Occidental Petroleum (OXY) AI Stock Analysis

• Market Cap: $43.25B
• Dividend Yield: 2.26%
• Average Volume (3M): 11.22M
• Price to Earnings (P/E): 17.8
• Beta (1Y): 0.51
• Revenue Growth: 1.35%
• EPS Growth: -33.30%
• Country: US
• Employees: 13,323
• Sector: Energy
• Sector Strength: 53
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.87
• Shares Outstanding: 984,132,700
• 10 Day Avg. Volume: 16,405,750
• 30 Day Avg. Volume: 11,219,829
• PEG Ratio: N/A
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.07
• Enterprise Value/Market Cap: 1.58
• Enterprise Value/Revenue: 0.63
• Enterprise Value/Gross Profit: 6.72
• Enterprise Value/Ebitda: 1.27
• 1Y Price Target: $47.00
• Price Target Upside: 10.80% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 18

• Rating: 74 Outperform
• Price Target: $48.00 ▲(13.15%Upside)

Occidental Petroleum's overall stock score of 74 reflects its strong financial performance and operational efficiency. The earnings call provided positive guidance, particularly regarding cost management and strategic initiatives, which bolsters future growth prospects. The technical analysis and valuation are supportive but suggest cautious optimism amid market volatility.

Positive Factors

Asset Portfolio

OXY's quality asset portfolio, having one of the largest acreages in the US, combined with its efficient cost strategy, are expected to remain core advantages in the future.

Debt Reduction

Occidental has repaid $2.3 billion of debt, which includes all of their 2025 maturities, providing them with headroom in the current environment.

Earnings Performance

Occidental reported strong headline 1Q25 results, driven by outperforming midstream guidance and lower Lease Operating Expenses.

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 Guidance

OXY’s 2Q25 guide was a bit softer than expectations, with 2Q25 volumes trailing JPMe/STe by -1%/-2%, respectively.

Shareholder Returns

The company's cautious stance on oil prices pushes meaningful shareholder returns into 2028.

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, natural gas, and natural gas liquids. Its upstream operations are the largest contributor to its earnings, with key assets located in the Permian Basin, the Rockies, the Gulf of Mexico, and international locations such as the Middle East and Colombia. The company sells its oil and gas production to various customers, including refiners and marketers. Additionally, Occidental's chemical segment, OxyChem, contributes to its revenue by producing and selling basic chemicals, vinyls, and specialty chemicals. This segment serves industries such as construction, automotive, and agriculture. Occidental also earns income from its midstream and marketing operations, which include transportation and storage of oil and gas. Strategic partnerships and joint ventures, especially in international markets, play a significant role in enhancing the company's production capabilities and accessing new resources.

Occidental Petroleum Financial Statement Overview

Summary

Occidental Petroleum maintains a robust financial position with strong profitability and cash flow metrics. Despite a 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	26.73B	28.26B	36.63B	25.96B	17.81B
Gross Profit	10.16B	9.65B	10.11B	17.64B	7.85B	1.24B
EBITDA	13.20B	12.72B	14.54B	22.16B	13.89B	-6.14B
Net Income	3.10B	3.06B	4.70B	13.30B	2.32B	-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	7.48B	901.00M
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: 42.42
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 42.42 is below the 20-day moving average (MA) of 43.30, above the 50-day MA of 41.65, and below the 200-day MA of 47.02, indicating a neutral trend. The MACD of 0.59 indicates Positive momentum. The RSI at 45.99 is Neutral, neither overbought nor oversold. The STOCH value of 9.38 is Positive, 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	82 Outperform	$65.40B	11.20	20.90%	3.23%	-0.23%	-14.82%
COP	79 Outperform	$112.35B	11.35	16.61%	3.49%	4.01%	-10.91%
HES	77 Outperform	$42.72B	19.19	20.82%	1.44%	8.08%	10.59%
FANG	77 Outperform	$40.33B	8.53	14.26%	2.87%	47.89%	-7.87%
OXY	74 Outperform	$43.25B	17.79	9.43%	2.26%	1.35%	-33.30%
DVN	74 Outperform	$20.63B	7.36	20.88%	2.97%	12.06%	-16.37%
Sector *	52 Neutral	C$2.89B	-0.96	-3.26%	6.22%	2.20%	-43.43%

Occidental Petroleum Corporate Events

Occidental Petroleum Elects Board, Amends Incentive Plan

At the 2025 Annual Meeting of Shareholders held on May 2, 2025, Occidental Petroleum Corporation successfully elected ten board nominees, approved executive compensation, ratified KPMG as its independent auditor, and amended its Long-Term Incentive Plan. These decisions reflect strong shareholder support and are expected to influence the company’s strategic direction and governance positively.