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Occidental Petroleum (OXY) Q1 Loss Wider Than Expected

Occidental Petroleum Corporation OXY is an integrated oil and gas company. This Houston, TX-based firm, together with its subsidiaries, operates in the U.S. and several international territories with considerable exposure in exploration and production activities.

Given the current commodity price environment, Occidental Petroleum is pursuing strategies to reduce activities in non-core operations in the Middle East and North Africa, while shifting focus toward opportunities to generate higher financial returns.

The company’s efforts to focus on its core oil and gas operations thus have resulted in strong production growth from Permian basin resources.  Moreover, systematic cost reduction strategies continue to help the company to counter the low price environment.

Estimate Trend & Surprise History

Investors should note that the first quarter Zacks Consensus Estimate is a loss of 41 cents per share, widened from a loss of 29 cents over the last 90 days.

Coming to the earnings surprise, Occidental Petroleum has surpassed the Zacks Consensus Estimate in two of the last four quarters, resulting in a positive average surprise of 82.14%.

Zacks Rank: Currently, Occidental Petroleum has a Zacks Rank #3 (Hold) but that could change following its first quarter 2016 earnings report which has just released. We have highlighted some of the key details from the just-released announcement below:

Earnings: Occidental Petroleum reported first quarter loss wider than expected. Our consensus called for first-quarter loss of 41 cents, and the company reported loss of 56 cents.

Revenue: Occidental Petroleum's revenue surpassed estimates in the first quarter. The company posted revenues of $2,281 million in the first quarter, compared to our consensus estimate of $2,179 million.

Key Stats: Average daily oil and gas production volumes in the quarter were 584 thousand barrels of oil equivalents (MBoe), up 9.6% from the prior-year level.

Stock Price: It would be interesting to see how the market reacts to the earnings results during the trading session today.

Check back later for our full write up on this OXY earnings report later!

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