David Deckelbaum, an analyst from TD Cowen, maintained the Hold rating on Occidental Petroleum. The associated price target was raised to $45.00.
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David Deckelbaum has given his Hold rating due to a combination of factors influencing Occidental Petroleum’s performance. The company’s second-quarter production results were largely in line with expectations, with a slight outperformance in the Rockies region offset by disruptions in the Gulf of America. Additionally, while the EBITDAX showed a modest 2% beat, this was primarily driven by the Midstream segment.
Occidental Petroleum’s financial strategy also played a role in the Hold rating. The company has been actively reducing its capital expenditure, particularly in the Permian region, due to cost efficiencies and service cost deflation. Despite these reductions, production guidance remains stable. Furthermore, Occidental’s efforts to pay down debt through non-core asset sales are commendable, yet the overall financial outlook remains cautious, especially with the mixed performance in segments like OxyChem. These elements combined suggest a balanced but cautious approach, justifying the Hold rating.
Deckelbaum covers the Energy sector, focusing on stocks such as Sable Offshore, California Resources Corp, and Coterra Energy. According to TipRanks, Deckelbaum has an average return of 4.6% and a 41.06% success rate on recommended stocks.
In another report released yesterday, Roth MKM also maintained a Hold rating on the stock with a $45.00 price target.