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Core Viewpoint - Occidental Petroleum has experienced a decline in stock price due to falling oil prices, but it has several catalysts unrelated to oil that could enhance shareholder value in the future [1]. Group 1: Debt Management - Occidental Petroleum completed a $12 billion acquisition of CrownRock, which is expected to increase free cash flow by $1 billion in the first year based on WTI averaging $70 per barrel [2]. - The company assumed $1.2 billion of CrownRock's existing debt and issued $9.1 billion of new debt for the acquisition, raising concerns about the impact of oil price volatility on its financials [3]. - Occidental has rapidly repaid debt, achieving its target of reducing debt by at least $4.5 billion within 12 months of the acquisition seven months ahead of schedule [4]. - The company aims to continue reducing debt by retaining free cash flow and selling noncore assets, which will lower interest expenses and enhance future cash flow [5]. Group 2: Expansion of Non-Oil Businesses - Occidental is investing significantly in its oil and gas operations, with $5.3 billion spent on capital projects last year and plans to invest an additional $5.8 billion to $6 billion this year [6]. - The company is also focusing on expanding its chemicals business, OxyChem, with over $1.5 billion allocated for various projects, including the modernization of the Battleground plant, expected to generate $325 million in annualized EBITDA by 2026 [7]. - Occidental is developing carbon capture and storage (CCS) projects, including the STRATOS direct air capture project in Texas, which aims to capture 250,000 tons of CO2 annually, with operations expected to start in 2025 [8]. - The company sees CCS as a potential $3 trillion to $5 trillion global industry, believing it could generate earnings and cash flow comparable to its current oil and gas production [9]. Group 3: Long-Term Value Catalysts - While oil prices will influence Occidental's stock price in the short term, the company has several long-term value catalysts unrelated to oil prices, including debt repayment, expansion of OxyChem, and development of a lower-carbon energy business [11].

Occidental Petroleum TodayOXYOccidental Petroleum$49.05 +1.13 (+2.36%) 52-Week Range$44.70▼$71.19Dividend Yield1.96%P/E Ratio20.10Price Target$60.45Add to WatchlistOccidental Petroleum Co. NYSE: OXY is primarily recognized in the energy sector as a leading international oil and gas producer. It's notably been a growing position for the Oracle of Omaha as Berkshire Hathaway Co. NYSE: BRK.B raised its stake to 28% of the company in February 2025. What is not so well known is Occidental Petroleum’s ambitions ...

Occidental Petroleum’s (OXY) share price has dropped 25.2% in the trailing 12 months, wider compared with its industry’s decline of 15.7%. In the same period, the Zacks Oil & Energy sector has declined 0.9%.OXY’s exposure to fluctuating commodity prices remains a concern. As of Dec. 31, 2024, there were no active commodity hedges in place, so if the commodity prices drop substantially, it can adversely impact Occidental’s performance.Price Performance (One Year)Image Source: Zacks Investment ResearchShould ...

Core Viewpoint - Despite Warren Buffett's confidence in Occidental Petroleum, the company's stock has been struggling, leading to questions about its future performance and investment potential [1][3]. Group 1: Stock Performance - Occidental Petroleum's stock price has declined, closing at $47.94 on March 21, 2025, which is down more than 3% year-to-date and approximately 21% below Buffett's initial entry price of $60 [2]. - The company has failed to deliver expected returns compared to sector peers, raising concerns about whether Buffett's investment is a misstep or if patience is required [3]. Group 2: Financial Fundamentals - Occidental achieved a $4.5 billion debt repayment target seven months ahead of schedule in Q4 2024, following a $12 billion acquisition of CrownRock in 2023 [4]. - The company reported $3.1 billion in cash flow and $1.4 billion in free cash flow for the same quarter, alongside divesting upstream assets for $1.2 billion, which strengthened its balance sheet [6]. - Total proved reserves increased to 4.6 billion barrels of oil equivalent (BOE) from 4 billion the previous year, with a reserves replacement rate of 230% in 2024 [7]. Group 3: Dividend and Investment Appeal - Occidental announced a 9% increase in its quarterly dividend to $0.24 per share, payable on April 15, 2025, appealing to income-focused investors [8]. - The company's investment in direct-air-capture technology enhances its position in carbon reduction, exemplified by a deal with Microsoft for removal credits [9]. Group 4: Analyst Perspectives - Raymond James downgraded Occidental from "Strong Buy" to "Outperform" and lowered its price target to $64, citing weaker oil prices and recent stock performance [11]. - Wall Street analysts project a 21% upside for OXY stock over the next 12 months, with an average price target of $58 and a 'Hold' rating [11]. Group 5: Future Outlook - Despite short-term struggles, the fundamentals suggest a solid chance for Occidental's stock to rally, with Buffett's continued confidence indicating potential for a rebound in 2025 [12].

Core Viewpoint - Occidental Petroleum (OXY) shares have decreased by approximately 5.9% since the last earnings report, although this performance has outpaced the S&P 500 [1] Estimates Movement - Consensus estimates for Occidental have trended downward over the past month, with a shift of -23.19% [2] VGM Scores - Occidental currently holds an average Growth Score of C, a Momentum Score of F, and a Value Score of B, placing it in the top 40% for the value investment strategy. The aggregate VGM Score is C [3] Outlook - The overall trend of estimates for Occidental indicates a downward shift, with a Zacks Rank of 3 (Hold), suggesting an expectation of in-line returns in the coming months [4] Industry Performance - Occidental is part of the Zacks Oil and Gas - Integrated - United States industry. ConocoPhillips (COP), a peer in the same industry, has seen a gain of 1.8% over the past month. ConocoPhillips reported revenues of $14.74 billion for the last quarter, reflecting a year-over-year decline of -3.7% [5] - ConocoPhillips is expected to report earnings of $2.04 per share for the current quarter, indicating a year-over-year increase of +0.5%. The Zacks Consensus Estimate for ConocoPhillips has changed by -1% over the last 30 days, also holding a Zacks Rank of 3 (Hold) and a VGM Score of C [6]

President Trump campaigned on a “Drill, baby, drill” policy, promising to bring down fuel and energy prices. This policy has been coming to fruition in the oil sector. While the oil and energy sector is feeling the pain, investors may be able to seize some buying opportunities. Leading U.S. oil and gas producer Occidental Petroleum Co. NYSE: OXY stock has been teetering near 52-week lows as crude oil prices have fallen by more than 11% since the start of 2025.Get Occidental Petroleum alerts:Here are four re ...

The still-young year of 2025 hasn't been all that kind to oil stocks, many of which are trading down since New Year's Day. One of these laggards has been sector mainstay Occidental Petroleum (OXY -1.18%), despite the company's convincing bottom-line beat in its most recent earnings report.Recently, one analyst tracking the stock downgraded his recommendation on Occidental and cut his price target. Yet his previous take was so bullish, he still feels the shares have significant upside.Still a bull, despite t ...

Group 1: Market Trends and Predictions - The energy sector is expected to see significant growth, with Occidental Petroleum forecasted to have a 12-month stock price of $60.86, representing a 28.85% upside based on 21 analyst ratings [4] - The manufacturing PMI index indicates a two-month expansion in the U.S. manufacturing sector, suggesting potential momentum for oil demand [5] - Both the U.S. and China are positioned to increase oil demand, which could negatively impact put option buyers unless they hedge their positions [6] Group 2: Institutional Investments - Institutional investors, such as the Vanguard Group, have increased their holdings in Transocean Ltd., now owning 9.0% of the company, valued at approximately $295.5 million [8] - Bank of America has boosted its metals & mining ETF holdings by 24.4%, now holding a stake worth $139.5 million, or 7.2% ownership in the fund [12] Group 3: Market Sentiment and Analyst Ratings - There is a prevailing bullish sentiment among Wall Street analysts regarding the basic materials sector, which may lead to increased confidence if put option traders are forced to close their positions [13] - Barrick Gold Corp. has approved a significant stock buyback, reflecting management's confidence in the company's sales and earnings amidst a strong gold market [10]

Core Viewpoint - Occidental Petroleum's stock has reached a 52-week low, raising investor concerns, but the long-term outlook remains positive due to solid cash flow and strategic repositioning efforts [1][2]. Financial Performance - The company has a P/E ratio of 18.62 and a dividend yield of 2.11%, with a price target set at $61.50 [1]. - By the end of 2024, Occidental aims to achieve a $4.5 billion debt reduction target while increasing cash balances and total assets, with shareholder equity improving by over 13% in 2024 and expected growth in 2025 [8]. Strategic Initiatives - Occidental is undergoing a significant repositioning towards sustainability, including a shift to greener energy businesses and enhancing capital returns [2]. - The STRATOS direct air capture (DAC) plant, the largest of its kind, is expected to begin operations by Q3 2025, contributing to revenue growth in 2026 as it ramps up capacity [4]. - The Battleground chemical plant expansion is set to enhance the higher-margin mid-stream chemical business, with operations expected to commence in mid-2026 [5]. Market Sentiment - Institutional interest in Occidental is solid and growing, with notable purchases by Berkshire Hathaway, which owns approximately 30% of the stock and has been approved to acquire up to 50% [2][9]. - The stock is currently rated as a "Hold" by analysts, with a projected earnings growth of 7.54% [7][8]. Investment Outlook - The stock price has retreated to a critical support level between $43 and $48, which aligns with Warren Buffett's initial entry points, indicating a potential market reversal driven by improving financial conditions [10]. - Despite the current market pressures, the expectation is for the stock to consolidate around its current levels rather than decline further [11].