Occidental Petroleum Corp. shares slid 3.22% to $24.62 Tuesday, on what proved to be an all-around rough trading session for the stock market, with the S&P 500 Index SPX falling 0.21% to 4,188.13 and Dow Jones Industrial Average DJIA falling 0.24% to 34,312.46. The stock’s fall snapped a two-day winning streak.
Occidental Petroleum Corp. closed $7.90 below its 52-week high ($32.52), which the company achieved on March 5th. The stock underperformed when compared to some of its competitors Tuesday, as Exxon Mobil Corp. XOM fell 2.26% to $58.26, Chevron Corp. CVX fell 1.64% to $103.87, and ConocoPhillips COP fell 2.17% to $54.88. Trading volume (13.7 M) remained 3.4 million below its 50-day average volume of 17.1 M.
Occidental Petroleum only saw a mere $0.5 billion in divestitures, relatively small given the company’s recent divestitures. The majority of this came from WES unit sales. The company saw $1.6 billion in FCF generation for the quarter, representing the highest quarterly FCF for the company since 2011, cash flow which it can use to pay off debt. It also represents a 25% annualized FCF yield for the company. The company managed to improve its balance sheet by $0.5 billion and has strong room to continue growing it.
Occidental Petroleum repaid $9.6 billion in debt with $7 billion in near-term debt maturities. The company’s overhead + capital budget is $4.7 billion, or ~$11-12/barrel, which is an incredibly manageable budget. Capital spending and divestments continue to be manageable as the company continues to balance out its spending.