FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
63,165,084Confirmed
1,466,901Deaths
43,659,524Recovered
Fetching Location Data…
Advertisement
Advertisement
Vivek Kumar
Occidental Petroleum

Occidental Petroleum, an international oil & gas exploration and production company, reported a worse-than-expected loss in the third quarter as the ongoing COVID-19 pandemic hammered demand for fuel, sending shares down about 4% in after-hours trading on Monday.

The oil and gas producer said its net loss came in at $3.8 billion, or $4.07 per diluted share, and an adjusted loss attributable to common stockholders of $783 million, or $0.84 per diluted share. That was worse than the market expectations for a loss of $0.73 per diluted share.

“Occidental Petroleum (OXY) beat 3Q FCF estimates on 38% lower capex and better results from chems and midstream, while production was in line with the street. FY20 capex is unchanged, as 4Q spend is guided 24% above ests driven by activity additions, and adjusted production guide is 6% below ests, hurt by GOM downtime/Permian timing, even as OXY adds another 15 wells in the Permian this year and 1 rig in the DJ,” said David Deckelbaum, equity analyst at Cowen and Company.

Occidental Petroleum shares plunged about 4% to $11.75 in after-hours trading on Monday; the stock is down around 70% so far this year.

Occidental Petroleum Stock Price Forecast

Thirteen equity analysts forecast the average price in 12 months at $12.82 with a high forecast of $19.00 and a low forecast of $8.00. The average price target represents a 4.82% increase from the last price of $12.23. From those 13 analysts, three rated “Buy”, eight rated “Hold” and two rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $11 with a high of $29 under a bull-case scenario and $1 under the worst-case scenario. The firm currently has an “Equal-weight” rating on the oil & gas exploration company’s stock. UBS lowered the stock price forecast to $10 from $12 and Mizuho decreased the target price to $11 from $16.

Several other analysts have also recently commented on the stock. Occidental Petroleum had its price target dropped by equities research analysts at Bank of America to $29 from $30 in Sept. The firm currently has a “buy” rating on the oil and gas producer’s stock. JP Morgan cuts target price to $12.50 from $13; Simmons Energy lowered the target price to $12 from $19; Capital One Securities cuts target price by $2 to $12.

Advertisement

Analyst Comments

“Leverage remains elevated, but maturity outlook is manageable. Occidental Petroleum (OXY) has continued to extend maturities following the recent opening of the high-yield debt market. High-quality assets and differentiated exposure to a low carbon future. In addition to operating high-quality upstream assets, OXY has achieved peer-leading emission reductions and maintains investments in low carbon technologies,” said Devin McDermott, equity and commodities strategist at Morgan Stanley.

“Reasonable valuation. Since the oil price collapse on March 6, OXY has meaningfully underperformed large-cap and integrated peers. We now forecast an above-average FCF yield and see a more balanced risk-reward,” McDermott added.

Check out FX Empire’s earnings calendar

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US