Fitch changes Occidental Petroleum view

Fitch Ratings said it affirmed Occidental Petroleum Corp.'s long-term issuer default rating and senior unsecured ratings at A and its short-term issuer default rating and commercial paper rating at F1.

The outlook was revised to stable from negative.

“The primary catalyst for stabilizing the outlook is the early completion of the company's breakeven plan and a materially improved FCF outlook,” the agency said in a news release.

“Under that plan, OXY expects to fund its capex and dividend with no upstream growth at $40 WTI, and with 5%-8% upstream growth at $50 WTI.

“A key plank of the plan was the additional cash flow from an 80,000 boepd increase in high margin Permian Resources production. In Q2, OXY achieved that target three quarters early, with average Q2 Resources production increasing to 201,000 boepd, and a Q2 exit rate of 213,000 boepd.”

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