OXY's International Operations Are Powering Multi-Dimensional Growth
Occidental continues to deepen its presence in the Middle East and North Africa, with strategic stakes in high-potential regions. The company is the largest independent oil producer in Oman. OXY derives nearly one-fifth of the total production and over a quarter of its proved reserves from the broader Middle East. Occidental is also integrating decarbonization into its global operations through the 1PointFive platform, which is pioneering direct air capture technology.
The company's recent memoranda of understanding with Algeria's Sonatrach signal ongoing efforts to explore new hydrocarbon zones, unlocking further production upside and strengthening long-term international partnerships. Occidental expects its international operation to contribute in the range of 226-236 thousand barrels of oil equivalents per day in 2025 to total production.
The international initiatives enhance Occidental's free cash flow profile and provide a cushion against domestic concentration risk. With robust operations in resilient global basins and a growing portfolio of low-carbon technologies, Occidental trades at an attractive valuation and offers compelling upside potential as its international strategy continues to evolve.
How International Operations Aid U.S. Oil & Gas Companies
International operations support U.S.-based oil and gas companies by diversifying revenue streams, stabilizing cash flows and reducing reliance on domestic markets. It supports companies like ExxonMobil XOM and Chevron CVX by providing diversified production sources and reducing exposure to domestic market fluctuations.
ExonMobil's offshore assets in Guyana and LNG projects in Papua New Guinea drive high-margin growth, while Chevron's stakes in Kazakhstan's Tengiz field and Australia's LNG operations contribute significantly to earnings and cash flow. International exposure positions both companies to capitalize on emerging market demand and global energy transition opportunities.
OXY's Earnings Estimate is Going Down
The Zacks Consensus Estimate for Occidental's earnings per share in 2025 and 2026 has decreased 10.16% and 17.38%, respectively, in the past 60 days.
Occidental's ROE Lower Than the Industry
Return on equity ('ROE'), a profitability measure, reflects how effectively a company utilizes its shareholders' funds to generate income. The trailing 12-month ROE of OXY is 16.6%, a tad lower than its industry's 16.89%.
OXY Stock's Price Performance
Occidental's shares have gained 3.2% in the past month compared with the industry 's growth of 5.4%.
OXY's Zacks Rank
Occidental currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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Globe and Mail
a day ago
- Globe and Mail
OXY Stock is Trading Above 50-Day SMA: Time to Buy, Hold or Sell?
Occidental Petroleum Corporation OXY is trading above its 50-day simple moving average (SMA), signaling a bullish trend. The company is gaining from its focus on the Permian Basin and contributions from inorganic assets. The company operates in a highly competitive industry, but Occidental maintains a competitive edge over its peers due to its low-cost operations and a portfolio of high-quality assets located across various regions worldwide. OXY's 50-Day SMA The 50-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as it is the first marker of a stock's uptrend or downtrend. Occidental has rallied 22.2% in the past three months, outperforming the Zacks Oil and Gas – Integrated- United States industry, sector and Zacks S&P 500 Composite's return in the same time frame. Occidental's shares have outperformed another operator, ConocoPhillips COP, in the same period. COP shares have gained 11.6% in the past month. Price Performance (Three months) Should you consider adding OXY stock to your portfolio solely based on its recent price gains? Let's take a closer look at the key factors that can help investors determine whether now is a favorable entry point. Key Drivers Behind Occidental's Steady Stock Performance Occidental continues to benefit from its strategic acquisitions, which have significantly boosted production volumes and top-line performance. The company's acquisition of Anadarko Petroleum in 2019 and its acquisition of CrownRock L.P. in 2024 added high-margin production and low-breakeven inventory to its oil and gas portfolio in the Permian Basin. Occidental's international assets play a pivotal role in driving its growth and resilience. International assets, such as Qatar's Dolphin gas project, Oman's Mukhaizna oilfields and the UAE's Al Hosn Gas, contribute significantly to production and cash flow. Occidental expects its international operation to contribute in the range of 226-236 thousand barrels of oil equivalents per day in 2025 to total production. Occidental continues to gain from its low-cost, high-margin operations in the Permian Basin, complemented by steady contributions from international assets. This solid operational performance supports the company's dual focus on reducing debt and enhancing shareholder returns. The company lowered debt by $6.8 billion in the past 10 months, which lowered its annual interest expenses by $370 million, boosting net income. Occidental reinforces its long-term value proposition through systematic capital investment, especially in its core Permian Basin operations and low-carbon ventures. OXY aims to invest in the range of $7.2-$7.4 billion in 2025, out of which $3.5-$3.7 billion will be in the Permian Basin. By focusing capital on tier-one assets and technology-driven enhancements, Occidental has improved well productivity and reduced lifting costs across its portfolio. Headwinds for Occidental Stock Occidental's operating results are influenced by shifts in demand and the volatility of both global and local commodity prices. As of Dec. 31, 2024, the company had no active commodity hedges in place, leaving it fully exposed to market fluctuations. A significant decline in commodity prices from current levels could adversely affect OXY's financial performance. Occidental's Earnings Estimates are Going Down The Zacks Consensus Estimate for Occidental's 2025 and 2026 earnings per share has moved down 4.64% and 11.03%, respectively, in the past 60 days. The Zacks Consensus Estimate for ConocoPhillips' 2025 and 2026 earnings per share also moved down 4.6% and 11.4%, respectively, in the past 60 days. OXY Stock's Earnings Surprise History The stable performance of the company allowed it to surpass earnings estimates in each of the last four reported quarters, the average earnings surprise being 24.34%. Another operator in the same industry, Hess Corporation HES, also reported positive surprise in the last four reported quarters. HES' average earnings surprise was 9.58%. Occidental's ROE Lower Than the Industry Return on equity ('ROE') is a key indicator of a company's financial performance. It reflects how effectively a corporation uses shareholders' equity to generate profits and is widely regarded as a measure of profitability and operational efficiency. Occidental's ROE is lower than the industry average in the trailing 12 months. ROE of OXY was 16.6% compared with the industry average of 16.89%. Hess Corporation's trailing 12-month ROE is 21.78%, which is better than its industry. OXY's Shares Are Trading at a Premium Occidental's shares are currently expensive on a relative basis, with its current trailing 12-month Enterprise Value/Earnings before Interest Tax Depreciation and Amortization (EV/EBITDA TTM) being 5.35X compared with its industry average of 4.97X. Wrapping Up Occidental's focus on debt reduction, combined with the strength of its domestic and international operations and the benefits from recent acquisitions, is expected to support its overall performance. However, the company continues to face headwinds from volatile commodity prices and returns that remain below industry averages, along with declining earnings estimates. Despite these challenges, holding this Zacks Rank #3 (Hold) stock remains advisable due to its robust U.S. operations and significant presence in the resource-rich Permian Basin. 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Globe and Mail
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- Globe and Mail
Expro Secures Contract With Woodside Energy for Trion Deepwater Project
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Globe and Mail
a day ago
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PetroTal Announces Q2 2025 Operations and Financial Updates
Calgary, Alberta and Houston, Texas--(Newsfile Corp. - July 14, 2025) - PetroTal Corp. (TSX: TAL) (AIM: PTAL) (OTCQX: PTALF) ("PetroTal" or the "Company") is pleased to provide the following operational and financial updates. All amounts are in US dollars unless stated otherwise. Key Highlights Group production averaged approximately 21,039 barrels of oil per day ("bopd") in Q2 2025, a 15% increase over the same period last year; H1 2025 production averaged approximately 22,160 bopd, a 20% increase over H1 2024; Successfully replaced electric submersible pumps in three wells at the Bretana field, with the one remaining pump replacement scheduled for completion during the month of July, 2025; Paid a regular quarterly dividend of $0.015 per share on June 13, bringing YTD and cumulative returns of capital to shareholders to approximately $30 million and $140 million, respectively; Total cash of $142.1 million as of June 30, 2025, including $31.9 million held in escrow from the first tranche of the previously announced COFIDE term loan; Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented: "PetroTal's preliminary Q2 2025 results reflect continued strong operational performance from our core asset base. I am pleased to report that the Bretana field continues to produce near all-time highs, in-line with expectations. Our operations team has already replaced three out of the four electric submersible pumps that failed earlier this year, restoring approximately 3,300 bopd of production capacity that was previously offline. "We are continuing preparations for our Block 131 drilling program, although we have experienced delays in the commissioning of our new drilling rig. Despite this delay, our YTD production continues to track directly in-line with guidance, while our capital expenditures are substantially below budget so far in 2025. We intend to provide additional details on our remaining 2025 development program, including associated production expectations, with Q2 2025 results on August 7, 2025." Q2 2025 Production and Operations Update PetroTal's group production averaged 21,039 bopd in Q2 2025, including 20,512 bopd from the Bretana field (Block 95; PetroTal 100% WI) and 526 bopd from the Los Angeles field (Block 131; PetroTal 100% WI). Bretana production declined approximately 2,150 bopd relative to the prior quarter, due to a combination of natural declines and previously disclosed pump failures in four producing wells in Q4 2024 and Q1 2025. Three of the pumps have already been replaced, restoring approximately 3,300 bopd of production capacity, while replacement of the remaining pump is expected to be completed by the end of July 2025. Los Angeles field production declined by approximately 90 bopd relative to the prior quarter, due to planned well-logging activities which required the shut-in of targeted wells. Once PetroTal has completed the pump replacements at Bretana, it will move the service rig to the Los Angeles field, where a workover program is scheduled to begin by September 2025. PetroTal continues to advance preparations for its planned drilling program at the Los Angeles field, aiming to have its drilling rig available once the workover program is completed. Importantly, the Los Angeles field currently represents less than 5% of PetroTal's corporate production, and the delay is not expected to materially impact 2025 production guidance. As of June 30, PetroTal's 2025 YTD capital expenditures were approximately $40-50 million. Over the next three to six months, pump replacements at Block 95 and the workover stimulation program at Los Angeles remain on track to support production. The Erosion Control project is also continuing as planned, with no major changes to the expected project completion date or budget. PetroTal will provide a comprehensive update on its 2025 development program, including revised timelines and production expectations, with its Q2 2025 results announcement on August 7, 2025. Cash and Liquidity Update PetroTal ended Q2 2025 with a total cash position of $142.1 million, of which approximately $99.3 million was unrestricted. This compares to total cash of $113.6 million at the end of Q1 2025 and $95.8 million one year ago. As disclosed previously on May 13, 2025, PetroTal entered into a term loan with a syndicate of Peruvian banks in the second quarter of 2025. The first tranche of the loan, amounting to $50 million, was drawn on May 20, 2025, to fund ongoing expenses associated with the erosion control project. Of the approximately $42.8 million that PetroTal carried as Restricted Cash on June 30, approximately $31.9 million was related to the escrow account of the COFIDE loan, as previously announced on May 12, 2025. As of June 30, PetroTal's unaudited accounts payable and receivable were approximately $57.1 million and $65.8 million, respectively (vs. comparable values of $60.0 million and $87.0 million as of March 31, 2025, respectively). PetroTal maintains production hedges on approximately 35% of its forecast 2025 production volumes. The costless collars have a Brent floor price of $65.00/bbl and a ceiling of $82.50/bbl, with a cap of $102.50/bbl. As of Monday July 7, PetroTal's production hedges had a present value of approximately $3.5 million. Management Appointment Jose Contreras, who served as PetroTal's Chief Operating Officer since May 2023, departed the Company on June 13, 2025. Max Torres, previously PetroTal's Vice President of Exploration since August 2024, has been appointed Interim Chief Operating Officer. Mr. Torres brings over 30 years of experience in the global oil and gas industry, including senior management roles at Repsol and Ecopetrol. PetroTal thanks Mr. Contreras for his contributions and wishes him well. The Company has engaged an executive search firm to find a permanent replacement for the Chief Operating Officer position. Corporate Presentation Update The Company has updated its Corporate Presentation, available for download or viewing at Q2 2025 Webcast on Thursday August 7, 2025 PetroTal's management team will host a webcast to discuss its Q2 2025 Results on Thursday August 7, 2025 at 9:00am CT (Houston) and 3:00pm BST (London). Please see the link below to register. ABOUT PETROTAL PetroTal is a publicly traded, tri‐quoted (TSX: TAL) (AIM: PTAL) (OTCQX: PTALF) oil and gas development and production Company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. PetroTal's flagship asset is its 100% working interest in the Bretaña Norte oil field in Peru's Block 95, where oil production was initiated in June 2018. In early 2022, PetroTal became the largest crude oil producer in Peru. The Company's management team has significant experience in developing and exploring for oil in Peru and is led by a Board of Directors that is focused on safely and cost effectively developing its portfolio of assets. It is actively building new initiatives to champion community sensitive energy production, benefiting all stakeholders. For further information, please see the Company's website at the Company's filed documents at or below: Camilo McAllister Executive Vice President and Chief Financial Officer Cmcallister@ T: (713) 253-4997 Manolo Zuniga President and Chief Executive Officer Mzuniga@ T: (713) 609-9101 PetroTal Investor Relations InvestorRelations@ Celicourt Communications Mark Antelme / Jimmy Lea petrotal@ T : +44 (0) 20 7770 6424 Strand Hanson Limited (Nominated & Financial Adviser) Ritchie Balmer / James Spinney / Robert Collins T: +44 (0) 207 409 3494 Stifel Nicolaus Europe Limited (Joint Broker) Callum Stewart / Simon Mensley / Ashton Clanfield T: +44 (0) 20 7710 7600 Peel Hunt LLP (Joint Broker) Richard Crichton / Georgia Langoulant T: +44 (0) 20 7418 8900 READER ADVISORIES FORWARD-LOOKING STATEMENTS: This press release contains certain statements that may be deemed to be forward-looking statements. Such statements relate to possible future events, including, but not limited to: oil production levels and production capacity, including from pump replacements at the Bretana field, and the workover program at the Los Angeles field; PetroTal's 2025 development program for drilling, completions and other activities, including Block 131; plans and expectations with respect to the erosion control project; and PetroTal's expectations with respect to dividends and share buybacks. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "believe", "expect", "plan", "estimate", "potential", "will", "should", "continue", "may", "objective", "intend" and similar expressions. The forward-looking statements provided in this press release are based on management's current belief, based on currently available information, as to the outcome and timing of future events. The forward-looking statements are based on certain key expectations and assumptions made by the Company, including, but not limited to, expectations and assumptions concerning the ability of existing infrastructure to deliver production and the anticipated capital expenditures associated therewith, the ability to obtain and maintain necessary permits and licenses, the ability of government groups to effectively achieve objectives in respect of reducing social conflict and collaborating towards continued investment in the energy sector, reservoir characteristics, recovery factor, exploration upside, prevailing commodity prices and the actual prices received for PetroTal's products, including pursuant to hedging arrangements, the availability and performance of drilling rigs, facilities, pipelines, other oilfield services and skilled labour, royalty regimes and exchange rates, the impact of inflation on costs, the application of regulatory and licensing requirements, the accuracy of PetroTal's geological interpretation of its drilling and land opportunities, current legislation, receipt of required regulatory approval, the success of future drilling and development activities, the performance of new wells, future river water levels, the Company's growth strategy, general economic conditions and availability of required equipment and services. PetroTal cautions that forward-looking statements relating to PetroTal are subject to all of the risks, uncertainties and other factors, which may cause the actual results, performance, capital expenditures or achievements of the Company to differ materially from anticipated future results, performance, capital expenditures or achievement expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those set forth in the forward-looking statements include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses; and health, safety and environmental risks), business performance, legal and legislative developments including changes in tax laws and legislation affecting the oil and gas industry and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures, credit ratings and risks, fluctuations in interest rates and currency values, changes in the financial landscape both domestically and abroad, including volatility in the stock market and financial system, wars (including Russia's war in Ukraine and the Israeli-Hamas conflict), regulatory developments, commodity price volatility, price differentials and the actual prices received for products, exchange rate fluctuations, legal, political and economic instability in Peru, access to transportation routes and markets for the Company's production, changes in legislation affecting the oil and gas industry, changes in the financial landscape both domestically and abroad (including volatility in the stock market and financial system) and the occurrence of weather-related and other natural catastrophes. Readers are cautioned that the foregoing list of factors is not exhaustive. Please refer to the annual information form for the year ended December 31, 2024 and the management's discussion and analysis for the three months ended March 31, 2025 for additional risk factors relating to PetroTal, which can be accessed either on PetroTal's website at or under the Company's profile on The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. OIL REFERENCES: All references to "oil" or "crude oil" production, revenue or sales in this press release mean "heavy crude oil" as defined in National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). SHORT TERM RESULTS: References in this press release to peak rates, initial production rates, current production rates, 30-day production rates and other short-term production rates are useful in confirming the presence of hydrocarbons, however such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long-term performance or of ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production of PetroTal. The Company cautions that such results should be considered to be preliminary. FOFI DISCLOSURE: This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about PetroTal's prospective results of operations and production results, 2025 drilling program and budget, well investment payback, cash position, liquidity and components thereof, all of which are subject to the same assumptions, risk factors, limitations and qualifications as set forth in the above paragraphs. FOFI contained in this press release was approved by management as of the date of this press release and was included for the purpose of providing further information about PetroTal's anticipated future business operations. PetroTal and its management believe that FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments, and represent, to the best of management's knowledge and opinion, the Company's expected course of action. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results. PetroTal disclaims any intention or obligation to update or revise any FOFI contained in this press release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this press release should not be used for purposes other than for which it is disclosed herein. All FOFI contained in this press release complies with the requirements of Canadian securities legislation, including NI 51-101. Changes in forecast commodity prices, differences in the timing of capital expenditures, and variances in average production estimates can have a significant impact on the key performance measures included in PetroTal's guidance. The Company's actual results may differ materially from these estimates.
