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Investing.com - UBS has reiterated its Neutral rating and $45.00 price target on Occidental Petroleum (NYSE:OXY) ahead of the company’s third-quarter 2025 earnings report, due November 10. According to InvestingPro data, analyst targets for OXY range from $38 to $63, with the stock currently trading at $42.32. The company’s Fair Value analysis suggests the stock is fairly priced at current levels.
UBS noted that the OXYChem divestiture has been the most significant recent development for the company, with debt reduction representing the most positive aspect of the transaction.
Despite the debt reduction benefits, UBS viewed the OXYChem transaction as dilutive and believes it reduces the organic free cash flow uplift expected in 2026-2027.
On operational performance, UBS expects Occidental’s upstream operations to remain strong in the Permian Basin, with Gulf of America volumes potentially exceeding expectations due to minimal hurricane impacts during the quarter.
Looking ahead, UBS anticipates Occidental Petroleum will maintain its current production levels, though some capital expenditure previously allocated to the chemicals business could potentially be redirected to upstream operations.
In other recent news, Occidental Petroleum Corporation has provided insights into its third-quarter 2025 earnings considerations through a filing with the Securities and Exchange Commission. While specific financial figures were not disclosed, the company highlighted factors that could impact its financial results. Additionally, Occidental’s direct air capture project may face challenges as the U.S. government considers cutting $12 billion in clean energy funding, potentially affecting the project’s future. In a significant business move, Occidental announced the sale of its chemical business, Oxychem, to Berkshire Hathaway for $9.7 billion, slightly below earlier reported figures.
Following this sale, BofA Securities raised its price target on Occidental Petroleum to $47 while maintaining a Neutral rating. Jefferies also maintained its Hold rating and a $44 price target, expressing surprise at the market’s reaction to the divestiture. However, Evercore ISI lowered its price target to $38, citing concerns that the sale of Oxychem could be dilutive, as it divested a recurring revenue business expected to contribute significantly to future cash flow growth. These developments reflect a dynamic period for Occidental Petroleum, with varying analyst perspectives on its recent strategic decisions.
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