-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
OXY posted Q1 adjusted EPS of $1.06 vs. the $0.87 consensus, a $0.47 beat, while production of 1,426,000 boe/d exceeded guidance but declined 3.7% sequentially. The Permian Basin contributed 787,000 boe/d (55% of total), with Oil & Gas pre-tax income rising to $1.0B from $0.7B in Q4 as liquids pricing improved with oil realizations up 18% to $69.91/b and NGL prices rising 14% to $18.99/b, though domestic gas realizations fell 10% to $1.01/Mcf due to Permian congestion. The company made significant balance sheet progress, reducing principal debt to $13.3B following $7.1B in repayments and advancing toward its $10.0B milestone, while cash increased to $3.8B. The OxyChem divestiture provided financial flexibility despite occurring at a cyclical trough. We expect near-term free cash flow to improve further given crude prices remain materially higher since the Iran conflict began February 28, with free cash flow before working capital reaching $1.7B vs. capex of $1.6B.