OXY To Report -- What To Expect -- February 27, 2023

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All my posts are done quickly: there will be content and typographical errors. If anything on any of my posts is important to you, go to the source. If/when I find typographical / content errors, I will correct them. 

Again, all my posts are done quickly. There will be typographical and content errors in all my posts. If any of my posts are important to you, go to the source.

Zacks link here.

The Zacks Consensus Estimate for fourth-quarter crude oil production is pegged at 656 thousand barrels of oil per day. For natural gas, the Zacks Consensus Estimate for the quarter is pegged at 1,754 thousand cubic feet per day.

Occidental expects total production of 1,200-1,260 thousand barrels of oil equivalent per day (MBOE/d) and 556-590 MBOE/d output from Permian Resources.

The Zacks Consensus Estimate for fourth-quarter earnings per share and total revenues are pegged at $1.83 per share and $8.65 billion, reflecting a year-over-year increase of 23.7% and 8%, respectively.

Financial Times. Archived.

Oxy and Anadarko: how the "dumbest deal in history" paid for for Vicki Hollub. Behind a paywall.  

The article begins:

When Vicki Hollub flew Occidental Petroleum’s Gulfstream V jet to Omaha for a meeting with billionaire investor Warren Buffett in April 2019, she needed cash to place a bet.

The $10bn cheque with which she emerged allowed her to outbid rival Chevron in an epic corporate battle to acquire Anadarko Petroleum, doubling Occidental, better known as Oxy, in size.

But the takeover saddled the company with debts totalling almost $50bn.

For the gamble to pay off, oil prices needed to remain elevated. Things quickly started to go wrong.

A little over six months later, as the Covid-19 pandemic upended the global economy, oil prices began a collapse in which the US benchmark would trade below zero — down as much as 177 per cent from the price on the day the Anadarko deal closed. Oxy’s stock was demolished by a market that had already soured on an industry that had burnt through investor cash in a series of debt-funded drilling sprees with little to show in the way of returns.

Critics panned Hollub for recklessness in ploughing ahead without regard for cost.

“It was the dumbest deal in history,” said one senior oil executive.

Almost four years later, Oxy is not only back from the dead, it is thriving. The company was the best performer on the S&P 500 in 2022, with its stock rising 119 per cent, as it reaped the rewards of elevated oil and gas prices in the wake of Russia’s invasion of Ukraine.

At noonish today