Based on my analysis, I believe in the long-term potential for Occidental Petroleum (NYSE: OXY ). Despite near-term headwinds, OXY's initiatives in margin enhancement can provide significant value to shareholders. Moreover, as the company continues to strengthen its balance sheet, there isWith over 7 years of experience in the buy-side, my investment philosophy is rooted in both fundamental bottom-up analysis and quantitative modelling. My forte lies in identifying perception gaps to capitalize on over-pess ...

Every once in a while, the markets align themselves to offer investors a perfect way to get into a specific sector, with every tailwind behind it coming from other asset classes. Today, there are tailwinds brewing in the spreads between value stocks and growth stocks, which have fallen to a multi-decade low to show investors a potential shift in the market for the coming months. When investors graph out the difference between prices in the iShares S&P 500 Value ETF NYSEARCA: IVE and its distant opposite the ...

The energy sector has been plagued by a difficult few years, with volatile oil prices, extended geopolitical tensions, and a complex dynamic as customers and governments slowly pivot towards renewable forms of generation. Debt levels have always been high inGordon is a freelance investment writer from Glasgow, Scotland. With a Masters Degree in Civil Engineering, he also works in Asset Management, and runs a financial education company called Oak Investing with a wide following across 40 countries. With a p ...

I last covered Occidental Petroleum Corporation (NYSE: OXY ) stock on 10-30-2024. That article was titled "Exxon Mobil Is Both Cheaper And Better Than Occidental Petroleum" as you can see from As you can tell, our core style is to provide actionable and unambiguous ideas from our independent research. If your share this investment style, check out Envision Early Retirement. It provides at least 1x in-depth articles per week on such ideas.We have helped our members not only to beat S&P 500 but also avoid hea ...

Core Viewpoint - Warren Buffett's investment strategy focuses on long-term value investing, which has led to consistent outperformance of the market, although not all investments have been successful [1][2]. Company Analysis: Occidental Petroleum (OXY) - Occidental Petroleum's stock is currently trading at $46.41, reflecting a year-to-date loss of 22.71%, reaching levels not seen since March 2022 [6]. - Buffett first invested in OXY in 2019 and has since increased his stake to 255,281,524 shares, representing approximately 27% of the company [7]. - The original investment of $10 billion was made in preferred stock with an 8% annual yield, providing a steady income stream regardless of stock performance [8]. - Occidental Petroleum has beaten analyst expectations for earnings per share for three consecutive quarters, although revenues have lagged behind forecasts [9][10]. - The company has improved its debt-to-equity ratio from 2.34 five years ago to approximately 1.47, indicating a reduction in debt levels [10]. - OXY stock has an attractive trailing price-to-earnings (P/E) ratio of 13.05 and a forward P/E ratio of 15.07, suggesting it is relatively affordable [10]. - The company benefits from an economic moat due to cost advantages in the Permian basin and vertical integration across upstream, midstream, and downstream operations [11]. - Energy stocks, including Occidental Petroleum, are inherently volatile, influenced by geopolitical instabilities, but may present opportunities for long-term investors [12].

The oil industry is currently undergoing a massive consolidation wave. Sector leader ExxonMobil kicked things off by acquiring Pioneer Natural Resources in a more than $60 billion deal. Chevron followed it by agreeing to buy Hess for $60 billion. Several other oil companies also struck deals to acquire smaller rivals, including Occidental Petroleum (OXY 1.88%), which bought CrownRock in a $12 billion deal. One of the critical differences between Occidental's deal and the acquisitions of its larger peers is ...

Occidental Petroleum (OXY 1.65%) expected its acquisition of CrownRock to move the needle for investors. So far, so good for the oil giant. It delivered robust free cash flow during the third quarter, which allowed it to continue strengthening its balance sheet. Here's a closer look at the quarter and what's ahead for the oil company.Drilling down into Occidental Petroleum's third-quarter resultsOccidental Petroleum produced $977 million, or $1 per share, of adjusted net income during the third quarter. Tha ...

Financial Data and Key Metrics Changes - In Q3 2024, the company generated an adjusted profit of $1 per diluted share and a reported profit of $0.98 per diluted share, with a significant free cash flow of $1.5 billion before working capital [34][35] - The company finished the quarter with $1.8 billion of unrestricted cash, reflecting strong operational performance despite adverse weather conditions and commodity price volatility [35][36] - Domestic lease operating expenses were reported at $8.68 per barrel, the lowest since Q1 2022, indicating improved operational efficiency [37] Business Line Data and Key Metrics Changes - The Oil & Gas segment exceeded production guidance, achieving the highest quarterly U.S. production in the company's history, driven by strong new well performance and higher uptime in the Permian Basin [7][8] - The Chemicals and Midstream segments also outperformed, with the Midstream segment generating positive earnings approximately $145 million above the midpoint of guidance [15][38] - The company raised its full-year production guidance for the Permian, anticipating an additional 12,000 BOE per day in Q4, with 9,000 BOE from CrownRock assets [40][41] Market Data and Key Metrics Changes - The Delaware Basin continued to perform at an industry-leading level, with a notable well producing 1.2 million barrels of oil in the first 90 days [9] - The company reported a drop in the gas-oil ratio in the Permian, attributed to the growth in unconventional production and the integration of CrownRock assets [102][105] Company Strategy and Development Direction - The company is focused on maintaining activity levels in the CrownRock area while slightly lowering capital in other oil and gas areas, preparing for potential price declines [57][60] - The integration of CrownRock assets is expected to unlock operational efficiencies and enhance margins, with a commitment to leveraging shared infrastructure for cost savings [19][21][70] - The company is advancing its low-carbon initiatives, including the construction of the STRATOS direct air capture facility, which is on track for completion in mid-2025 [23][25] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the volatility in oil prices and the potential for a softer commodity backdrop in 2025, emphasizing a conservative approach to capital allocation [54][56] - The leadership team is optimistic about the long-term potential of the Permian Basin, expecting continued efficiency improvements and production growth from secondary benches [81][82] - The company remains committed to debt reduction, having repaid $4 billion in Q3, nearly 90% of its near-term commitment [32][33] Other Important Information - The company is targeting a capital budget of approximately $450 million for low-carbon ventures in 2025, a decrease from 2024, while the chemicals capital budget is expected to increase to $900 million [44][45] - The company has identified nearly $10 million in expected savings from water integration across assets, enhancing operational efficiency [20] Q&A Session Summary Question: Concerns about commodity outlook and capital implications - Management reviews macroeconomic factors weekly and acknowledges risks to prices in 2025, planning to maintain activity levels in CrownRock while adjusting capital in other areas as needed [54][57] Question: Deleveraging capacity and options - Management highlighted various opportunities for deleveraging, including a strong portfolio in the Permian and ongoing divestitures [62][63] Question: Oil mix in the Permian and future drilling programs - Management indicated that the oil mix may fluctuate due to the integration of CrownRock and the development of secondary benches, with a focus on maintaining production efficiency [72][75] Question: Goals for debt reduction and balance sheet outlook - Management expressed confidence in continuing debt reduction efforts regardless of commodity prices, targeting further progress in 2025 [78] Question: Direct air capture project milestones and economics - The DAC project is progressing well, with significant completion milestones expected by mid-2025, and management remains optimistic about its long-term commercial viability [84][87]

Occidental Petroleum Corporation (OXY) reported third-quarter 2024 earnings of $1 per share, which surpassed the Zacks Consensus Estimate of 80 cents by 25%. In the year-ago quarter, the company recorded earnings of $1.18 per share. GAAP earnings were 98 cents per share compared with $1.20 in the year-ago quarter.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Total Revenues of OXYTotal revenues was $7.15 billion, which lagged the Zacks Consensus Estimate of $7.40 billion by 3.4%. T ...

Group 1 - Occidental Petroleum (NYSE: OXY) reported third quarter results that exceeded estimates, although there were several offsetting items unrelated to operational performance during the quarter [2] - The oil and gas industry is characterized as a boom-bust, cyclical sector, requiring patience and experience for successful investment [2] Group 2 - The analysis of oil and gas companies includes a comprehensive breakdown of balance sheets, competitive positions, and development prospects to identify undervalued opportunities [1]