Occidental Petroleum (OXY) is set to report its third-quarter earnings on Tuesday, and investors are keen to see how the company’s debt reduction efforts and key divisions have performed. Analysts expect strong results, but will they live up to the hype?
Occidental Petroleum Corporation (OXY) announced a significant $3 billion reduction in its principal debt during the third quarter of 2024, driven by strong cash flow and divestiture proceeds. This achievement puts the company on track to meet its near-term debt reduction target of $4.5 billion, with approximately 85% already accomplished. The company is actively pursuing its deleveraging strategy through both asset sales and free cash flow generation.
Ashford Hospitality Trust has announced the sale of the 193-room One Ocean Resort in Atlantic Beach, Florida. The proceeds will be used for debt reduction and general corporate purposes. The sale has improved the company’s net debt to gross assets ratio and reduced its strategic financing balance.
The International Monetary Fund (IMF) has issued a stern warning to France, urging the government to take immediate action to reduce its debt load. The IMF cautioned that the country’s budget deficit is projected to surge to 4.5% of GDP in 2027, significantly higher than the previous forecast of 2.9%. This alarming increase poses a serious threat to France’s fiscal stability.
Antero Midstream (NYSE: AM) has been strategically acquiring underutilized midstream assets and optimizing their usage, leading to significant cost savings and increased efficiency. By moving surplus equipment to areas with greater demand and reconfiguring infrastructure, the company has reduced capital expenditures and enhanced equipment utilization rates. The resulting surge in free cash flow is expected to drive exceptional shareholder returns through dividend increases and share buybacks. The company’s focus on debt reduction and close collaboration with Antero Resources has further strengthened its financial position and positioned it for long-term growth. Despite the weak natural gas price environment, Antero Midstream’s commitment to operational excellence and export market expansion positions it as a strong buy consideration for investors seeking consistent returns and exposure to the potential recovery of the energy sector.
Core Laboratories Inc. (NYSE: CLB) reported first quarter 2024 revenue of $122.6 million. Core’s operating income was $18.5 million, with diluted earnings per share (EPS) of $0.25, all in accordance with U.S. generally accepted accounting principles (GAAP). Operating income, ex-items, a non-GAAP financial measure, was $24.4 million, yielding operating margins of 12%, and EPS, ex-items, of $0.32. Core Lab used excess free cash to reduce debt by $44.5 million in the first quarter of 2024. The company’s leverage ratio of 1.76 was unchanged compared to prior quarter-end. The company anticipates sustainable activity growth in the years ahead to support crude-oil demand and energy security concerns.
Pret A Manger, the London-based sandwich chain, has brought back Sinclair Beecham, co-founder of the business, and former Chairman Larry Billett to its management team. The move comes as the company seeks to reduce its significant debt pile, which had reached £698 million by the end of 2022. Billett will join the board as a non-executive director, while Beecham will serve as an adviser. Current chairman Olivier Goudet will step down and be replaced by board member Konrad Meyer.
Getting a tax refund can be a financial boost, but it’s crucial to prioritize your spending for long-term success. Consider using your refund to save, pay off high-interest debt, or invest for the future. Create a budget to track your expenses and align with your financial goals. Avoid splurging and focus on making informed decisions.
