in 2017. To learn more about this industry’s performance in 2017, please read The Best and Worst Upstream Companies by Year-to-Date Returns.

In this series…

Having analyzed OXY’s 4Q17 earnings expectations, in the course of this series, we’ll look at OXY’s revenue expectations, production guidance, cash flow estimates, and its EPS expectations.

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