Occidental's Debt Reduction, Carbon Strategy Support Outlook, UBS Says

03:32 PM EST, 11/10/2026 (MT Newswires) -- Occidental Petroleum (OXY) should benefit from debt reduction and new carbon dioxide supply deals, while concerns around a softer Q4 production outlook appear manageable, UBS Securities said Monday in a report. Occidental's Q3 cash flow per share of $4.05 beat UBS's $3.74 estimate and the $3.66 consensus estimate, the report said. The company's Q4 total production guidance of 1.43 million to 1.47 million barrels of oil equivalent a day trails UBS's estimate of 1.48 million and the consensus estimate of 1.47 million, reflecting continued Gulf of Mexico headwinds and the effect of international production-sharing contracts, UBS said. Occidental's STRATOS plant in Texas, designed to remove carbon dioxide directly from the atmosphere and store it underground, is expected to begin full startup at the end of 2026, with its capital cost estimate raised to $1.8 billion from about $1.3 billion, the report said. Two long-term CO2 supply agreements for projects in the Delaware Basin are expected to provide about 2 million metric tons a year of third-party carbon dioxide starting in 2029, UBS said. UBS maintained its neutral rating on Occidental stock and its $73 price target. Price: 57.04, Change: +1.28, Percent Change: +2.30