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.
Occidental Petroleum (OXY) has outperformed the broader market this year, driven by the recovery in oil prices.
The company’s recent acquisition of CrownRock is expected to boost free cash flow and earnings, making it an attractive investment.
Analysts at BofA have a price target of $80 on OXY, while I believe the stock is worth $80-96, representing a 20-44% upside potential from the current price.
Despite the risks associated with oil price volatility, I believe OXY’s management team is effective and the company is well-positioned to benefit from the ongoing bullish cycle in the oil market.
