Occidental Petroleum Earnings Preview: What Investors Are Watching, Including Debt Levels

Occidental Petroleum Corp. OXY is set to report its third-quarter results on Tuesday after the closing bell. Here's a preview of what to expect. 

What To Know: Last quarter, Occidental Petroleum beat analyst estimates on the top and bottom lines, with earnings of $1.03 per share on revenue of $6.82 billion. The company has beat analysts' expectations in the past four consecutive quarters. 

According to data from Benzinga Pro, the Street expects Occidental Petroleum to report earnings of 74 cents and quarterly revenue of $7.232 billion. 

Debt Levels: In August, the company disclosed a $3 billion reduction in principal debt driven by strong organic cash flow and proceeds from divestitures. 

"We are pleased with the rapid and significant progress of our deleveraging program along with enhancements made to our already premier portfolio. By the end of the third quarter, we expect to achieve nearly 85% of our near-term $4.5 billion debt reduction commitment," said Vicki Hollub, president and CEO. 

Occidental Petroleum completed or announced divestments of approximately $1.7 billion in 2024, and investors will be looking closely at the company's debt levels in its third-quarter report. 

What Analysts Say: Last quarter, Scotiabank analyst Paul Cheng noted the performance of the company's OxyChem and Upstream divisions were in line with Wall Street expectations, while its Midstream division reported a significant beat. The Street will be watching these divisions again closely. 

The three most-recent analyst ratings have an average price target of $63.33 representing an implied 24.4% upside for Occidental Petroleum from the most recent analyst ratings.

Last Friday, ahead of the company's earnings release, JPMorgan analyst John Royall gave Occidental Petroleum a Neutral rating and a $56 price target. 

OXY Price Action: According to Benzinga Pro, Occidental Petroleum shares ended Monday's session 0.57% higher at $50.81. 

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