- Freehold Royalties Q1 2026 Earnings Call Transcript
May 13, 2026
Freehold Royalties (OTC:FRHLF) reported first-quarter financial results on Wednesday. The transcript from the company's first-quarter earnings call has been provided below.
This content is powered by Benzinga APIs. For comprehensive financial data and transcripts, visit https://www.benzinga.com/apis/.
The full earnings call is available at https://edge.media-server.com/mmc/p/d43cmqxn/
Summary
Freehold Royalties reported Q1 production of 15,533 BOE/day with a liquids weighting of 65%, driven by a liquids-focused strategy.
The company generated $59 million in funds from operations and paid $44 million in dividends, while investing $19 million in mineral title lands in the Permian Basin.
Freehold Royalties reiterated its 2026 production guidance of 15,500 to 16,300 BOE/day, expecting increased activity in Canada and the US as oil prices stabilize.
The US operations delivered a higher revenue component, contributing 51% of total revenue due to premium pricing and higher liquids weighting.
Management highlighted strategic acquisitions of undeveloped mineral title lands and potential share buybacks under the NCIB, focusing on enhancing the portfolio with high-quality assets.
Full Transcript
OPERATOR
Good day and thank you for standing by. Welcome to the Freehold Royalties first quarter 2026 webcast. At this time all participants are in a listen only mode. After the speaker's presentation there will be a question and answer session. To ask a question during the session you will need to press star 11 on your telephone. You will then hear an automated message advising that. Your hand is raised to withdraw your question. Please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, David Spiker, President and CEO. Please go ahead.
David Spiker (President and CEO)
Yes, Good morning everyone. Thank you for joining us today. On the call with me is Paul Slack, our interim CFO and Todd McBride, our manager of Investor Relations. For those that don't know Paul, he's been with our organization for the past six years as our Controller and has been in the industry for 30 years. So before we get started please be advised that certain statements on this call are considered as forward looking information and we caution the listener to review the advisory on forward looking statements in the news release and MD&A found on our website. So in the first quarter of this year we achieved production of 15,533 by a day with a liquids weighting of 65%. The oil and gas portion of our portfolio contribute 90% of our total revenue as our liquids focused strategy continues to drive our business and will be a key factor in this current elevated oil price environment. As we outlined in our conference call In March, our Q1 production reflects lower drilling activities in the latter half of 2025 when oil prices were sitting below $60 a barrel. WTI we did have some seasonal impact of the winter storm that swept through the southern US in late January and resulted in approximately 300 barrels a day of production. Downtime in January or in the quarter is what, 100 BOE a day on average. Activity levels in the first quarter were focused on our oil weighted assets in both Canada and the US we saw continued strong activity levels in our heavy oil plays the Clearwater and Manville in addition to very active programs in the Viking and Southeast Saskatchewan light oil with new drilling in these two light oil plays contributing over 225 barrels a day as we exited Q1. On the US side drilling was focused in the Permian and continues to be led by some of our top operators in Exxon Mobil, Occidental and Diamondback. Activity in the Eagle Ford tends to be a bit more seasonal and we see permitting and drilling activity just being initiated by ConocoPhillips and production associated with this field activity will start to show up in the back half of this year. In this current oil price environment where we have $100 a barrel oil this morning and balance of year strip pricing in the mid to upper 80s a barrel, we're starting to see licensing activity pick up in the Clearwater Southeast Saskatchewan Viking as well as some of our liquids rich gasier areas in certain parts of the Deep Basin and West Central Alberta Glauconite. We would expect to see drilling activity in these areas after spring breakup and this activity would contribute to our 2026 exit volumes. Looking ahead in the US permitting and drilling activity has not seen a significant uptick yet. However we are seeing all available frac spreads and service rigs activated to focus on bringing forward wells that have already been drilled and are awaiting completion. Given the volatility in the oil price and no clear direction yet on the duration of this price strength, operators are still developing their capital deployment strategies. All these tailwinds are positive for the industry and we expect the incremental production adds from any additional activity would show up in the latter half of 2026 and into 2027. Therefore, we are reiterating our 2026 production guidance at this time of 15,500 to 16,300 BOE a day annual production in the quarter we generated 59 million of funds from operations or $0.36 per share at an oil price of $72 a barrel WTI in the first quarter with this funds flow, we paid 44 million in dividends to our shareholders and we invested $19 million in oil focused mineral title lands in undeveloped drilling areas in the core of the Permian Basin. These lands are in early stages of development with mineral title lands held in perpetuity and are in areas that have significant undeveloped resource. Our net debt set a little higher as a result of these investments this quarter our North American portfolio remains very well balanced with 55% of our production coming out of Canada and 45% out of the U.S. the U.S. represents a slightly smaller share of production, but it does deliver a disproportionately higher revenue component accounting for 51% of our total revenue this quarter. This is driven by the premium pricing and higher liquids weighting that we have in our US assets. In the first quarter US royalty volumes realized a 31% pricing premium compared to our Canadian production. Beyond the quality and the strong market access of our US oil, our US natural gas also received a 58% premium over a Canadian gas price due to proximity to US Gulf Coast LNG facilities and significantly more egress options than we have in Canada. So as we think through our capital allocation priorities and this current price environment after a monthly dividend we look to have a bit of a balance of debt repayment along with strategic acquisitions that enhance our portfolio. We continue to see high quality opportunities to acquire this undeveloped mineral title lands in the core of the Permian and our focus has been on these types of deals. In the first quarter of this year we invested $19 million in what we call these ground-game style deals, adding over 200 drilling locations to our inventory under Premier operators ExxonMobil, Diamondback, Occidental, ConocoPhillips and Double Eagle. Lastly through our NCIB we have the option of share buybacks. So this year marks our 30th year as a public company and over the past 30 years our production has grown at a 4% compounded annual growth rate and we maintained a monthly dividend throughout Our portfolio offers investors exposure to the premier oil and natural gas basins across North America, including our growing heavy oil segment in Northern Alberta, a lighter oil plays in Southeast Saskatchewan, exposure to Gulf coast pricing with our Eagle Ford assets and our growing light oil and natural gas production from the Permian we invite you all to join us at our annual general meeting at 3pm Calgary time this afternoon. It will be held at the 8th Avenue Place Conference center and at Suite 400, 525 8th Ave. Southwest Calgary. More details, including a link to the webcast over AGM can be found on our website@freeholdroyalties.com so with that we're pleased to take any questions
Story Continues
OPERATOR
As a reminder. To ask a question, you will need to press Star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by when we compile our Q and A roster. And our first question will come from the line of Jamie Kubik of CIBC. Your line is open. Jamie, yeah, good morning.
Jamie Kubik (Equity Analyst)
Thanks for taking my question. I just had a question with respect to the US drilling activity in the quarter. Looked like it was down considerably year on year. Can you just talk about some of the nuances there and how you think that unfolds over the balance of the year? Yeah Jamie, I think that's really more a reflection of trailing $60 WTI coming out of the last quarter and that plays into the first quarter of this year. Going forward we are seeing an increase in permitting activity and US is a little bit different than Canada in that you think of that on stream time, typically taking 12 to 18 months to go from permitting to drilling a pad. And so what we are seeing is U.S. operators probably taking a little bit more time to decide how they're going to place their capital in this environment because that drilling isn't going to capture $100 oil price that we see today. So they want to make sure that as they ramp up their programs that they're happy, which really is going to become 2027. Pricing will impact those volumes. So in Canada, we see a little bit of quicker ramp up, there's quicker cycle times. But in the US I think we're just starting to see that activity ramp up as a little bit more confidence in what late year pricing looks like and going into next year. Okay, that's all for me, thanks. Yeah, thanks, Jamie.
OPERATOR
And as a reminder, if you would like to ask a question, please press star 11 on your telephone and wait for your names to be announced. And I would now like to turn the call back to Dave for closing remarks.
David Spiker (President and CEO)
Excellent. Well, thanks everyone for joining today. And like I say, if we can make it over to the AGM this afternoon, we'd love to see you there. And thanks and have a good day. Take care.
OPERATOR
And this concludes today's program. Thank you for participating. You may now disconnect.
Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice.
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This article Freehold Royalties Q1 2026 Earnings Call Transcript originally appeared on Benzinga.com
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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- Full Transcript: Freehold Royalties Q1 2026 Earnings Call
May 13, 2026
Freehold Royalties (TSX:FRU) reported first-quarter financial results on Wednesday. The transcript from the company's first-quarter earnings call has been provided below.
This transcript is brought to you by Benzinga APIs. For real-time access to our entire catalog, please visit https://www.benzinga.com/apis/ for a consultation.
The full earnings call is available at https://edge.media-server.com/mmc/p/d43cmqxn/
Summary
Freehold Royalties reported Q1 2026 production of 15,533 barrels of oil equivalent per day, with a liquids weighting of 65%, driven by a focus on oil-weighted assets.
The company generated $59 million in funds from operations, translating to $0.36 per share, and paid $44 million in dividends, while investing $19 million in mineral title lands in the Permian Basin.
Freehold Royalties reiterated its 2026 production guidance of 15,500 to 16,300 barrels of oil equivalent per day and discussed the positive impact of $100 oil prices on future activity and revenue.
Full Transcript
OPERATOR
Good day and thank you for standing by. Welcome to the Freehold Royalties first quarter 2026 webcast. At this time all participants are in a listen only mode. After the speaker's presentation there will be a question and answer session. To ask a question during the session you will need to press star 11 on your telephone. You will then hear an automated message advising that. Your hand is raised to withdraw your question. Please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, David Spiker, President and CEO. Please go ahead.
David Spiker (President and CEO)
Yes, Good morning everyone. Thank you for joining us today. On the call with me is Paul Slack, our interim CFO and Todd McBride, our manager of Investor Relations. For those that don't know Paul, he's been with our organization for the past six years as our Controller and has been in the industry for 30 years. So before we get started please be advised that certain statements on this call are considered as forward looking information and we caution the listener to review the advisory on forward looking statements in the news release and MD&A found on our website. So in the first quarter of this year we achieved production of 15,533 by a day with a liquids weighting of 65%. The oil and gas portion of our portfolio contribute 90% of our total revenue as our liquids focused strategy continues to drive our business and will be key in this current elevated oil price environment. As we outlined in our conference call In March, our Q1 production reflects lower drilling activities in the latter half of 2025 when oil prices were sitting below $60 a barrel. WTI we did have some seasonal impact of the winter storm that swept through the southern US in late January and resulted in approximately 300 barrels a day of production. Downtime in January or in the quarter is what, 100 boe a day on average. Activity levels in the first quarter were focused on our oil weighted assets in both Canada and the US we saw continued strong activity levels in our heavy oil plays the Clearwater and Manville in addition to very active programs in the Viking and Southeast Saskatchewan light oil with new drilling in these two light oil plays contributing over 225 barrels a day as we exited Q1. On the US side drilling was focused in the Permian and continues to be led by some of our top operators in Exxon Mobil, Occidental and Diamondback. Activity in the Eagle Ford tends to be a bit more seasonal and we see permitting and drilling activity just being initiated by ConocoPhillips and production associated with this field activity will start to show up in the back half of this year. In this current oil price environment where we have $100 a barrel oil this morning and balance of year strip pricing in the mid to upper 80s a barrel, we're starting to see licensing activity pick up in the Clearwater Southeast Saskatchewan Viking as well as some of our liquids rich gasier areas in certain parts of the Deep Basin and West Central Alberta Glauconite. We would expect to see drilling activity in these areas after spring breakup and this activity would contribute to our 2026 exit volumes. Looking ahead in the US permitting and drilling activity has not seen a significant uptick yet. However we are seeing all available frac spreads and service rigs activated to focus on bringing forward wells that have already been drilled and are awaiting completion. Given the volatility in the oil price and no clear direction yet on the duration of this price strength, operators are still developing their capital deployment strategies. All these tailwinds are positive for the industry and we expect the incremental production adds from any additional activity would show up in the latter half of 2026 and into 2027. Therefore, we are reiterating our 2026 production guidance at this time of 15,500 to 16,300 boe/day annual production in the quarter we generated 59 million of funds from operations or $0.36 per share at an oil price of $72 a barrel WTI in the first quarter with this funds flow we paid 44 million in dividends to our shareholders and we invested $19 million in oil focused mineral title lands in undeveloped drilling areas in the core of the Permian Basin. These lands are in early stages of development with mineral title lands held in perpetuity and are in areas that have significant undeveloped resource. Our net debt set a little higher as a result of these investments this quarter our North American portfolio remains very well balanced with 55% of our production coming out of Canada and 45% out of the U.S. the U.S. represents a slightly smaller share of production, but it does deliver a disproportionately higher revenue component accounting for 51% of our total revenue this quarter. This is driven by the premium pricing and higher liquids weighting that we have in our US assets. In the first quarter US royalty volumes realized a 31% pricing premium compared to our Canadian production. Beyond the quality and the strong market access of our US oil, our US natural gas also received a 58% premium over a Canadian gas price due to proximity to US Gulf Coast LNG facilities and significantly more egress options than we have in Canada. So as we think through our capital allocation priorities and this current price environment after a monthly dividend we look to have a bit of a balance of debt repayment along with strategic acquisitions that enhance our portfolio. We continue to see high quality opportunities to acquire this undeveloped mineral title lands in the core of the Permian and our focus has been on these types of deals. In the first quarter of this year we invested $19 million in what we call these ground game style deals, adding over 200 drilling locations to our inventory under Premier operators ExxonMobil, Diamondback, Occidental, ConocoPhillips and Double Eagle. Lastly through our NCIB we have the option of share buybacks. So this year marks our 30th year as a public company and over the past 30 years our production has grown at a 4% compounded annual growth rate and we maintained a monthly dividend throughout Our portfolio offers investors exposure to the premier oil and natural gas basins across North America, including our growing heavy oil segment in Northern Alberta, a lighter oil plays in Southeast Saskatchewan, exposure to Gulf coast pricing with our Eagle Ford assets and our growing light oil and natural gas production from the Permian we invite you all to join us at our annual general meeting at 3pm Calgary time this afternoon. It will be held at the 8th Avenue Place Conference center and at Suite 400, 525 8th Ave. Southwest Calgary. More details, including a link to the webcast over AGM can be found on our website@freeholdroyalties.com so with that we're pleased to take any questions
Story Continues
OPERATOR
As a reminder. To ask a question, you will need to press Star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by when we compile our Q and A roster. And our first question will come from the line of Jamie Kubik of CIBC. Your line is open. Jamie, yeah, good morning.
Jamie Kubik (Equity Analyst)
Thanks for taking my question. I just had a question with respect to the US drilling activity in the quarter. Looked like it was down considerably year on year. Can you just talk about some of the nuances there and how you think that unfolds over the balance of the year? Yeah Jamie, I think that's really more a reflection of trailing $60 WTI coming out of the last quarter and that plays into the first quarter of this year. Going forward we are seeing an increase in permitting activity and US is a little bit different than Canada in that you think of that on stream time, typically taking 12 to 18 months to go from permitting to drilling a pad. And so what we are seeing is us guys probably taking a little bit more time to decide how they're going to place their capital in this environment because that drilling isn't going to capture $100 oil price that we see today. So they want to make sure that as they ramp up their programs that they're happy, which really is going to become 2027. Pricing will impact those volumes. So in Canada, we see a little bit of quicker ramp up, there's quicker cycle times. But in the US I think we're just starting to see that activity ramp up as a little bit more confidence in what late year pricing looks like and going into next year. Okay, that's all for me, thanks. Yeah, thanks, Jamie.
OPERATOR
And as a reminder, if you would like to ask a question, please press star 11 on your telephone and wait for your names to be announced. And I would now like to turn the call back to Dave for closing remarks.
David Spiker (President and CEO)
Excellent. Well, thanks everyone for joining today. And like I say, if we can make it over to the AGM this afternoon, we'd love to see you there. And thanks and have a good day. Take care.
Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice.
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This article Full Transcript: Freehold Royalties Q1 2026 Earnings Call originally appeared on Benzinga.com
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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- Occidental Petroleum Corporation (OXY) Posts $5.11 Billion Revenue, Down More Than 25%
May 12, 2026
Occidental Petroleum Corporation (NYSE:OXY) is one of our Best Undervalued Stocks to Buy Under $100. The company currently trades at a forward price to earnings ratio of 9.92, below the sector average of 12.58. Occidental Petroleum Corporation (NYSE:OXY) recently posted FQ1 2026 earnings on May 5.
During the quarter, the company posted $5.11 billion in revenue, down 25.34% year-over-year and below expectations by $556.23 million. The GAAP EPS of $3.13 also topped the consensus by $2.53. Management noted delivering 1.43 million BOE per day, ahead of the high end of the company’s guidance. This production came despite the lower international output from Middle East disruptions.
Following the release on May 7, UBS lowered the firm’s price target on Occidental Petroleum Corporation (NYSE:OXY) from $67 to $65, while maintaining a Neutral rating on the shares. The firm noted that the company’s long-term philosophy is leading to free cash flow growth. During the quarter, the company generated approximately $1.7 billion before working capital, representing an increase of about 52% from continuing operations. This was driven by cost and operational efficiency, despite oil prices similar to those in 2025.
Occidental Petroleum Corporation (NYSE:OXY) is an international energy company with assets primarily located in the United States, the Middle East, and North Africa. The company produces oil and gas in the United States, including operations in the Permian Basin, DJ Basin, and the offshore Gulf of Mexico.
While we acknowledge the potential of OXY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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- 3 Oil Stocks to Buy Before Prices Head Higher
May 12, 2026 · fool.com
Occidental, Chevron, and ExxonMobil are no-brainer buys amid the Iran war.
- Are Wall Street Analysts Predicting Occidental Petroleum Stock Will Climb or Sink?
May 12, 2026
With a market capitalization of $44.2 billion, Occidental Petroleum Corporation (OXY) is a major American oil and gas producer focused on crude oil, natural gas, natural gas liquids (NGLs), chemicals manufacturing, and carbon management technologies. Headquartered in Houston, Texas, the company operates across the United States, the Middle East, North Africa, and Latin America.
Occidental is best known for its large-scale upstream oil and gas operations, particularly in the Permian Basin, one of the most productive shale regions in the United States. Shares of the energy company have underperformed the broader market over the past year but have rallied in 2026. OXY stock has soared 30.8% over the past 52 weeks and has surged 34.1% on a year-to-date basis. In comparison, the S&P 500 Index ($SPX) has returned 31% over the past year and 8.3% in 2026.
More News from Barchart
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Narrowing the focus, OXY has also underperformed the State Street Energy Select Sector SPDR ETF (XLE), which rose 38.7% over the past 52 weeks and delivered 27.9% returns this year.www.barchart.com
On May 5, Occidental Petroleum shares dipped 1.5% after the company announced its FY2026 first-quarter earnings. While Occidental delivered better-than-expected adjusted earnings of $1.06 and strong production growth driven by its Permian Basin operations, investors remained cautious about softer commodity prices and the company’s decision to prioritize capital discipline over aggressive production expansion. Its revenue came in at about $5.11 billion, down 11% year over year and missing the consensus estimates.
For the fiscal year that ended in December, analysts expect OXY to report a 123.5% year over year rise in adjusted EPS to $4.94. The company has a solid earnings surprise history. It has surpassed the Street’s bottom-line estimates in each of the past four quarters.
OXY has a consensus “Hold” rating overall. Of the 26 analysts covering the stock, opinions include six “Strong Buys,” one “Moderate buy,” 17 “Holds,” and two “Strong Sells.”www.barchart.com
The consensus is bearish than a month ago when the stock had an overall rating of “Moderate Buy.”
On May 8, Truist lowered its price target on Occidental Petroleum from $65 to $57 while maintaining a “Hold” rating on the stock. The firm updated its outlook following Q1 earnings, noting that many energy producers are choosing to maintain current production levels rather than aggressively ramp up activity, instead benefiting from higher oil prices and improved operational efficiency.
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OXY’s mean price target of $63.24 indicates upside potential of 14.7% from the current market prices. The Street-high target of $75 suggests the stock could rise as much as 36%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
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- Occidental Petroleum Corp (OXY) Stock Up 4.0% but GF Value Says Overvalued -- GF Score: 60/100
May 11, 2026 · gurufocus.com
On May 11, 2026, Occidental Petroleum Corp (OXY) shares rose 4.0% today, trading at $55.14. The stock has experienced a 52-week range of $38.80 to $67.45, with
- Better Oil Stock: Occidental Petroleum vs. Energy Transfer
May 11, 2026
Occidental Petroleum(NYSE: OXY) and Energy Transfer(NYSE: ET) represent two different ways to profit from the growing demand for oil and natural gas. Occidental, better known as Oxy, is a leading upstream company with a much smaller midstream business. Energy Transfer, which operates as a master limited partnership (MLP), is a leading midstream company.
Oxy's stock has risen 34% year-to-date, while Energy Transfer's shares have risen 17%. Let's see why Oxy outperformed Energy Transfer -- and if it's still the better overall investment.
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Why is Oxy outperforming Energy Transfer?
The spot price of WTI crude oil has risen more than 90% this year to about $110 per barrel. Most of that gain occurred after the outbreak of the Iran war in late February, which severely throttled oil and natural gas shipments through the Strait of Hormuz.
Upstream companies primarily focus on oil and natural gas extraction, so rising oil prices boost their revenues much faster than their expenses. Oxy's upstream business can keep generating massive profits as long as oil stays above its breakeven price of roughly $60 per barrel.
Midstream companies charge upstream and downstream companies "tolls" to transport those resources through their pipelines and infrastructure. That business model insulates them from volatile commodity prices, but they also see fewer benefits from soaring oil prices.
Since Oxy generates most of its revenue from its upstream business, higher oil prices drove its stock price higher. This January, it sold OxyChem, its downstream refining and chemical production business, which has more negative exposure to rising oil prices. As a top upstream player, Oxy attracted more attention than midstream and downstream companies.
Energy Transfer operates more than 140,000 miles of pipeline across 44 states. It transports natural gas, liquefied natural gas (LNG), natural gas liquids (NGLs), crude oil, and other refined products through its pipelines. It also helps export some natural gas products overseas.
Midstream companies indirectly benefit from higher oil and gas prices because they drive upstream companies to increase drilling and production. That higher production drives more resources through their pipelines, which boosts their adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) and cash flows. So while higher oil prices generated tailwinds for Energy Transfer, they weren't as strong as the tailwinds for upstream companies.
Story Continues
Energy Transfer's business model is also a bit harder to understand than Oxy's. As an MLP, it blends a return of capital with its own income to deliver more tax-efficient distributions than traditional dividends. However, that income needs to be reported on a separate K-1 tax form every year, making it a less straightforward investment than other oil stocks.
Which stock is the better value?
For 2026, analysts expect Oxy's revenue and EPS to increase 19% and 283%, respectively. That would end its three-year streak of declining revenues and earnings. It would also indicate it's finally overcoming its badly timed, debt-driven acquisition of Anadarko in 2019. At $55, its stock looks undervalued at 14 times next year's earnings.
They also expect Oxy's adjusted EBITDA, which excludes its one-time expenses, to increase 29%. With an enterprise value of $63.5 billion, it trades at just four times that estimate. It also pays a decent forward yield of nearly 2%.
As for Energy Transfer, analysts expect its revenue and earnings per unit (EPU) to rise 27% and 22%, respectively, in 2026. They also expect its adjusted EBITDA to grow 16%.
At $19 with an enterprise value of $135.2 billion, Energy Transfer also looks like a bargain at 13 times and 7 times this year's earnings and adjusted EBITDA, respectively. However, it pays a much higher forward yield of 6.9%.
Which stock is the better long-term play?
Oxy has been a hotter oil stock than Energy Transfer this year, but that rally will fizzle out when oil prices retreat. Therefore, I believe Energy Transfer is still the better overall investment for income-seeking investors who want a simpler stock to buy, hold, and forget -- even though it's less exposed to soaring oil prices and requires more tax forms than Oxy.
Should you buy stock in Occidental Petroleum right now?
Before you buy stock in Occidental Petroleum, consider this:
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Leo Sun has positions in Energy Transfer. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.
Better Oil Stock: Occidental Petroleum vs. Energy Transfer was originally published by The Motley Fool
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- Constellation Energy's Q1 Earnings and Revenues Beat Estimates
May 11, 2026
Constellation Energy Corporation CEG reported first-quarter 2026 earnings of $2.74 per share, which surpassed the Zacks Consensus Estimate of $2.56 by 7.03%. The earnings per share increased 28% from the year-ago quarter’s figure of $2.14.
CEG’s Total Revenues
Revenues totaled $11.12 billion, which beat the Zacks Consensus Estimate of $8.2 billion by 35.5%. The top line also increased 63.8% from the year-ago figure of $6.78 billion.
Constellation Energy Corporation Price, Consensus and EPS SurpriseConstellation Energy Corporation Price, Consensus and EPS Surprise
Constellation Energy Corporation price-consensus-eps-surprise-chart | Constellation Energy Corporation Quote
Highlights of CEG’s Q1 Release
Total operating expenses were $8.8 billion, up 38.9% from $6.33 billion in the year-ago period. The year-over-year increase in operating expenses was due to higher purchased power and fuel, and higher operating and maintenance expenses compared with the year-ago period.
Operating income for the reported quarter was $2.33 billion compared with $0.45 billion in the year-ago period.
Net interest expenses increased 73.3% to $253 million from $146 million in the year-ago period.
Constellation Energy’s owned output from the Salem and South Texas Project Generating Stations produced 44,666 gigawatt-hours (GWhs) in the first quarter of 2026, compared with 45,582 GWhs in the first quarter of 2025.
Excluding Salem and STP, CEG’s owned nuclear plants recorded a 92.3% capacity factor in the first quarter of 2026, compared with 94.1% in the year-ago quarter. Sites operated by CEG experienced 99 planned refueling outage days in the first quarter of 2026, compared with 88 days in the first quarter of 2025.
Development post Q1
On April 16, 2026, CEG marked the commissioning of the 105-MW Pastoria Solar Project, the largest renewable energy project contracted by the California Department of Water Resources thus far as part of its goal to fully decarbonize operations by 2035.
On April 30, 2026, CEG’s Pin Oak Creek Energy Center commenced commercial operations. The 460-MW, advanced natural gas facility is built to deliver reliable, dispatchable power to the ERCOT grid.
CEG’s Financial Position
As of March 31, 2026, Constellation Energy had cash and cash equivalents of $0.8 billion compared with $3.64 billion as of Dec. 31, 2025.
The company had a long-term debt of $16.99 billion as of March 31, 2026, compared with $7.25 billion as of Dec. 31, 2025.
Cash provided in operating activities in first-quarter 2026 amounted to $425 million compared with $107 million in first-quarter 2025.
Total capital expenditures in the first three months of 2026 were $1.27 billion compared with $0.8 billion in first-quarter 2025.
CEG’s Guidance
Constellation Energy reaffirmed its 2026 earnings per share estimate in the range of $11.00-$12.00 per share. The Zacks Consensus Estimate for 2026 earnings per share is currently pegged at $11.69, which is within the guided range.
CEG projects long-term earnings growth of more than 20% through 2029.
Story Continues
CEG’s Zacks Rank
Constellation Energy has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Releases From the Sector
Devon Energy Corp. DVN reported first-quarter 2026 earnings per share (EPS) of $1.04, surpassing the Zacks Consensus Estimate of $1 by 4%. The metric was down 14% year over year.
Total revenues for the quarter were $3.80 billion, which lagged the Zacks Consensus Estimate of $4.16 billion by 8.5%. The top line decreased 14.5% from the year-ago quarter’s figure.
TotalEnergies SE TTE reported first-quarter 2026 operating earnings of $2.45 (€2.10) per share, which surpassed the Zacks Consensus Estimate of $1.99 by 23.1%. The bottom line improved 34% from the year-ago figure of $1.83 (€1.74).
Total revenues for the first quarter were $49.51 billion, which increased from the year-ago reported figure of $47.9 billion by 3.36%. The metric beat the Zacks Consensus Estimate of $46.85 billion by 5.9%.
Occidental Petroleum Corporation OXY reported first-quarter 2026 operating earnings of $1.06 per share, which beat the Zacks Consensus Estimate of 65 cents by 63.08%. The bottom line also increased 21.8% from 87 cents in the year-ago quarter.
The company reported revenues of $5.1 billion, which lagged the Zacks Consensus Estimate of $5.49 billion by 7.04%. The top line also dropped 25.3% from the prior-year quarter’s $6.84 billion.
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- Better Oil Stock: Occidental Petroleum vs. Energy Transfer
May 11, 2026 · fool.com
Which of these energy stocks is the better buy right now?
- Occidental Petroleum Corporation (OXY) is Attracting Investor Attention: Here is What You Should Know
May 11, 2026
Occidental Petroleum (OXY) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this oil and gas exploration and production company have returned -8.5% over the past month versus the Zacks S&P 500 composite's +9.1% change. The Zacks Oil and Gas - Integrated - United States industry, to which Occidental belongs, has lost 8.2% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate Revisions
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Occidental is expected to post earnings of $1.30 per share, indicating a change of +233.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +43.3% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $4.87 points to a change of +120.4% from the prior year. Over the last 30 days, this estimate has changed +57.3%.
For the next fiscal year, the consensus earnings estimate of $3.58 indicates a change of -26.6% from what Occidental is expected to report a year ago. Over the past month, the estimate has changed +10.8%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Occidental.
Story Continues
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS12-month consensus EPS estimate for OXY
Projected Revenue Growth
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Occidental, the consensus sales estimate for the current quarter of $6.32 billion indicates a year-over-year change of -2.1%. For the current and next fiscal years, $24.62 billion and $24.36 billion estimates indicate -3.2% and -1.1% changes, respectively.
Last Reported Results and Surprise History
Occidental reported revenues of $5.11 billion in the last reported quarter, representing a year-over-year change of -25.3%. EPS of $1.06 for the same period compares with $0.87 a year ago.
Compared to the Zacks Consensus Estimate of $5.5 billion, the reported revenues represent a surprise of -7.03%. The EPS surprise was +63.08%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates times over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Occidental is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Occidental. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.
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Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report
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