Leverage ConcernsShares trade well below fair value, tied in part to balance sheet concerns, and there are more pathways to de-lever than appreciated.
Macroeconomic RisksOXY is exposed to significant macroeconomic risks, as earnings are closely tied to price volatility of oil, NGLs, natural gas, and other chemical products.
Productivity ChallengesOXY saw another year of decline in the Delaware where they still produce 70% of oil volumes, with productivity per foot declining compared to peers that saw productivity growth.