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Research Alert: CFRA Keeps Hold Opinion On Shares Of Occidental Petroleum Corporation
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Research Alert: CFRA Keeps Hold Opinion On Shares Of Occidental Petroleum Corporation
Aug 8, 2025 4:07 AM

06:50 AM EDT, 08/08/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target of $50 (up by $5) reflects EV/EBITDA and DCF model analyses. We apply a 5.5x multiple of EV to projected 2026 EBITDA, below OXY's recent historical forward average, yielding a value of $46 per share. We think a discount is reasonable in light of what we see as an aggressive management style despite a near-term pricing outlook that we think will be mediocre. Our DCF model, using medium-term free cash flow growth of 4%, terminal growth of 2%, and discounted at a WACC of 7.7%, yields intrinsic value of $53 per share. We cut our 2025 EPS estimate by $0.32 to $2.41 and our 2026 estimate by $0.27 to $2.97. OXY is highly tethered to the economics of drilling in the Permian and the Rockies, which collectively comprise 75% of the company's upstream volumes. We see OXY spending through the cycle, but its debt maturity milestones total $4.5 billion in 2026. Unless commodity prices improve shortly, we think this may soak up almost all of OXY's discretionary cash flow in the 2025-2026 period.

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