Occidental Petroleum Speeds Up Debt Repayment with $3B Reduction: Details
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 19 2024
0mins
Should l Buy OXY?
Source: Benzinga
Debt Reduction and Financial Performance: Occidental Petroleum Corporation announced a $3 billion reduction in principal debt for Q3 2024, driven by strong cash flow and divestitures, with plans to use proceeds from the $818 million Barilla Draw divestment to further reduce debt.
Acquisitions and Market Activity: The company completed a $12 billion acquisition of CrownRock, enhancing its production capabilities, while OXY shares saw a slight increase of 0.51% to $57.91.
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Analyst Views on OXY
Wall Street analysts forecast OXY stock price to rise
16 Analyst Rating
4 Buy
9 Hold
3 Sell
Hold
Current: 45.490
Low
38.00
Averages
47.27
High
64.00
Current: 45.490
Low
38.00
Averages
47.27
High
64.00
About OXY
Occidental Petroleum Corporation is an international energy company with assets primarily in the United States, the Middle East and North Africa. The Company is an oil and gas producer in the United States, including a producer in the Permian and DJ basins, and the offshore Gulf of Mexico. It operates through three segments: oil and gas, chemical and midstream and marketing. The oil and gas segment explores for, develops, and produces oil (which includes condensate), natural gas liquids (NGL) and natural gas. The chemical segment primarily manufactures and markets basic chemicals and vinyls. The midstream and marketing segment purchases, markets, gathers, processes, transports, and stores oil (which includes condensate), NGL, natural gas, carbon dioxide (CO2) and power. The midstream and marketing segment provides flow assurance and maximizes the value of its oil and gas. It also optimizes its transportation and storage capacity and invests in entities that conduct similar activities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Occidental Petroleum Earnings Report Preview
- Earnings Date Set: Occidental Petroleum is scheduled to report its fourth-quarter and full-year earnings on February 18, which could serve as a catalyst for the company's stock price, prompting investors to pay close attention.
- Strong Q3 Performance: In the third quarter, Occidental's oil and gas output reached nearly 1.5 million barrels of oil equivalent per day, exceeding the high end of its guidance, with adjusted net income of $0.64 per share, beating analyst expectations by $0.12, showcasing the company's robust operations.
- Q4 Expectations Decline: Despite a history of beating analyst estimates for three consecutive quarters, the anticipated decline in oil prices by about 10% in Q4 has led to a consensus estimate of only $0.19 per share, reflecting market concerns about its profitability.
- Oil Price Volatility Impacts Stock: Although the fourth-quarter earnings report is expected to fall short of expectations, fluctuations in oil prices will have a more significant impact on Occidental's stock, especially amid rising tensions with Iran, where potential military action could lead to soaring oil prices and subsequently boost the company's stock.
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- Personal Consumption Expenditures Data: On Friday, the Personal Consumption Expenditures (PCE) data will be released, which is the Fed's preferred inflation gauge, and the market will be keen to see if it confirms that inflation is steadily cooling or prompts the Fed to maintain a cautious stance.
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Occidental Petroleum Earnings Report Preview
- Earnings Date Set: Occidental Petroleum is scheduled to report its fourth-quarter and full-year earnings on February 18, which could serve as a catalyst for the company's stock price, prompting investors to pay close attention.
- Strong Q3 Performance: In the third quarter, Occidental's oil and gas output reached nearly 1.5 million barrels of oil equivalent per day, exceeding the high end of its guidance, with adjusted net income of $0.64 per share, beating analyst expectations by $0.12, showcasing the company's robust operations.
- Q4 Expectations Decline: Despite a history of beating analyst estimates for three consecutive quarters, the anticipated decline in oil prices by about 10% in Q4 has led to a consensus estimate of only $0.19 per share, reflecting market concerns about its profitability.
- Oil Price Volatility Impacts Stock: Although the fourth-quarter earnings report is expected to fall short of expectations, fluctuations in oil prices will have a more significant impact on Occidental's stock, especially amid rising tensions with Iran, where potential military action could lead to soaring oil prices and subsequently boost the company's stock.
See More
Key Companies to Monitor This Week: PCE, Walmart, Palo Alto, Analog Devices, Deere, and Others
- Market Performance: Equities experienced a decline last week, with all three major indexes falling by at least 1.2%.
- Economic Indicators: This downturn occurred despite a better-than-expected jobs report from the Bureau of Labor Statistics and a relatively stable inflation report.
See More
AI Turbulence Impacts Market Performance
- Increased Market Volatility: Last week, stocks in software, real estate, financial services, and logistics faced selling pressure due to concerns over AI-related disruptions, with the Nasdaq Composite falling 0.2% and a weekly loss of 2.1%, indicating market sensitivity to AI impacts.
- Consumer Spending Data Focus: This week's highlight will be the Personal Consumption Expenditures (PCE) report on Friday, which will provide insights into consumer spending in December and inflation trends, especially following last week's unexpected slowdown in the Consumer Price Index (CPI).
- Corporate Earnings in Spotlight: Walmart (WMT) is set to release its fourth-quarter earnings on Thursday, marking the first report under new CEO John Furner, making it a key indicator of consumer spending that the market is eagerly anticipating.
- Ongoing AI Impact: As AI tools' potential effects intensify across various sectors, software stocks like Salesforce (CRM) and ServiceNow (NOW) have seen significant declines, reflecting the market's heightened vigilance regarding AI disruptions, necessitating close monitoring of future industry developments.
See More
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- Walmart Earnings Expectations: Analysts anticipate Walmart will report its fourth-quarter earnings on Thursday, with net sales expected to rise approximately 4% and operating income potentially increasing by 11%, further solidifying its status as a trillion-dollar company.
- Consumer Health Insights: Investors will closely monitor Walmart's commentary on consumer health and its 2026 financial guidance to assess future market trends and corporate strategy.
- FOMC Meeting Minutes Release: The minutes from the January FOMC meeting will be released on Wednesday, providing insights into policymakers' views on the path of interest rates, especially after holding rates steady at the start of the year, which has generated significant market interest.
- Personal Consumption Expenditures Data: On Friday, the Personal Consumption Expenditures (PCE) data will be released, which is the Fed's preferred inflation gauge, and the market will be keen to see if it confirms that inflation is steadily cooling or prompts the Fed to maintain a cautious stance.
See More
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- Monetary Policy Balance: As Fed Chair Powell's tenure approaches its end, the market is keenly focused on his performance in balancing maximum employment and stable prices, especially with the upcoming release of the latest meeting minutes, marking one of his final meetings in office.
- Interest Rate Challenges: During Powell's leadership, the Fed has navigated emergency interventions and an aggressive rate-hiking cycle, with the benchmark rate rising from near zero to over 5%; despite initially viewing inflation as 'transitory,' achieving a 'soft landing' for the economy will be a key part of his legacy.
- Market Reaction Expectations: Investors are optimistic about the upcoming personal consumption expenditure data, although the cooler-than-expected CPI could impact the Fed's interest rate outlook, with markets currently pricing in only two quarter-point cuts for the year.
- Industry Dynamics Observation: As concerns over AI disruption grow, stocks in software, finance, and real estate have seen declines, prompting investors to search for the next potentially affected sectors, with Walmart and Deere's upcoming earnings reports likely to be focal points for market attention.
See More
Berkshire Likely Sold Additional Shares of Apple and Bank of America in Q4
Berkshire Hathaway's Filing: The company is set to release its fourth-quarter equity holdings, which will be closely examined by investors and analysts.
Warren Buffett's Leadership: This filing is particularly significant as it marks Warren Buffett's final quarter leading Berkshire Hathaway, raising interest in any strategic moves made by him and his team.
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