03:07 PM EST, 01/22/2025 (MT Newswires) -- Occidental Petroleum ( OXY ) is expected to report modest cash generation in Q4, with no major asset sales or significant debt reduction, UBS Securities said in an earnings preview emailed Wednesday.

The firm anticipates under $100 million in cash flow for the quarter.

In addition, UBS expects CrownRock's integration to drive 0 to 2% total company volume growth in 2025, with CrownRock's five-rig program supporting mid-single-digit growth at the asset level, while the rest of Occidental's business is expected to remain flat.

"We look for a STRATOS update, with construction on track for the first 250 thousand metric tons per annum of capacity to be online by mid-year," UBS added.

Additionally, the expiration of two oil transportation contracts, one at the end of Q1 and another at the end of Q3, is projected to provide about $180 million in additional free cash flow in 2025, growing to roughly $400 million annually by 2026, according to the firm.

UBS increased price target on Occidental's stock to $54 from $51 and maintained its neutral rating.

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