Occidental Petroleum Corporation (NYSE:OXY) is one of the 12 Best American Energy Stocks to Buy Right Now. On July 14, Mizuho increased its price target for Occidental Petroleum Corporation (NYSE:OXY) from $58 to $65 and kept a Neutral rating on the stock.
Mizuho expects the company to miss the consensus EBITDA estimates by about 8% in Q2 2025. This miss is attributed to the front-weighted capital spending, which significantly impacted free cash flow. Mizuho projects the free cash flow to be about 53% below street expectations.
Oil derricks in the background with a few workers in the foreground, emphasizing the company’s oil and gas production activities.
According to Mizuho’s review of Occidental Petroleum Corporation’s (NYSE:OXY) recent 8-K filing, the company is seeing a slight impact on oil volumes in the Gulf of America, some strength in oil and liquids pricing, and weakness in US natural gas realizations.
The firm attributed the expected miss in free cash flow primarily to heavy spending during the quarter, with about 55% of the 2025 budget allocated to the first half of the year. Based on the previous commentary by the company’s management, Mizuho believes these headwinds are not expected to continue into the second half of 2025.
Occidental Petroleum Corporation (NYSE:OXY) is an American multinational energy company with assets primarily in the United States, the Middle East, and North Africa. The company is one of the largest oil and gas producers in the US.
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Disclosure: None. This article is originally published at Insider Monkey.
