Latest news with #OccidentalPetroleum
Yahoo
15 hours ago
- Business
- Yahoo
Occidental Petroleum Earnings Preview: What to Expect
Occidental Petroleum Corporation (OXY), headquartered in Houston, Texas, acquires, explores, and develops oil and gas properties. Valued at $42 billion by market cap, the company also manufactures and markets a variety of basic chemicals, vinyls and performance chemicals. The oil giant is expected to announce its fiscal second-quarter earnings for 2025 after the market closes on Wednesday, Aug. 6. Ahead of the event, analysts expect OXY to report a profit of $0.33 per share on a diluted basis, down 68% from $1.03 per share in the year-ago quarter. The company has consistently surpassed Wall Street's EPS estimates in its last four quarterly reports. More News from Barchart Nat-Gas Prices Erase Early Gains as Weekly EIA Inventories Build Crude Oil Prices Jump on Signs of a Tightening Supply Outlook Crude Oil Prices Climb on Supply Disruptions in Iraq Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. For the full year, analysts expect OXY to report EPS of $2.28, down 34.1% from $3.46 in fiscal 2024. However, its EPS is expected to rise 10.5% year-over-year to $2.52 in fiscal 2026. OXY stock has considerably underperformed the S&P 500 Index's ($SPX) 12.7% gains over the past 52 weeks, with shares down 31% during this period. Similarly, it underperformed the Energy Select Sector SPDR Fund's (XLE )7% losses over the same time frame. On May 7, OXY reported its Q1 results, and its shares closed up more than 6% in the following trading session. Its adjusted EPS of $0.87 surpassed Wall Street expectations of $0.73. The company's revenue was $6.8 billion, falling short of Wall Street forecasts of $7.2 billion. Analysts' consensus opinion on OXY stock is cautious, with a 'Hold' rating overall. Out of 23 analysts covering the stock, three advise a 'Strong Buy' rating, two suggest a 'Moderate Buy,' 16 give a 'Hold,' and two recommend a 'Strong Sell.' OXY's average analyst price target is $49.25, indicating a potential upside of 13.1% from the current levels. On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
3 days ago
- Business
- Yahoo
Why Occidental Petroleum Stock Slumped 15% in the First Half of 2025
Key Points High debt amid falling crude oil prices has hit investor sentiment in Occidental Petroleum. The markets, however, are overlooking the oil giant's cash flows and moves to repay debt. 10 stocks we like better than Occidental Petroleum › Occidental Petroleum (NYSE: OXY), an S&P 500 stock, was a significant underperformer in 2024 when it lost 17% of its value. Unfortunately for investors in the oil stock, its losing streak has continued into 2025 so far, with shares of Occidental shedding another 15% in the first half of the year according to data provided by S&P Global Market Intelligence. Crude oil prices have fallen in 2025, and that doesn't bode well for any oil producer. But is there more to Occidental stock's fall than just oil prices, or has the market overreacted and given investors a once-in-a-lifetime opportunity to buy a stock that even legendary investor Warren Buffett loves? Occidental Petroleum has plenty of cash and is paying bigger dividends It has been a volatile year for crude oil prices so far. In early April, benchmark crude oil prices even slid to four-year lows amid the tariff and trade uncertainty, among other things. Falling oil prices are a double whammy for Occidental Petroleum. They hurt earnings and cash flows, and they make it tougher for the company to service debt that has ballooned since its multibillion-dollar CrownRock acquisition in August last year. Occidental, however, paid debt worth $4.5 billion within five months of the acquisition, way ahead of its 12-month target. During its first quarter, the oil giant sold some noncore upstream assets as already planned last year and paid down another $2.3 billion in debt. Here's where things stand now for Occidental when it comes to debt: It has already repaid all of its debt maturing in 2025 and has only $284 million maturing over the next 14 months. With the company generating $2.1 billion in operating cash flow in Q1, Occidental can easily pay debt through 2026 and still have excess cash available to pay dividends and deploy elsewhere. Why Occidental stock can turn around Given Occidental's cash-flow and debt profile, the stock's price fall appears to be overdone. One problem is that Occidental doesn't hedge its price risk, which means its revenues and earnings are highly susceptible to the volatility in oil and gas prices. While the lack of hedging can benefit companies like Occidental in a high-oil-price environment, the reverse is true when commodity prices fall. That said, Occidental continues to generate strong cash flows. It also operates midstream and chemical businesses, both of which had a strong showing in Q1, and it's expanding its high-potential low carbon ventures business. In April, Occidental signed a 25-year carbon offtake agreement with fertilizer giant CF Industries to boost production of low-carbon products through sequestration technology. While the consistent drop in Occidental Petroleum's stock price largely mirrors a pullback in commodity prices, the company continues to build a strong balance sheet and remains committed to growing its dividend. Occidental increased its dividend by 9% in April and yields 2.3%. If and when oil prices recover, this beaten-down oil stock could quickly turn around. Should you buy stock in Occidental Petroleum right now? Before you buy stock in Occidental Petroleum, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Occidental Petroleum wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $679,653!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,046,308!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 179% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy. Why Occidental Petroleum Stock Slumped 15% in the First Half of 2025 was originally published by The Motley Fool Connectez-vous pour accéder à votre portefeuille
Globe and Mail
4 days ago
- Business
- Globe and Mail
Mizuho Securities Remains a Hold on Occidental Petroleum (OXY)
Mizuho Securities analyst Nitin Kumar CFA maintained a Hold rating on Occidental Petroleum yesterday and set a price target of $65.00. The company's shares closed yesterday at $45.07. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Kumar CFA covers the Energy sector, focusing on stocks such as Civitas Resources, Coterra Energy, and Murphy Oil. According to TipRanks, Kumar CFA has an average return of 5.9% and a 59.05% success rate on recommended stocks. In addition to Mizuho Securities, Occidental Petroleum also received a Hold from Roth MKM's Leo Mariani in a report issued yesterday. However, on June 30, Goldman Sachs maintained a Sell rating on Occidental Petroleum (NYSE: OXY). The company has a one-year high of $64.76 and a one-year low of $34.79. Currently, Occidental Petroleum has an average volume of 11.34M.
Business Insider
5 days ago
- Business
- Business Insider
Mizuho Securities Remains a Hold on Occidental Petroleum (OXY)
Mizuho Securities analyst Nitin Kumar CFA maintained a Hold rating on Occidental Petroleum yesterday and set a price target of $65.00. The company's shares closed yesterday at $45.07. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Kumar CFA covers the Energy sector, focusing on stocks such as Civitas Resources, Coterra Energy, and Murphy Oil. According to TipRanks, Kumar CFA has an average return of 5.9% and a 59.05% success rate on recommended stocks. In addition to Mizuho Securities, Occidental Petroleum also received a Hold from Roth MKM's Leo Mariani in a report issued yesterday. However, on June 30, Goldman Sachs maintained a Sell rating on Occidental Petroleum (NYSE: OXY).
Yahoo
5 days ago
- Business
- Yahoo
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 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. Image Source: Zacks Investment Research 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 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. Image Source: Zacks Investment Research 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. 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 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 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. 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. 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. Image Source: Zacks Investment Research 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. 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%. Image Source: Zacks Investment Research 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%. 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%. Image Source: Zacks Investment Research Hess Corporation's trailing 12-month ROE is 21.78%, which is better than its industry. 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. Image Source: Zacks Investment Research 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 the company continues to face headwinds from volatile commodity prices and returns that remain below industry averages, along with declining earnings 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. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ConocoPhillips (COP) : Free Stock Analysis Report Hess Corporation (HES) : Free Stock Analysis Report Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
