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In a challenging market environment, Occidental Petroleum Corporation's stock (NYSE:OXY) has touched a 52-week low, dipping to $47.18. With a market capitalization of $44.4 billion and a P/E ratio of 11.5, the company maintains strong fundamentals, including an impressive gross profit margin of 61.8%. According to InvestingPro analysis, the stock appears undervalued at current levels. This latest price level reflects a significant downturn from the company's performance over the past year, with Occidental Petro witnessing a 1-year change of -19.33%. Despite market challenges, InvestingPro data reveals the company has maintained dividend payments for 51 consecutive years, demonstrating remarkable financial stability. Investors are closely monitoring the stock as it navigates through the volatile energy sector, which has been impacted by fluctuating oil prices and shifting demand dynamics. The 52-week low serves as a critical point of analysis for both the company and shareholders as they strategize for the future amidst a landscape of economic uncertainty. For comprehensive insights and additional ProTips on OXY's valuation and future prospects, access the detailed Pro Research Report available on InvestingPro.
In other recent news, Occidental Petroleum has been making significant strides in its operations and financial health. The company reported a robust third-quarter performance in 2024, achieving record-high U.S. production and substantial debt reduction. The company generated $1.5 billion in free cash flow and reported an adjusted profit of $1.00 per diluted share.
The company's third-quarter achievements included a significant debt reduction, paying off $4 billion and reaching approximately 90% of its short-term $4.5 billion debt reduction target within just two months after finalizing the CrownRock acquisition. Susquehanna maintained a Positive rating on shares of Occidental Petroleum but reduced the stock's price target to $65 from the previous $77 following these results.
Occidental Petroleum is expected to reach a production level of 1,450 thousand barrels of oil equivalent per day (Mboe/d) in the fourth quarter, anchored by robust performance from new wells in the Permian Basin and an increase in projections for its recently acquired CrownRock assets. The company has expressed intentions to continue operating a five-rig program within its CrownRock assets throughout 2025, which is anticipated to yield mid-single-digit growth.
The projected capital expenditures for 2025 are estimated to be between $900 million and $950 million. The company also plans to reduce its capital budget for low-carbon ventures to $450 million by 2025, while increasing the chemicals segment capital budget to $900 million. These are recent developments that highlight the company's commitment to its deleveraging strategy, efficiency, and stability in the face of potential market volatility.
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