OXY(US:OXY) Zhi Tong Cai Jing·2025-06-13 23:10Group 1 - The stock price of Occidental Petroleum (OXY.US) has rebounded due to rising global oil prices, following a period of underperformance [1] - The recent escalation of tensions in the Middle East, particularly due to Israeli airstrikes on Iran, has led to significant fluctuations in international oil prices, benefiting the energy sector [1] - Occidental Petroleum's stock rose nearly 3.8% to $46.45 per share, providing a positive signal for investors after a year of approximately 23% decline in stock price due to low energy prices and high debt levels [1] Group 2 - The company's high debt levels are attributed to its aggressive acquisition strategy, including a $50 billion acquisition of Anadarko Petroleum in 2019, which involved issuing $8.5 billion in preferred stock to Berkshire Hathaway [1] - In August 2023, Occidental Petroleum further increased its debt by acquiring CrownRock Resources for $12 billion, leading to downgrades from several brokerages and a decline in market confidence [1] - Despite challenges, some analysts believe Occidental Petroleum is gradually improving its financial situation, having reduced debt by $2.4 billion in the current year and a total of $6.8 billion since Q3 2024 [2] Group 3 - The company's current debt target is $15 billion, with expectations to achieve this by 2027, while generating approximately $4 billion in free cash flow annually over the next two years [2] - Analysts predict that if oil prices remain high or increase further, the likelihood of achieving the debt reduction target will significantly improve [2] - Raymond James analyst John Freeman has rated the stock as "outperform" with a target price of $51, indicating a positive outlook for the company's financial strategy focusing on debt repayment and free cash flow growth [2]