03:43 PM EDT, 10/17/2024 (MT Newswires) -- Occidental Petroleum ( OXY ) $3.8 billion debt reduction in Q3 is "most important" for bolstering the company's outlook, UBS Securities said Wednesday in a report.

"Positive updates" on debt, integration with CrownRock after the $12 billion acquisition closed Aug. 1 and low carbon venture projects are expected, UBS said. Results from Q3 are set for Nov. 12.

UBS projects Q3 cash flow of $2.90 a share, trailing Wall Street's $2.99 estimate, and the production forecast was trimmed following the sale of acreage in the Barilla Draw field in the Texas Delaware Basin.

Following the Barilla Draw and Western Midstream Partners ( WES ) divestitures, Occidental completed $1.7 billion of asset sales this year, and proceeds, along with free cash flow and cash on hand, will cut debt by $3.8 billion in Q3, covering 85% of the near-term $4.5 billion goal, UBS said.

UBS reiterated its neutral rating on Occidental Petroleum ( OXY ) with a 12-month price target of $59.

Shares of Occidental Petroleum ( OXY ) rose 0.8% in recent Thursday trading.

Price: 51.65, Change: +0.40, Percent Change: +0.77