Is Occidental's cost-cutting strategy working in 2024?

Occidental Petroleum's cost-cutting strategy has shown positive results in 2024, contributing to the company's resilience and financial performance despite challenging market conditions. 1. **Deleveraging Efforts**: Occidental has made significant progress in deleveraging, repaying $4.0 billion of debt and achieving nearly 90% of its short-term debt reduction target. This strategic move reduces the company's financial obligations and positions it for improved financial flexibility. 2. **Cost Reduction Measures**: The company has implemented various cost-saving measures, such as renegotiating supplier contracts to lower capital and operational expenses. These efforts have been successful in reducing costs and improving profitability. 3. **Efficient Capital Spending**: Occidental has adjusted its capital expenditure to focus on efficient spending, which has resulted in positive cash flow and improved profitability. The company's drilling programs, such as the two-string casing design and optimized bottom hole assemblies, have enhanced its operational efficiency and reduced costs. 4. **Portfolio Optimization**: Occidental has optimized its portfolio by divesting non-core assets and focusing on high-margin oil and gas production. This strategic consolidation has likely contributed to improved profitability and reduced costs. In conclusion, Occidental's cost-cutting strategy has been effective in 2024, as evidenced by the company's deleveraging progress, cost reductions, efficient capital spending, and portfolio optimization. These measures have likely enhanced the company's financial performance and positioned it for sustained growth in the current low-oil-price environment.