Shares of Occidental Petroleum (OXY) are soaring 5.10% in pre-market trading on Thursday, following the company's impressive first-quarter results and operational efficiency improvements. The oil and gas giant reported better-than-expected profits, driven by strong production growth and favorable commodity prices.

Occidental's Q1 adjusted profit came in at 87 cents per share, significantly beating analysts' estimates of 77 cents per share, according to data compiled by LSEG. The company's quarterly production rose nearly 19% to 1.39 million barrels of oil equivalent per day, showcasing its operational strength in a challenging market environment.

Adding to investor optimism, Occidental announced a reduction in its 2025 capital expenditure outlook, lowering it to $7.3 billion from the previous $7.5 billion. This move demonstrates the company's commitment to cost discipline and efficient capital allocation. Furthermore, Occidental plans to drop two rigs in the Delaware Basin, citing drilling efficiency gains, which is expected to contribute to improved profitability.

While the broader oil and gas sector has faced headwinds this year, with the SPDR S&P Oil & Gas Exploration & Production ETF declining by 14%, Occidental's strong performance and strategic moves appear to be resonating with investors. The stock's surge today marks a significant turnaround, as it had previously declined by 21% year-to-date prior to this announcement.