Occidental Petroleum (OXY) AI Stock Analysis

• Market Cap: $44.15B
• Dividend Yield: 2.1%
• Average Volume (3M): 10.25M
• Price to Earnings (P/E): 26.4
• Beta (1Y): 0.43
• Revenue Growth: -1.66%
• EPS Growth: -58.96%
• Country: US
• Employees: 13,323
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.39
• Shares Outstanding: 984,439,760
• 10 Day Avg. Volume: 15,018,006
• 30 Day Avg. Volume: 10,246,426
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.65
• Enterprise Value/Revenue: 2.65
• Enterprise Value/Gross Profit: 7.19
• Enterprise Value/Ebitda: 5.53
• 1Y Price Target: $49.89
• Price Target Upside: 11.24% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 20

• Rating: 72 Outperform
• Price Target: $49.00 ▲(9.25% Upside)

Occidental Petroleum's strong financial performance and positive earnings call sentiment are key strengths, supported by effective cost management and strategic initiatives in carbon capture. However, technical indicators suggest potential bearish momentum, and the high P/E ratio indicates possible overvaluation. The company's focus on debt reduction and sustainability positions it well for future growth, despite current market challenges.

Positive Factors

Debt Reduction

Significant debt reduction enhances financial stability and reduces interest expenses, improving long-term financial flexibility and resilience.

Carbon Capture Initiatives

Advancements in carbon capture align with sustainability trends, potentially opening new revenue streams and enhancing the company's ESG profile.

Operational Efficiency

Improved operational efficiency in well costs enhances profitability and competitiveness, supporting sustainable margin improvements.

Negative Factors

Revenue Decline

Declining revenue growth can indicate challenges in market expansion or product demand, potentially impacting long-term earnings potential.

OxyChem Segment Underperformance

Underperformance in the OxyChem segment suggests potential issues in pricing power or market demand, which could affect overall profitability.

Production Challenges

Production challenges can disrupt supply and revenue streams, potentially leading to missed targets and affecting investor confidence.

Occidental Petroleum Business Overview & Revenue Model

Company Description

Occidental Petroleum Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of oil and gas properties in the United States, the Middle East, Africa, and Latin America. It operates through three segments: Oil and Gas, Chemical, and Midstream and Marketing. The company's Oil and Gas segment explores for, develops, and produces oil and condensate, natural gas liquids (NGLs), and natural gas. Its Chemical segment manufactures and markets basic chemicals, including chlorine, caustic soda, chlorinated organics, potassium chemicals, ethylene dichloride, chlorinated isocyanurates, sodium silicates, and calcium chloride; vinyls comprising vinyl chloride monomer, polyvinyl chloride, and ethylene. The Midstream and Marketing segment gathers, processes, transports, stores, purchases, and markets oil, condensate, NGLs, natural gas, carbon dioxide, and power. This segment also trades around its assets consisting of transportation and storage capacity; and invests in entities. Occidental Petroleum Corporation was founded in 1920 and is headquartered in Houston, Texas.

How the Company Makes Money

Occidental Petroleum generates revenue primarily through the exploration, production, and sale of crude oil and natural gas. The company sells its products to refiners, marketers, and other industrial consumers, which constitutes a major revenue stream. Additionally, Occidental has a chemicals segment that produces and sells a variety of chemical products, contributing to its earnings. Key partnerships, such as joint ventures with other energy companies, further enhance its operational efficiency and market reach. The company also engages in midstream activities, including transportation and storage of oil and gas, which provide additional income. Factors such as global oil prices, production levels, and operational costs significantly influence its profitability.

Occidental Petroleum Financial Statement Overview

Summary

Occidental Petroleum maintains a robust financial position with strong profitability and cash flow metrics. Despite slight revenue contraction, the company shows effective cost management and solid returns on equity. The balance sheet is stable but could benefit from further debt optimization.

Income Statement

Occidental Petroleum demonstrates strong profitability with a gross profit margin of 36.9% and a net profit margin of 11.3% for TTM (Trailing-Twelve-Months). However, revenue growth is challenged with a decline of 2.5% year-over-year. EBIT and EBITDA margins are healthy, indicating good operational efficiency.

Balance Sheet

The company's debt-to-equity ratio stands at 0.75, reflecting moderate leverage. Return on Equity (ROE) is solid at 8.9%, indicating efficient use of equity capital. The equity ratio is at 40.9%, suggesting a balanced asset financing structure but with room for improvement in reducing liabilities.

Cash Flow

Free cash flow growth is stable at 0.9% annually, and the operating cash flow to net income ratio of 3.7 indicates strong cash generation capability relative to profits. The free cash flow to net income ratio of 1.4 further supports healthy cash conversion from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.55B	27.10B	28.33B	36.25B	25.96B	17.14B
Gross Profit	10.16B	9.65B	9.74B	17.05B	7.60B	441.00M
EBITDA	13.20B	12.72B	14.54B	22.16B	13.89B	-6.14B
Net Income	3.10B	3.04B	4.67B	13.22B	2.31B	-14.83B
Balance Sheet
Total Assets	84.97B	85.44B	74.01B	72.61B	75.04B	80.06B
Cash, Cash Equivalents and Short-Term Investments	2.61B	2.13B	1.43B	984.00M	2.76B	2.01B
Total Debt	25.99B	27.10B	20.91B	20.77B	30.39B	37.30B
Total Liabilities	49.86B	50.97B	43.66B	42.52B	54.71B	61.49B
Stockholders Equity	34.71B	34.16B	30.25B	30.09B	20.33B	18.57B
Cash Flow
Free Cash Flow	4.46B	4.42B	6.06B	12.46B	7.56B	1.42B
Operating Cash Flow	11.58B	11.44B	12.31B	16.81B	10.43B	3.96B
Investing Cash Flow	-13.51B	-14.59B	-6.98B	-4.87B	-1.25B	-819.00M
Financing Cash Flow	3.24B	3.84B	-4.89B	-13.71B	-8.57B	-4.52B

Occidental Petroleum Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 44.85
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OXY, the sentiment is Negative. The current price of 44.85 is below the 20-day moving average (MA) of 46.38, below the 50-day MA of 45.41, and below the 200-day MA of 44.92, indicating a bearish trend. The MACD of 0.16 indicates Positive momentum. The RSI at 43.70 is Neutral, neither overbought nor oversold. The STOCH value of 27.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OXY.

Occidental Petroleum Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FANG	77 Outperform	$41.45B	10.18	13.55%	2.64%	51.78%	-27.29%
EOG	76 Outperform	$60.28B	10.73	19.63%	3.46%	-5.42%	-20.52%
WDS	74 Outperform	$28.85B	9.62	8.33%	6.95%	15.31%	58.83%
DVN	74 Outperform	$21.79B	7.69	20.60%	2.72%	10.98%	-19.25%
OXY	72 Outperform	$44.15B	26.35	6.98%	2.10%	-1.66%	-58.96%
CTRA	70 Neutral	$17.67B	11.09	11.42%	3.73%	16.56%	20.21%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Occidental Petroleum Corporate Events

Occidental Petroleum Completes Acquisition of CrownRock

On August 1, 2024, Occidental Petroleum Corporation completed the acquisition of CrownRock, L.P. for approximately $12.4 billion. This strategic move, involving cash, stock, and debt assumption, aims to enhance Occidental’s operational capabilities and market presence. The pro forma financial statements, prepared to illustrate the impact of the acquisition, show adjustments to Occidental’s historical financial data, reflecting the expected ongoing influence on the company’s results. However, these statements do not account for potential cost savings or synergies from the integration.