Occidental Petroleum Corp (NYSE: OXY) Successfully Reduces Debt by $3 Billion in Q3 2024
Occidental Petroleum Corp (NYSE: OXY) has made significant progress in reducing its principal debt, achieving nearly 85% of its $4.5 billion debt reduction target in the third quarter of 2024. This accomplishment was supported by the company's strong cash flow and strategic divestitures, including a recent public offering that generated $700 million.
CrownRock Holdings plans to sell 29,560,619 shares of Occidental's common stock through an underwritten secondary public offering, with all proceeds going to CrownRock Holdings. Goldman Sachs has resumed coverage on Occidental with a Neutral rating following the completion of its acquisition of CrownRock, which has expanded the company's presence in the Permian Basin.
The escalating tensions in the Middle East have driven a rise in oil prices, benefiting major U.S. energy companies like Occidental Petroleum. Additionally, the impending Hurricane Francine has led to the suspension of operations in the Gulf of Mexico, potentially impacting oil supplies.
Despite challenges, Occidental reported strong performance in Q2 2024, with the highest quarterly production in four years and $1.3 billion in free cash flow.
InvestingPro Insights
As Occidental Petroleum Corp (NYSE: OXY) gears up to release its Q3 2024 results, InvestingPro data reveals that the company maintains a solid financial foundation with a market capitalization of $50.44 billion and a P/E ratio of 12.36. OXY has also maintained dividend payments for 51 consecutive years, showcasing its commitment to shareholder returns.
InvestingPro Tips suggest that while OXY faces challenges, it remains profitable, with analysts forecasting continued profitability. Investors seeking more in-depth analysis can access 15 additional tips from InvestingPro to better understand OXY's position in the energy sector.
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