Mizuho lowered the firm’s price target on Occidental Petroleum to $72 from $76 and keeps a Buy rating on the shares after the company announced the acquisition of CrownRock Midland assets for a total purchase price of $12B. Besides the price paid, financing 86% of the transaction with debt ahead of a potentially weak macro outlook in 2024 “was a bold move,” the analyst tells investors in a research note. The firm sees the deal as modestly dilutive to its net asset value but 0.6% accretive to 2024 free cash flow to enterprise value.
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