Oxy's Strategic Debt Reduction and Portfolio High-Grading
Oxy has repaid approximately $7.5 billion of debt in 13 months, surpassing the initial target of $4.5 billion within 12 months of the CrownRock acquisition closure.
Nearly $4 billion in divestitures have been announced since January 2024, including $950 million in recent asset sales, with $370 million already closed.
The divestiture program, combined with warrant proceeds and strong free cash flow, has significantly strengthened Oxy's balance sheet and reduced interest expenses by about $410 million annually.
The company's focus on high-grading assets and selling non-core, low-opportunity assets aims to accelerate deleveraging and improve long-term shareholder value.
This strategic approach supports a more manageable debt profile and positions Oxy for sustainable growth and resilience across market cycles.
Ovintiv's Strategic Position as a Montney Consolidator
Ovintiv's lower D&C and operating costs position it as a potential long-term consolidator in the Montney basin.
The company has built one of the most valuable premium inventory positions in the industry, with nearly 15 years of premium inventory in the Permian, close to 20 years in the Montney, and over a decade in the Anadarko.
Management emphasizes their high bar for acquisitions, stating that any new deals must surpass their existing portfolio, which was acquired at under $1 million per premium location in Montney and around $2 million in Permian.
The company views its portfolio as a strategic advantage that is difficult to beat, with a focus on delivering superior returns and shareholder value.
Centuri's quarterly earnings improved due to reduced interest expense, and Southwest Gas Holdings used over $470 million in net proceeds from Centuri share sales to repay debt.
Deferred tax liabilities and assets related to Centuri deconsolidation resulted in a net $45 million impact excluded from adjusted net income.
Depreciation and amortization increased by $9.3 million reflecting a 7% increase in average gas plant in service.
Interest expense rose by $4.9 million primarily due to interest on the over-collected PGA balance, which flipped from an $82 million asset to a $349 million liability.
O&M expenses increased by $7 million year-over-year, mainly due to higher labor and benefit costs and contractor services, but year-to-date O&M expense growth remains below inflation at just over 2%.
Other income increased by $3.6 million, including a $4.5 million gain from COLI policy value increases and a $1.6 million one-time nonoperating gain from an asset sale.
Southwest Gas Holdings reported record net income for the first half of 2025 with modest increases in O&M expenses compared to the prior year.
Utility operating margin increased by $26.6 million in Q2 2025, driven by $24 million of combined rate relief and $2 million from customer growth.
Cash from operating activities was $77.2 million, capital expenditures were $30.3 million, resulting in free cash flow of $46.9 million.
In Q2 2025, Oceaneering reported net income of $54.4 million or $0.54 per share, with consolidated revenue increasing 4% year-over-year to $698 million.
Operating income rose 31% to $79.2 million and adjusted EBITDA grew 20% to $103 million, marking 8 straight quarters of meeting or exceeding adjusted EBITDA guidance.
Segment results included SSR operating income of $64.5 million (4% improvement), Manufactured Products operating income of $18.8 million (31% rise), OPG operating income of $21.7 million (significant improvement), IMDS improved operating income on flat revenue, and ADTech operating income increased 125% to $16.3 million.
The company repurchased approximately $10 million of common stock for the fourth consecutive quarter and ended with $434 million in cash and no borrowings on its revolving credit facility.
Capital expenditures were $10 million, elevated due to construction of a new manufacturing facility in Batam, Indonesia.
Cash flow from operations grew 61% sequentially to $15 million; free cash flow was $8 million.
Completion and Production Services segment revenues were $29 million with adjusted EBITDA of $8 million and a 28% margin, benefiting from facility and equipment sale gains.
Downhole Technologies segment revenues were $29 million with $1 million adjusted EBITDA, impacted by noncash lease and impairment charges.
Net income was $3 million or $0.05 per share, including $3 million of charges and credits; adjusted net income was $5 million or $0.09 per share.
No borrowings were outstanding on the revolving credit facility as of June 30, 2025.
Offshore/Manufactured Products segment revenues were $107 million with adjusted EBITDA of $21 million and a 20% margin, up from 19% in Q1.
Oil States generated revenues of $165 million and adjusted consolidated EBITDA of $21 million in Q2 2025.
The company repurchased $7 million of common stock and $15 million of convertible senior notes during the quarter.
Dafinchi