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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.
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.