JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
HOUSTON - Occidental (NYSE: OXY), a major energy company with a market capitalization of $45.9 billion, announced today that it has achieved its near-term debt repayment target by paying off $4.5 billion in the last quarter of 2024. According to InvestingPro data, the company’s debt-to-equity ratio stands at 1.05, showing meaningful progress in its deleveraging efforts. Additionally, the company has signed agreements to divest certain upstream assets for $1.2 billion in the first quarter of 2025. These assets include non-operated properties in the Rockies and selected Permian Basin assets not critical to Occidental’s immediate development plans. The company’s strong operational performance is reflected in its impressive EBITDA of $12.9 billion over the last twelve months, and InvestingPro analysis suggests the stock is currently undervalued.
The agreements, expected to close within the first quarter of 2025, will direct the proceeds towards the company’s remaining debt maturities for the year. President and CEO Vicki Hollub expressed satisfaction with reaching the deleveraging milestone within five months post the CrownRock acquisition, and seven months ahead of schedule. Hollub stated that these transactions are part of a strategy to improve the company’s portfolio and expedite progress towards medium-term balance sheet targets and enhanced shareholder returns.
Occidental plans to continue its deleveraging efforts through free cash flow and further divestitures. The company is a significant oil and gas producer with operations primarily in the United States, the Middle East, and North Africa. It is known for its production in the Permian and DJ basins, and offshore in the Gulf of America. Occidental also has a midstream and marketing segment, as well as a chemical subsidiary, OxyChem, and a low-carbon venture focused on reducing emissions. Notable among its achievements is a 51-year track record of maintaining dividend payments, with a current dividend yield of 1.83%.
The press release also included forward-looking statements, cautioning that actual results could vary due to factors such as economic conditions, commodity pricing, operational risks, regulatory changes, and other uncertainties. Occidental’s financial outlook and strategic plans are subject to risks including market volatility, changes in the regulatory environment, and the performance of the company’s assets. For a comprehensive analysis of Occidental’s financial health, operational metrics, and future prospects, investors can access detailed Pro Research Reports available on InvestingPro.
This news article is based on a press release statement from Occidental.
In other recent news, Occidental Petroleum (NYSE:OXY) has experienced a series of analyst evaluations, alongside industry developments. Goldman Sachs downgraded Occidental Petroleum from Neutral to Sell, with a revised price target of $45. This was based on the company’s focus on reducing debt, potentially limiting shareholder returns. Mizuho (NYSE:MFG) Securities also adjusted its outlook on Occidental shares, reducing the price target to $68 while maintaining a Neutral rating. This adjustment reflects expectations of a slight underperformance in Occidental’s fourth-quarter earnings and cash flow per share. In contrast, JPMorgan increased its price target for Occidental marginally from $58.00 to $59.00, maintaining a Neutral rating, with expectations of in-line operational performance.
In the energy sector, Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX), APA Corporation, and Occidental Petroleum have experienced gains due to a rebound in crude oil prices. The recovery in oil prices suggests a more favorable business environment for these companies, which is reflected in their stock prices. However, energy stocks remain sensitive to fluctuations in oil prices and further political developments.
Civitas Resources, an oil and gas producer, is considering selling some or all of its assets in the Denver-Julesburg Basin (DJ Basin) in Colorado. The assets could be valued at more than $4 billion, offering Civitas additional funds for acquisitions and debt reduction.
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