As previously reported, Wells Fargo downgraded Occidental Petroleum (OXY) to Market Perform from Outperform as Anadarko (APC) "(in)digestion begins." The firm notes that the merger delivers modest and more manageable production growth, declining capital intensity with time and likely a lesser corporate annual decline rate, while EBITDA and cashflow accretion should occur along with an improved free cash flow yield. However, "significant EPS dilution occurs," leverage metrics increase substantially, returns on equity and capital employed are reduced and the dividend payout to common equity holders declines as a percentage of EBITDA, it adds. Wells Fargo also lowered its price target on Occidental's shares to $56 from $75.