Predicting Occidental Petroleum's Performance In 2023 And 2024: A Closer Look At CFPS Estimates Adjustments

Stephens analyst Mike Scialla lowered the price target of Occidental Petroleum Corp OXY to $69 from $72 at an Overweight rating.  

The analyst is lowering the Q2 FY23 cash flow per share (CFPS) estimate to $2.59 (10% below consensus) from $2.66, owing to decline in projected realized natural gas and NGL prices (($1.62/Mcf and $22.08/B), and a higher expected LOE.

Consequently, Scialla reduced the Q2 EBITDA estimate by 13% to $3.22 billion, 7% below consensus.

The analyst also lowered the estimates for realized natural gas and NGL price estimates by 3% and 2% in 2023 and 4% and 5%, respectively, in 2024. 

On the other hand, Scialla raised the realized oil price estimate by 3% in 2023 and 4% in 2024.

Consequently, the analyst revised estimates for CFPS to $12.51 (from $12.71, in line with consensus) in 2023 and $12.03 (from $11.75, 9% below street estimate) in 2024.

Apart from this, Morgan Stanley also reduced OXY's price target to $60 from $63 at an Equal-Weight rating.

Also Read: 3 Oil Stocks To Buy Before The Price Of Crude Takes Off

Price Action: OXY shares are trading higher by 1.32% at $60.08 on the last check Tuesday.

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