Roth Capital has reaffirmed its Neutral rating for Occidental Petroleum (OXY, Financial) with a price target set at $53. This follows Occidental’s first-quarter performance, where both oil and natural gas price realizations surpassed the firm’s expectations. Despite this positive performance, Roth predicts only a slight favorable market response for the company in relation to its industry peers.
The firm’s outlook considers Occidental’s more highly leveraged financial position in comparison to its competitors, along with a slower anticipated long-term production growth rate. Additionally, Occidental’s investments in direct air capture (DAC) carbon-capture projects and its strategy to divest approximately $5 billion in assets were also highlighted as significant factors influencing the company’s financial strategy.