Latest news with #oilIndustry
Yahoo
18-06-2025
- Business
- Yahoo
Prediction Occidental Petroleum Will Soar Over the Next 5 Years. Here's 1 Reason Why.
Occidental Petroleum has taken on a lot of debt to make acquisitions over the years. The oil company recently hit its near-term debt-reduction target. Achieving the company's next debt goal would transfer a lot of value from creditors to shareholders. 10 stocks we like better than Occidental Petroleum › Occidental Petroleum (NYSE: OXY) has a multitude of potential upside catalysts. From higher oil prices to Warren Buffett's buying to its non-oil growth drivers, the oil company has a lot of positives. However, I see one factor potentially playing a major role in driving up Occidental's stock price in the coming years -- deleveraging its balance sheet. Here's why I think it could give the oil stock the fuel to soar over the next five years. Debt has been an issue for Occidental Petroleum over the years. It borrowed a boatload of money in 2019 to buy Anadarko Petroleum, but that move backfired the next year when crude prices crashed. The company has been steadily reducing debt since then to shore up its financial position. However, it couldn't resist the opportunity to buy CrownRock last year. It spent $12 billion on the oil producer, $10.3 billion of which it funded with debt. Occidental has worked hard to reduce debt following that deal. It has repaid $6.8 billion since the third quarter of last year, exceeding its target of repaying $4.5 billion of debt principal within 12 months of closing the CrownRock deal well ahead of schedule. The company's next debt target is to reduce its principal balance below $15 billion. It ended the first quarter with over $25 billion of debt. Occidental plans to sell non-core assets and allocate excess free cash flow after funding capital projects and dividends to repay debt. This strategy will steadily shift value from creditors to equity holders. The company has a market cap of around $45 billion and more than $75 billion enterprise value, so a $10 billion shift in value from debt holders to equity investors could boost its value by over 20%. On top of the value shift, the debt reduction would reduce Occidental's interest expenses, boosting its earnings and free cash flow. Debt reduction is one of Occidental's many upside catalysts. I think it could be a key driver of the stock price in the coming year. Before you buy stock in Occidental Petroleum, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Occidental Petroleum wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor's total average return is 988% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Matt DiLallo has no position in any of the stocks mentioned. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy. Prediction Occidental Petroleum Will Soar Over the Next 5 Years. Here's 1 Reason Why. was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-06-2025
- Business
- Yahoo
Equities Drop, Oil Jumps Amid Israel-Iran Conflict
US equities fell on Tuesday, while oil prices advanced as tensions remained high between Israel and
Malay Mail
16-06-2025
- Business
- Malay Mail
PM Anwar: Oil industry steady despite Strait of Hormuz concerns amid Middle East tensions
KUALA LUMPUR, June 16 — The Israel-Iran conflict will not necessarily hurt the oil industry or price mechanisms of the commodity, said Prime Minister Datuk Seri Anwar Ibrahim. He made the statement after holding discussions with the Secretary-General of the Organisation of the Petroleum Exporting Countries (OPEC), Haitham Al Ghais, and major oil industry players on the sidelines of the Energy Asia 2025 conference today. 'Of course, they are monitoring the situation closely, but it does not necessarily hurt the industry or price mechanisms (of the commodity). We hope the conflict can be resolved much earlier,' he said. When asked about the impact of the conflict on the energy industry, Anwar stated that there are concerns about the potential closure of the Strait of Hormuz, a vital route for the export of oil and liquefied natural gas, as well as a key trade route for the Middle East region. At the same time, Anwar also announced major investments by Total, Italy-based ENI, and Saudi Aramco, which he said reflected confidence in Petronas' capabilities. 'Several key agreements related to investments in Malaysia will be signed at the Energy Asia 2025 Conference, which will be held over three days,' he added. Also taking place at Energy Asia is a closed-door session involving global chief executive officers and top-level leaders from key sectors such as oil and gas, energy, technology, finance, and professional services. This aims to chart a collective path to stimulate investment, enhance coordination, and accelerate the adoption of technology to drive Asia's energy transition. The Energy Asia 2025 Conference, themed 'Delivering Asia's Energy,' and being held from June 16–18, serves as a timely platform for Malaysia and the region to assess progress toward energy transition goals and reinforce national commitments toward achieving net-zero carbon emissions. The event is also seen as highly relevant amid the intersection of economic diversification and sustainable development, as countries shift from oil to renewable energy (RE) and adopt new technologies such as hydrogen and carbon capture. Earlier, Anwar delivered the keynote address and officiated the event, which will feature 180 prominent speakers from around the world and attract more than 4,000 delegates, including policymakers, energy professionals, and industry leaders. Among the main agenda items of the conference are a plenary session titled 'Energy Present, Energy Future: Pathways for Asia's Just Transition,' followed by a leadership dialogue —'Energy at the Crossroads: Policies, Technologies and Investments.' — Bernama
Bloomberg
07-06-2025
- Business
- Bloomberg
Will Trump's Plan to Lower Gasoline Prices Actually Pay Off?
The plan to lower gasoline prices may not be a great sign of the times. Wood Mackenzie's Ed Crooks explains why those prices are a barometer of the world economy. Energy Aspects' Amrita Sen says that the outlook for oil refineries looks dismal from 2027 onwards. But what hurt the oil industry, and what will low oil prices do to it? (Source: Bloomberg)
Free Malaysia Today
05-06-2025
- Business
- Free Malaysia Today
Petronas to cut 10% of workforce after profits slump
Petronas president and group CEO Tengku Muhammad Taufik Aziz said the company would also freeze promotions and hiring until December 2026. KUALA LUMPUR : Petronas will cut about 10% of its workforce in a company-wide restructuring as it looks to reduce costs due to falling crude prices and market volatility that have impacted its profits. Malaysia's state-owned oil firm will reduce headcount by upward of 5,000 people, Petronas president and group CEO Tengku Muhammad Taufik Aziz said in a briefing here today. It will also freeze promotions and hiring until December 2026, he said. Petronas's profits slid 32% in 2024 following a 21% drop in 2023. The challenges are slated to continue this year, in part due to a continued decline in Brent crude prices.
