Occidental Petroleum (OXY) AI Stock Analysis

• Market Cap: $40.83B
• Dividend Yield: 2.36%
• Average Volume (3M): 9.61M
• Price to Earnings (P/E): 30.2
• Beta (1Y): 0.48
• Revenue Growth: -2.48%
• EPS Growth: -65.26%
• Country: US
• Employees: 13,323
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.64
• Shares Outstanding: 985,210,450
• 10 Day Avg. Volume: 10,024,279
• 30 Day Avg. Volume: 9,606,133
• PEG Ratio: -0.38
• Price to Book (P/B): 1.32
• Price to Sales (P/S): 1.66
• P/FCF Ratio: 10.19
• Enterprise Value/Market Cap: 1.88
• Enterprise Value/Revenue: 2.87
• Enterprise Value/Gross Profit: 8.55
• Enterprise Value/Ebitda: 6.33
• 1Y Price Target: $48.74
• Price Target Upside: 17.62% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 19
• EPS Forecast (FY): 2.25
• Revenue Forecast (FY): $26.18B

• Rating: 67 Neutral
• Price Target: $45.00 ▲(8.59% Upside)

Occidental Petroleum's strong operational performance and strategic debt reduction plans are significant positives, as highlighted in the earnings call. However, declining financial metrics and bearish technical indicators weigh on the overall score. The high P/E ratio suggests potential overvaluation, but the dividend yield offers some compensation.

Positive Factors

Debt Reduction

Reducing debt enhances financial flexibility and reduces interest expenses, improving long-term financial health and resilience.

Record Production Levels

Achieving record production levels indicates strong operational capabilities and market competitiveness, supporting revenue growth.

Cost Efficiency

Cost efficiency improvements enhance profitability and cash flow, enabling reinvestment and financial stability over the long term.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in market demand or pricing power, potentially impacting long-term growth and profitability.

OxyChem Underperformance

Underperformance in the OxyChem segment suggests challenges in the chemicals market, affecting diversification and earnings stability.

International Production Challenges

Challenges in international production may limit global expansion and revenue diversification, affecting long-term strategic goals.

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 shows strong operational efficiency with a robust EBITDA margin and low leverage. However, declining revenue, profit margins, and cash flow generation pose challenges.

Income Statement

Occidental Petroleum's income statement shows a mixed performance. The TTM gross profit margin is 25.50%, which is a decline from the previous year, indicating pressure on profitability. The net profit margin has also decreased to 7.09% from 11.23% in the previous year, reflecting reduced net income. Revenue growth is negative at -1.7%, showing a contraction in sales. However, the company maintains a healthy EBITDA margin of 42.28%, suggesting strong operational efficiency.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.056 in the TTM, significantly improved from previous years, indicating reduced leverage. The return on equity is 5.39%, which is lower than the previous year, suggesting a decrease in profitability relative to shareholder equity. The equity ratio stands at 43.43%, indicating a stable capital structure with a good proportion of equity financing.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth at -20.85% in the TTM, indicating challenges in generating cash. The operating cash flow to net income ratio is 1.19, suggesting adequate cash generation relative to net income. The free cash flow to net income ratio is 0.34, reflecting a moderate conversion of net income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.77B	27.10B	28.33B	36.25B	25.96B	17.14B
Gross Profit	8.99B	9.65B	9.74B	17.05B	7.60B	441.00M
EBITDA	12.15B	12.72B	14.54B	22.16B	13.89B	-6.14B
Net Income	2.07B	3.04B	4.67B	13.22B	2.31B	-14.83B
Balance Sheet
Total Assets	83.47B	85.44B	74.01B	72.61B	75.04B	80.06B
Cash, Cash Equivalents and Short-Term Investments	2.16B	2.13B	1.43B	984.00M	2.76B	2.01B
Total Debt	22.88B	27.10B	20.91B	20.77B	30.39B	37.30B
Total Liabilities	46.71B	50.97B	43.66B	42.52B	54.71B	61.49B
Stockholders Equity	36.26B	34.16B	30.25B	30.09B	20.33B	18.57B
Cash Flow
Free Cash Flow	3.80B	4.42B	6.06B	12.46B	7.56B	1.42B
Operating Cash Flow	11.25B	11.44B	12.31B	16.81B	10.43B	3.96B
Investing Cash Flow	-5.78B	-14.59B	-6.98B	-4.87B	-1.25B	-819.00M
Financing Cash Flow	-5.07B	3.84B	-4.89B	-13.71B	-8.57B	-4.52B

Occidental Petroleum Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 41.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 41.44 is above the 20-day moving average (MA) of 41.33, below the 50-day MA of 43.33, and below the 200-day MA of 43.79, indicating a neutral trend. The MACD of -0.30 indicates Negative momentum. The RSI at 46.38 is Neutral, neither overbought nor oversold. The STOCH value of 27.97 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
EOG	74 Outperform	$58.04B	10.65	18.48%	3.74%	-5.15%	-19.06%
WDS	74 Outperform	$30.63B	10.46	8.33%	6.44%	15.31%	58.83%
FANG	74 Outperform	$41.96B	10.18	10.92%	2.73%	60.29%	-17.62%
CTRA	73 Outperform	$19.61B	11.88	11.86%	3.42%	26.13%	31.42%
DVN	72 Outperform	$22.36B	8.38	18.35%	2.91%	11.14%	-21.32%
OXY	67 Neutral	$40.83B	30.16	5.82%	2.36%	-2.48%	-65.26%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Occidental Petroleum Corporate Events

Occidental Petroleum’s Earnings Call Highlights Record Production and Debt Reduction

Occidental Petroleum Corp. recently held its earnings call, highlighting a robust operational performance despite some challenges. The sentiment was largely positive, driven by record production levels and significant cost savings, although there were concerns about international production and the underperformance of the OxyChem segment.

Occidental Petroleum Reports Q3 Earnings and Strategic Moves

Occidental Petroleum Corporation, a prominent player in the oil and gas industry, is engaged in the exploration and production of oil and natural gas, as well as chemical manufacturing and midstream operations. Headquartered in Houston, Texas, the company is known for its strategic acquisitions and significant presence in the Permian Basin.

Occidental Petroleum Appoints Richard Jackson as COO

On October 1, 2025, Occidental Petroleum promoted Richard A. Jackson to Chief Operating Officer, where he will oversee global oil and gas operations, low-carbon technologies, and other key functions. Jackson, who has been with Occidental since 2003, has a proven track record in leadership roles and is expected to enhance shareholder value through his focus on operational and technological advancements.

The most recent analyst rating on (OXY) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on Occidental Petroleum stock, see the OXY Stock Forecast page.

Occidental Sells OxyChem to Berkshire Hathaway

On October 1, 2025, Occidental Petroleum‘s subsidiaries, Occidental Chemical Holding, LLC and Environmental Resource Holdings, LLC, entered into an agreement to sell Occidental Chemical Corporation (OxyChem) to Berkshire Hathaway for $9.7 billion in an all-cash transaction. The deal, which includes customary adjustments and conditions, will see Berkshire Hathaway acquire all equity interests in OxyChem, with Occidental retaining certain environmental liabilities. The transaction is subject to regulatory approvals and other closing conditions, with a potential closing deadline of March 30, 2026, extendable by 90 days if necessary.

The most recent analyst rating on (OXY) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on Occidental Petroleum stock, see the OXY Stock Forecast page.

Occidental Petroleum Sells OxyChem to Berkshire Hathaway

On October 2, 2025, Occidental Petroleum announced a definitive agreement for Berkshire Hathaway to acquire its chemical business, OxyChem, for $9.7 billion in an all-cash transaction. This strategic move is expected to strengthen Occidental’s financial position by reducing debt and focusing on its core oil and gas operations, while Berkshire Hathaway gains a robust portfolio of chemical assets. The transaction is anticipated to close in the fourth quarter of 2025, pending regulatory approvals.

The most recent analyst rating on (OXY) stock is a Hold with a $45.00 price target. To see the full list of analyst forecasts on Occidental Petroleum stock, see the OXY Stock Forecast page.