Can Ongoing Debt Reduction Boost the Prospects of Occidental Stock?

Core Insights - Occidental Petroleum Corporation (OXY) has significantly reduced its debt by $7.5 billion over the past 13 months, resulting in annual interest expense savings of $410 million, which enhances its financial health and flexibility [1][8] - The company is focusing on a leaner capital structure to better manage commodity price volatility and redirect capital towards high-return projects, thereby boosting investor confidence [2][5] - Management plans to continue this strategy with a $950 million sale of non-core assets, which will further reduce obligations and strengthen the company's long-term financial foundation [3][4] Financial Performance - Occidental's shares have increased by 14.1% in the past three months, outperforming the Zacks Oil and Gas-Integrated-United States industry's growth of 10.3% [7][8] - The current trailing 12-month Enterprise Value/Earnings before Interest Tax Depreciation and Amortization (EV/EBITDA TTM) for Occidental is 5.52X, which is higher than the industry average of 4.71X, indicating that the shares are trading at a premium [10] Sales Estimates - The Zacks Consensus Estimate for Occidental's 2025 sales indicates a year-over-year decline of 0.86%, while the 2026 estimate suggests a slight increase of 1% [12] - Current sales estimates for the upcoming quarters and years are as follows: - Q3 2025: $6.64 billion - Q4 2025: $6.71 billion - Full Year 2025: $26.65 billion - Full Year 2026: $26.92 billion [13]