Occidental Petroleum (OXY)
NYSE:OXY
Top Page
Occidental Petroleum
(NYSE:OXY)
Select Model
Select Model
Rating:73Outperform
Price Target:
$70.00
â–²(11.16% Upside)
Action:ReiteratedDate:03/10/26
The score is driven primarily by solid, improving financial performance (profitability, cash generation, and better leverage) and a favorable earnings outlook centered on structural cost/interest savings, disciplined capex, and continued deleveraging. Technicals support the uptrend, but momentum is somewhat overextended, and valuation is only moderately attractive with a modest dividend yield.
Positive Factors
Strong free cash flow generation
Consistent, multi‑billion free cash flow provides durable internal funding for capex, debt paydown, dividends, and opportunistic buybacks. This level of cash generation reduces reliance on external financing, supports continued deleveraging, and underpins long‑term capital allocation flexibility across cycles.
Negative Factors
Revenue volatility and recent declines
Occidental’s top‑line remains sensitive to commodity price cycles and experienced multi‑year revenue deterioration, which can erode margin sustainability and free cash flow during down cycles. Persistent revenue swings complicate multiyear planning for capex and deleveraging targets.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Consistent, multi‑billion free cash flow provides durable internal funding for capex, debt paydown, dividends, and opportunistic buybacks. This level of cash generation reduces reliance on external financing, supports continued deleveraging, and underpins long‑term capital allocation flexibility across cycles.
Read all positive factors
Occidental Petroleum (OXY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$62.11B
Dividend Yield2.39%
Average Volume (3M)20.73M
Price to Earnings (P/E)16.9
Beta (1Y)0.32
Revenue Growth-2.48%
EPS Growth-65.26%
CountryUS
Employees10,412
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.31
Shares Outstanding986,266,660
10 Day Avg. Volume22,673,503
30 Day Avg. Volume20,728,515
Financial Highlights & Ratios
PEG Ratio-0.49
Price to Book (P/B)1.11
Price to Sales (P/S)1.86
P/FCF Ratio9.77
Enterprise Value/Market Cap1.35
Enterprise Value/Revenue3.38
Enterprise Value/Gross Profit10.55
Enterprise Value/Ebitda6.75
Forecast
1Y Price Target
$59.37Price Target Upside-5.72% Downside
Rating ConsensusHold
Number of Analyst Covering19
EPS Forecast (FY)3.3
Revenue Forecast (FY)$23.34B
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 segmen...
How the Company Makes Money
Occidental primarily makes money by producing and selling oil, natural gas, and natural gas liquids (NGLs). Revenue in this upstream business is largely driven by production volumes and realized commodity prices, so earnings tend to rise and fall ...
Occidental Petroleum Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Provides a breakdown of operating income across different business segments, revealing which areas are most profitable and where the company might focus its strategic efforts.
Provides a breakdown of operating income across different business segments, revealing which areas are most profitable and where the company might focus its strategic efforts.
Data provided by:
The Fly
The FlyOccidental Petroleum Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational execution, significant cost and capital efficiency gains, record production, robust free cash flow generation, and meaningful deleveraging progress—backed by clear targets for additional savings, lower sustaining capital, and an 8% dividend increase. Near‑term challenges include lower realized oil prices, a GAAP Q4 loss driven by transaction charges, remaining leverage and planned Q1 working capital/turnaround impacts, plus execution and timing risk for STRATOS and midstream normalization. On balance, the positives — outsized operational results, structural cost reductions, reserve/resource strength, and disciplined capital priorities — materially outweigh the near‑term and execution risks.Positive Updates
Strong Free Cash Flow and Cash Flow Growth
Generated $4.3 billion in free cash flow before working capital in 2025; on a normalized basis excluding OxyChem, cash flow from operations increased ~27% year‑over‑year.
Negative Updates
Lower Realized Oil Prices Impact
Realized oil prices were ~14% lower in 2025 versus 2024, a headwind to revenue despite strong operational performance.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Free Cash Flow and Cash Flow Growth
Generated $4.3 billion in free cash flow before working capital in 2025; on a normalized basis excluding OxyChem, cash flow from operations increased ~27% year‑over‑year.
Read all positive updates
Company Guidance
Occidental guided 2026 capital at $5.5–$5.9 billion (midpoint ~8% below 2025 excl. OxyChem), with sustaining capital roughly $4.1 billion at $40/bbl and ~70% of oil & gas spend focused on U.S. onshore; they expect average production of ~1.45 million BOE/d (≈1% growth) despite the lower spend, with Q1 volumes down seasonally and from winter impacts and a recovery in Q2. Management forecasted $500 million of oil & gas savings in 2026 (≈$300M capex, $200M opex/transport), $400 million of midstream savings, ~ $365 million of interest savings, and overall free‑cash‑flow improvement of >$1.2 billion; they plan to reduce U.S. onshore capex by ~$400M, raise mid‑cycle investment by ~$200M (GOA waterflood, Permian EOR, international), cut exploration by ~$100M, lower LCV spend as STRATOS ramps (Ph1/Ph2 commissioning in Q2) and pursue opportunistic buybacks while targeting further net debt reductions (principal debt ~$15B today, $700M tender to ~$14.3B) and an 8% higher quarterly dividend.Occidental Petroleum Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 21.59B | 27.10B | 28.33B | 36.25B | 25.96B |
| Gross Profit | 7.29B | 9.65B | 9.74B | 17.05B | 7.60B |
| EBITDA | 11.36B | 12.72B | 14.54B | 22.16B | 13.89B |
| Net Income | 2.37B | 3.04B | 4.67B | 13.22B | 2.31B |
Balance Sheet | |||||
| Total Assets | 86.78B | 85.44B | 74.01B | 72.61B | 75.04B |
| Cash, Cash Equivalents and Short-Term Investments | 1.99B | 2.13B | 1.43B | 984.00M | 2.76B |
| Total Debt | 23.96B | 27.10B | 20.91B | 20.77B | 30.39B |
| Total Liabilities | 50.19B | 50.97B | 43.66B | 42.52B | 54.71B |
| Stockholders Equity | 36.03B | 34.16B | 30.25B | 30.09B | 20.33B |
Cash Flow | |||||
| Free Cash Flow | 4.11B | 4.42B | 6.06B | 12.46B | 7.56B |
| Operating Cash Flow | 10.53B | 11.44B | 12.31B | 16.81B | 10.43B |
| Investing Cash Flow | -5.80B | -14.59B | -6.98B | -4.87B | -1.25B |
| Financing Cash Flow | -4.84B | 3.84B | -4.89B | -13.71B | -8.57B |
Occidental Petroleum Technical Analysis
Positive
62.97
Price Trends
52.63
Positive
46.98
Positive
45.33
Positive
Market Momentum
3.42
Positive
65.07
Neutral
56.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OXY, the sentiment is Positive. The current price of 62.97 is above the 20-day moving average (MA) of 59.84, above the 50-day MA of 52.63, and above the 200-day MA of 45.33, indicating a bullish trend. The MACD of 3.42 indicates Positive momentum. The RSI at 65.07 is Neutral, neither overbought nor oversold. The STOCH value of 56.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OXY.
Occidental Petroleum Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $54.54B | 26.12 | 4.34% | 2.70% | 60.29% | -17.62% | |
79 Outperform | $76.53B | 11.37 | 16.76% | 3.79% | -5.15% | -19.06% | |
77 Outperform | $26.24B | 11.67 | 11.77% | 3.39% | 26.13% | 31.42% | |
75 Outperform | $30.68B | 10.12 | 17.47% | 2.64% | 11.14% | -21.32% | |
73 Outperform | $62.11B | 16.93 | 6.43% | 2.39% | -2.48% | -65.26% | |
73 Outperform | $45.76B | 10.87 | 7.67% | 6.85% | 15.31% | 58.83% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
OXY
Occidental Petroleum
62.97
25.04
66.03%
CTRA
Coterra Energy
34.56
10.35
42.75%
DVN
Devon Energy
49.49
21.60
77.47%
EOG
EOG Resources
142.64
37.51
35.68%
WDS
Woodside Energy Group
24.23
13.32
122.01%
FANG
Diamondback
193.88
72.66
59.94%
Occidental Petroleum Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Occidental Petroleum Expands Debt Tender Offer and Amendments
Positive
Mar 9, 2026
On March 5, 2026, Occidental announced early results of cash tender offers for multiple series of senior notes and debentures, alongside related consent solicitations to amend certain indenture terms. The company increased the maximum aggregate pr...
Business Operations and StrategyPrivate Placements and Financing
Occidental Petroleum Launches Debt Tender Offers, Seeks Consents
Positive
Feb 19, 2026
On February 19, 2026, Occidental Petroleum launched cash tender offers to repurchase up to $700 million in aggregate principal amount of several series of its outstanding senior notes and debentures, including a $58 million sub-cap for its zero co...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.