NEW YORK (TheStreet) -- Occidental Petroleum Corp. (OXY) - Get Report stock is slightly higher at $81.46 in late afternoon trading after Abu Dhabi National Oil Co. (ADNOC) awarded the company a $500 million oil exploration project and the rights to develop one of Abu Dhabi's largest offshore fields in the Persian Gulf, ADNOC told Bloomberg.
"The agreement covers 3D seismic surveys, drilling of appraisal wells and conducting of engineering studies necessary for the fields' development," the Abu Dhabi-based oil company told Reuters, adding that it holds a 70% share in the venture versus Occidental's 30%.
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Other oil companies that bid on the project included were Exxon Mobil (XOM) - Get Report, Royal Dutch Shell (RDS.A) , BP (BP) - Get Report, China National Petroleum, Japan's Inpex Corp., OAO Rosneft and Eni SpA (E) - Get Report.
Separately, TheStreet Ratings team rates OCCIDENTAL PETROLEUM CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- OXY, with its decline in revenue, slightly underperformed the industry average of 21.4%. Since the same quarter one year prior, revenues fell by 30.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- OCCIDENTAL PETROLEUM CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, OCCIDENTAL PETROLEUM CORP reported lower earnings of $0.68 versus $7.35 in the prior year. This year, the market expects an improvement in earnings ($1.61 versus $0.68).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 307.7% when compared to the same quarter one year ago, falling from $1,643.00 million to -$3,413.00 million.
- In its most recent trading session, OXY has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
- You can view the full analysis from the report here: OXY Ratings Report