tiprankstipranks
Trending News
More News >
Occidental Petroleum (OXY)
NYSE:OXY
Advertisement

Occidental Petroleum (OXY) AI Stock Analysis

Compare
12,013 Followers

Top Page

OXY

Occidental Petroleum

(NYSE:OXY)

Rating:71Outperform
Price Target:
$49.00
â–²(3.14% Upside)
Occidental Petroleum's strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. While technical indicators and valuation suggest caution, the company's strategic initiatives in sustainability and debt reduction provide a solid foundation for future growth.
Positive Factors
Debt Reduction
Deleveraging efforts have reduced debt significantly, with asset sales contributing to further debt reduction.
Financial Performance
Occidental reported a stronger than expected result driven by efficiencies in Midstream crude export timing and natural gas marketing.
Growth Potential
CrownRock acquisition is a key growth driver.
Negative Factors
Macroeconomic Risks
OXY is exposed to significant macroeconomic risks, as earnings are closely tied to price volatility of oil, NGLs, natural gas and other chemical products.
Production Challenges
Production guidance remained flat despite outages, indicating challenges in maintaining output levels.
Shareholder Returns
A cautious stance on oil price, with meaningful shareholder returns expected to be delayed until 2027/2028, leads to a Neutral rating.

Occidental Petroleum (OXY) vs. SPDR S&P 500 ETF (SPY)

Occidental Petroleum Business Overview & Revenue Model

Company DescriptionOccidental 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 MoneyOccidental 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 Key Performance Indicators (KPIs)

Any
Any
Production by Geography
Production by Geography
Shows where Occidental Petroleum is extracting oil and gas, highlighting regional strengths and potential exposure to geopolitical or environmental risks.
Chart InsightsOccidental Petroleum's U.S. production has rebounded strongly since 2023, driven by improved drilling efficiency and cost reductions in the Permian Basin, while international production remains stable. The recent earnings call highlights strategic moves like the Oman Block 53 extension, potentially adding significant resources. Despite market volatility and challenges in the chemical segment, Occidental's focus on operational efficiency and cost management positions it well for future growth, with reduced capital and operational expenses enhancing resilience.
Data provided by:Main Street Data

Occidental Petroleum Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong operating cash flow, significant debt reduction, and advancements in their carbon capture initiatives. However, there were challenges with lower oil prices, underperformance in the OxyChem segment, and production issues in the Gulf of America.
Q2-2025 Updates
Positive Updates
Strong Operating Cash Flow
Occidental delivered $2.6 billion of operating cash flow in the second quarter, exceeding last year's performance despite lower oil prices.
Significant Debt Reduction
Repayment of $7.5 billion of debt, achieving a 70% reduction of the debt raised for the CrownRock acquisition, well ahead of target.
STRATOS Milestone
STRATOS achieved a significant milestone with Trains 1 & 2 moving to operations, on track to start capturing CO2 this year.
Cost Management
Operating cost reductions offset costs associated with increased production, maintaining absolute operating costs despite increased production.
Midstream & Marketing Segment Outperformance
Generated positive earnings on an adjusted basis, outperforming guidance due to improved crude marketing margins and gas marketing optimization.
Additional Commercial Agreements
Signed agreements for carbon removal sales with JPMorgan and Palo Alto Networks, with majority volumes through 2030 now contracted.
Negative Updates
Lower Realized Oil Prices
Realized oil prices were lower, impacting profitability and contributing to market volatility.
OxyChem Segment Underperformance
OxyChem pre-tax income came in below guidance due to weaker-than-anticipated pricing for caustic and PVC.
Production Challenges in the Gulf of America
Lower-than-expected production due to third-party constraints and curtailments, impacting the overall production guidance.
Increased Tax Rate
Effective tax rate increased due to a shift in the jurisdictional mix of income driven by lower anticipated full-year oil prices.
Company Guidance
In Occidental's Second Quarter 2025 Earnings Conference Call, the company provided guidance indicating strong operational performance with several key metrics. The company reported $2.6 billion in operating cash flow for the quarter, which contributed to more operating cash flow in the first half of 2025 than in the same period of 2024, despite a $11 per barrel decrease in WTI oil prices. Occidental achieved a significant milestone with its STRATOS project, set to start capturing CO2 within the year, which aligns with the growing interest in Direct Air Capture. The oil and gas production exceeded expectations at 1.4 million BOE per day, with particular strength in the Rockies and Oman. The company also highlighted a 13% reduction in Permian unconventional well costs compared to 2024, driven by operational efficiencies, and announced $950 million in additional divestitures, bringing total announced divestitures to nearly $4 billion since January 2024. This, along with cash flow, enabled Occidental to repay $7.5 billion of debt since the CrownRock acquisition. For the third quarter, the company expects total production to range between 1.42 million and 1.46 million BOE per day. The guidance also included a revised OxyChem full-year guidance range and an update on the Midstream & Marketing segment, which outperformed expectations.

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
78
Positive
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
72
Positive
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
81
Very Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue27.55B27.10B28.33B36.25B25.96B17.14B
Gross Profit10.16B9.65B9.74B17.05B7.60B441.00M
EBITDA13.20B12.72B14.54B22.16B13.89B-6.14B
Net Income3.10B3.04B4.67B13.22B2.31B-14.83B
Balance Sheet
Total Assets84.97B85.44B74.01B72.61B75.04B80.06B
Cash, Cash Equivalents and Short-Term Investments2.61B2.13B1.43B984.00M2.76B2.01B
Total Debt25.99B27.10B20.91B20.77B30.39B37.30B
Total Liabilities49.86B50.97B43.66B42.52B54.71B61.49B
Stockholders Equity34.71B34.16B30.25B30.09B20.33B18.57B
Cash Flow
Free Cash Flow4.46B4.42B6.06B12.46B7.56B1.42B
Operating Cash Flow11.58B11.44B12.31B16.81B10.43B3.96B
Investing Cash Flow-13.51B-14.59B-6.98B-4.87B-1.25B-819.00M
Financing Cash Flow3.24B3.84B-4.89B-13.71B-8.57B-4.52B

Occidental Petroleum Technical Analysis

Technical Analysis Sentiment
Positive
Last Price47.51
Price Trends
50DMA
44.27
Positive
100DMA
42.65
Positive
200DMA
45.47
Positive
Market Momentum
MACD
0.71
Negative
RSI
68.18
Neutral
STOCH
91.64
Negative
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 47.51 is above the 20-day moving average (MA) of 44.57, above the 50-day MA of 44.27, and above the 200-day MA of 45.47, indicating a bullish trend. The MACD of 0.71 indicates Negative momentum. The RSI at 68.18 is Neutral, neither overbought nor oversold. The STOCH value of 91.64 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OXY.

Occidental Petroleum Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
$33.31B11.238.33%6.94%15.31%58.83%
77
Outperform
$22.36B7.8920.60%3.21%10.98%-19.25%
76
Outperform
$66.23B11.8119.63%3.08%-5.42%-20.52%
74
Outperform
$41.67B10.3313.55%2.61%51.78%-27.29%
71
Outperform
$45.32B27.056.98%1.94%-1.66%-58.96%
69
Neutral
$18.24B11.4511.42%3.57%16.56%20.21%
65
Neutral
$15.47B7.303.02%5.25%4.27%-62.52%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
OXY
Occidental Petroleum
47.51
-8.37
-14.98%
CTRA
Coterra Energy
24.38
0.87
3.70%
DVN
Devon Energy
35.88
-7.50
-17.29%
EOG
EOG Resources
124.34
-0.47
-0.38%
WDS
Woodside Energy Group
17.66
0.63
3.70%
FANG
Diamondback
149.17
-40.92
-21.53%

Occidental Petroleum Corporate Events

M&A TransactionsBusiness Operations and Strategy
Occidental Petroleum Completes Acquisition of CrownRock
Neutral
Jul 28, 2025

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.

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.Date of analysis: Aug 21, 2025