Occidental Petroleum (OXY) AI Stock Analysis

• Market Cap: $40.46B
• Dividend Yield: 2.34%
• Average Volume (3M): 8.46M
• Price to Earnings (P/E): 29.9
• 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: 8,158,464
• 30 Day Avg. Volume: 8,457,126
• 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: 1.90
• Enterprise Value/Revenue: 1.15
• Enterprise Value/Gross Profit: 3.45
• Enterprise Value/Ebitda: 2.46
• 1Y Price Target: $47.56
• Price Target Upside: 15.80% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 19
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $45.00 ▲(9.57% Upside)

Occidental Petroleum's overall stock score reflects a stable financial position with strong operational efficiency and strategic moves to reduce debt. However, the high P/E ratio and bearish technical indicators suggest caution. The earnings call provided positive insights into operational performance and strategic initiatives, which are key strengths.

Positive Factors

Debt Reduction

Reducing debt enhances financial flexibility and resilience, allowing for more strategic investments and improving long-term stability.

Operational Efficiency

Strong cash flow generation indicates efficient operations and the ability to fund future growth and debt reduction efforts.

Strategic Asset Sale

The sale of OxyChem allows Occidental to focus on core operations and significantly reduce debt, strengthening its financial position.

Negative Factors

Declining Revenue Growth

Negative revenue growth suggests challenges in market demand or competitive pressures, potentially impacting future profitability.

OxyChem Underperformance

Underperformance in the OxyChem segment reflects market challenges, affecting overall profitability and strategic focus.

International Production Challenges

Challenges in international production can limit growth potential and expose the company to geopolitical and operational risks.

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 (NGLs). The company's revenue model relies heavily on the market prices of these commodities, which can be volatile. Key revenue streams include the sale of oil and gas from its wells, as well as revenues from its chemical manufacturing operations, which produce products such as polyvinyl chloride (PVC) and other petrochemicals. Additionally, Occidental has established strategic partnerships and joint ventures that enhance its operational efficiency and expand its reach in various markets. Factors contributing to its earnings include the company's ability to manage production costs, its investment in technology to enhance recovery rates, and its focus on sustainable practices that align with evolving market demands.

Occidental Petroleum Financial Statement Overview

Summary

Occidental Petroleum demonstrates a stable financial position with strong operational efficiency, evidenced by a robust EBITDA margin and low leverage. However, challenges include declining revenue and profit margins, as well as reduced cash flow generation.

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	66.80B	27.10B	28.33B	36.25B	25.96B	17.14B
Gross Profit	22.30B	9.65B	9.74B	17.05B	7.60B	441.00M
EBITDA	31.29B	12.72B	14.54B	22.16B	13.89B	-6.14B
Net Income	5.79B	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	9.64B	4.42B	6.06B	12.46B	7.56B	1.42B
Operating Cash Flow	28.09B	11.44B	12.31B	16.81B	10.43B	3.96B
Investing Cash Flow	-14.08B	-14.59B	-6.98B	-4.87B	-1.25B	-819.00M
Financing Cash Flow	-13.53B	3.84B	-4.89B	-13.71B	-8.57B	-4.52B

Occidental Petroleum Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 41.07
• 50DMA: Negative
• 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 41.07 is below the 20-day moving average (MA) of 41.60, below the 50-day MA of 41.70, and below the 200-day MA of 43.09, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 44.93 is Neutral, neither overbought nor oversold. The STOCH value of 17.73 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
FANG	81 Outperform	$44.89B	10.89	10.92%	2.55%	60.29%	-17.62%
DVN	79 Outperform	$23.54B	8.82	18.35%	2.56%	11.14%	-21.32%
EOG	78 Outperform	$58.61B	10.75	18.48%	3.65%	-5.15%	-19.06%
WDS	74 Outperform	$31.26B	10.44	8.33%	6.54%	15.31%	58.83%
CTRA	73 Outperform	$20.00B	12.12	11.86%	3.35%	26.13%	31.42%
OXY	67 Neutral	$40.46B	29.89	5.82%	2.34%	-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 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.

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.

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.