Occidental Petroleum Stock Pullback Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy OXY?
Source: Fool
- Stock Price Retreat: Occidental Petroleum reached a 52-week high of $67.45 on March 31, reflecting a nearly 60% year-to-date gain, but has since pulled back to around $58, indicating market reactions to the Iranian conflict and the recent ceasefire agreement.
- Diverse Revenue Streams: The company generates most of its revenue from upstream operations, and as oil prices rise, its revenue growth outpaces expenses, leading to expanded margins, while a growing share of revenue comes from low-carbon ventures, showcasing its strategic positioning in energy transition.
- Acquisition Consequences: The 2019 acquisition of Anadarko for $55 billion is viewed as a misstep, as it closed just before the pandemic crushed oil prices, resulting in skyrocketing debt levels that diminished investment attractiveness, particularly amid rising interest rates in 2022 and 2023.
- Future Growth Expectations: Analysts project a 26% CAGR for Occidental's EPS from 2025 to 2028, and if oil prices remain above $80 per barrel, the company is expected to continue generating cash flow, supporting its new projects in the Permian Basin and Gulf of Mexico.
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Analyst Views on OXY
Wall Street analysts forecast OXY stock price to fall
16 Analyst Rating
4 Buy
9 Hold
3 Sell
Hold
Current: 58.530
Low
38.00
Averages
47.27
High
64.00
Current: 58.530
Low
38.00
Averages
47.27
High
64.00
About OXY
Occidental Petroleum Corporation is an international energy company with assets primarily in the United States, the Middle East and North Africa. The Company is an oil and gas producer in the United States, including a producer in the Permian and DJ basins, and the offshore Gulf of Mexico. Its segments include oil and gas, and midstream and marketing. The oil and gas segment explores for, develops, and produces oil (which includes condensate), natural gas liquids (NGL) and natural gas. The Company's midstream and marketing segment purchases, markets, gathers, processes, transports, and stores oil (which includes condensate), NGL, natural gas, carbon dioxide (CO2) and power. The midstream and marketing segment provides flow assurance and maximizes the value of its oil and gas. It also optimizes its transportation and storage capacity and invests in entities that conduct similar activities. This segment also includes low-carbon venture businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Occidental Petroleum Discovers New Oil Field in Gulf of Mexico
- Oil Discovery: Occidental Petroleum announced a significant oil discovery at the Bandit prospect in the U.S. Gulf, approximately 125 miles south of Louisiana, where the exploration well encountered high-quality Miocene oil-bearing sands, marking a crucial advancement in deepwater exploration.
- Development Potential: The discovery has the potential for subsea tie-backs to adjacent Occidental-operated facilities and others in the vicinity, which could enhance the company's production capacity and competitive position in the region.
- Strategic Importance: Occidental emphasized that this discovery highlights the Gulf of Mexico's role as a reliable source of domestic oil supply, supporting long-term energy security and aligning with national energy strategies.
- Production Capacity: According to its annual report, Occidental is projected to achieve an output of 132,000 barrels of oil equivalent per day by 2025 in the Gulf, reinforcing its status as one of the largest deepwater producers in the U.S.
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Greg Abel's Investment Strategy as CEO of Berkshire Hathaway
- Cash Reserves: Berkshire Hathaway currently holds $373 billion in cash and Treasury bills, demonstrating its strong liquidity position that allows it to seize investment opportunities during market fluctuations, thereby enhancing its financial stability.
- Acquisition Activity: In his first three months as CEO, Abel completed a $9.7 billion acquisition of OxyChem and made an $1.8 billion strategic investment in Tokio Marine, indicating his commitment to actively expanding the business.
- Share Repurchase Program: Abel has reinitiated the company's share repurchase program, ruling out dividends as a means of returning capital to shareholders, a move that could enhance shareholder value when the stock price is deemed reasonable.
- Operating Performance: Berkshire's subsidiaries generated a total of $44.5 billion in earnings last year, showing a slight decline from 2024 but significant growth compared to 2023 and 2022, reflecting the resilience and profitability of its core businesses.
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Abel's Strategic Moves as New CEO of Berkshire Hathaway
- Asset Management Scale: Upon taking over, Abel manages nearly $650 billion in assets, inheriting a massive equity portfolio and cash reserves from Warren Buffett, showcasing the company's robust strength and stability in the market.
- Acquisitions and Investments: In just three months, Abel completed a $9.7 billion acquisition of Occidental Petroleum and, alongside insurance head Jain, invested $1.8 billion to acquire 2.5% of Tokio Marine in Japan, demonstrating his proactive investment strategy and market expansion intentions.
- Share Buyback Program: Abel has reinitiated the company's share repurchase program; although Buffett was cautious about repurchases disregarding stock price, the current valuation being close to fair value makes buybacks beneficial for enhancing shareholder value.
- Strong Operating Performance: Berkshire's subsidiaries generated a combined $44.5 billion in earnings last year, slightly down from 2024 but significantly up from 2023 and 2022, indicating the company's resilience and profitability in diversified operations.
See More
Occidental Petroleum Stock Pullback Analysis
- Stock Price Retreat: Occidental Petroleum reached a 52-week high of $67.45 on March 31, reflecting a nearly 60% year-to-date gain, but has since pulled back to around $58, indicating market reactions to the Iranian conflict and the recent ceasefire agreement.
- Diverse Revenue Streams: The company generates most of its revenue from upstream operations, and as oil prices rise, its revenue growth outpaces expenses, leading to expanded margins, while a growing share of revenue comes from low-carbon ventures, showcasing its strategic positioning in energy transition.
- Acquisition Consequences: The 2019 acquisition of Anadarko for $55 billion is viewed as a misstep, as it closed just before the pandemic crushed oil prices, resulting in skyrocketing debt levels that diminished investment attractiveness, particularly amid rising interest rates in 2022 and 2023.
- Future Growth Expectations: Analysts project a 26% CAGR for Occidental's EPS from 2025 to 2028, and if oil prices remain above $80 per barrel, the company is expected to continue generating cash flow, supporting its new projects in the Permian Basin and Gulf of Mexico.
See More
Oxy Stock Pullback, Future Outlook Positive
- Stock Pullback Analysis: Oxy's stock has retreated from its 52-week high of $67.45 to about $58, primarily influenced by a ceasefire agreement between the U.S. and Iran, which has temporarily halted the rally in oil prices, potentially affecting investor confidence in the short term.
- Oil Prices and Revenue Relationship: Oxy generates most of its revenue from its upstream business, and when oil prices rise, its revenue growth outpaces expenses, thereby enhancing margins; if WTI crude oil prices remain above $80 per barrel, the company is expected to continue generating cash flow.
- Debt and Acquisition Impact: The 2019 acquisition of Anadarko for $55 billion was poorly timed, leading to a surge in debt levels; although Oxy has stabilized its business through restructuring and share repurchases, the high debt remains a risk factor amid rising interest rates.
- Future Growth Expectations: Analysts forecast Oxy's EPS to grow at a 26% CAGR from 2025 to 2028, with a current P/E ratio of 16 times this year's earnings, and insiders have purchased more than three times as many shares as they sold in the past 12 months, indicating strong confidence in the company's future.
See More
Occidental Petroleum Corp Projects Average Global Oil Price of $69.91 per Barrel for Q1 2026, According to SEC Filing
- Company Overview: Occidental Petroleum Corporation reported an average realized oil price of $69.91 per barrel for the first quarter of 2026.
- Market Context: The reported price reflects the company's performance in the global oil market during the specified period.
See More
Occidental Petroleum Discovers New Oil Field in Gulf of Mexico
- Oil Discovery: Occidental Petroleum announced a significant oil discovery at the Bandit prospect in the U.S. Gulf, approximately 125 miles south of Louisiana, where the exploration well encountered high-quality Miocene oil-bearing sands, marking a crucial advancement in deepwater exploration.
- Development Potential: The discovery has the potential for subsea tie-backs to adjacent Occidental-operated facilities and others in the vicinity, which could enhance the company's production capacity and competitive position in the region.
- Strategic Importance: Occidental emphasized that this discovery highlights the Gulf of Mexico's role as a reliable source of domestic oil supply, supporting long-term energy security and aligning with national energy strategies.
- Production Capacity: According to its annual report, Occidental is projected to achieve an output of 132,000 barrels of oil equivalent per day by 2025 in the Gulf, reinforcing its status as one of the largest deepwater producers in the U.S.
See More
Greg Abel's Investment Strategy as CEO of Berkshire Hathaway
- Cash Reserves: Berkshire Hathaway currently holds $373 billion in cash and Treasury bills, demonstrating its strong liquidity position that allows it to seize investment opportunities during market fluctuations, thereby enhancing its financial stability.
- Acquisition Activity: In his first three months as CEO, Abel completed a $9.7 billion acquisition of OxyChem and made an $1.8 billion strategic investment in Tokio Marine, indicating his commitment to actively expanding the business.
- Share Repurchase Program: Abel has reinitiated the company's share repurchase program, ruling out dividends as a means of returning capital to shareholders, a move that could enhance shareholder value when the stock price is deemed reasonable.
- Operating Performance: Berkshire's subsidiaries generated a total of $44.5 billion in earnings last year, showing a slight decline from 2024 but significant growth compared to 2023 and 2022, reflecting the resilience and profitability of its core businesses.
See More
Abel's Strategic Moves as New CEO of Berkshire Hathaway
- Asset Management Scale: Upon taking over, Abel manages nearly $650 billion in assets, inheriting a massive equity portfolio and cash reserves from Warren Buffett, showcasing the company's robust strength and stability in the market.
- Acquisitions and Investments: In just three months, Abel completed a $9.7 billion acquisition of Occidental Petroleum and, alongside insurance head Jain, invested $1.8 billion to acquire 2.5% of Tokio Marine in Japan, demonstrating his proactive investment strategy and market expansion intentions.
- Share Buyback Program: Abel has reinitiated the company's share repurchase program; although Buffett was cautious about repurchases disregarding stock price, the current valuation being close to fair value makes buybacks beneficial for enhancing shareholder value.
- Strong Operating Performance: Berkshire's subsidiaries generated a combined $44.5 billion in earnings last year, slightly down from 2024 but significantly up from 2023 and 2022, indicating the company's resilience and profitability in diversified operations.
See More
Occidental Petroleum Stock Pullback Analysis
- Stock Price Retreat: Occidental Petroleum reached a 52-week high of $67.45 on March 31, reflecting a nearly 60% year-to-date gain, but has since pulled back to around $58, indicating market reactions to the Iranian conflict and the recent ceasefire agreement.
- Diverse Revenue Streams: The company generates most of its revenue from upstream operations, and as oil prices rise, its revenue growth outpaces expenses, leading to expanded margins, while a growing share of revenue comes from low-carbon ventures, showcasing its strategic positioning in energy transition.
- Acquisition Consequences: The 2019 acquisition of Anadarko for $55 billion is viewed as a misstep, as it closed just before the pandemic crushed oil prices, resulting in skyrocketing debt levels that diminished investment attractiveness, particularly amid rising interest rates in 2022 and 2023.
- Future Growth Expectations: Analysts project a 26% CAGR for Occidental's EPS from 2025 to 2028, and if oil prices remain above $80 per barrel, the company is expected to continue generating cash flow, supporting its new projects in the Permian Basin and Gulf of Mexico.
See More
Oxy Stock Pullback, Future Outlook Positive
- Stock Pullback Analysis: Oxy's stock has retreated from its 52-week high of $67.45 to about $58, primarily influenced by a ceasefire agreement between the U.S. and Iran, which has temporarily halted the rally in oil prices, potentially affecting investor confidence in the short term.
- Oil Prices and Revenue Relationship: Oxy generates most of its revenue from its upstream business, and when oil prices rise, its revenue growth outpaces expenses, thereby enhancing margins; if WTI crude oil prices remain above $80 per barrel, the company is expected to continue generating cash flow.
- Debt and Acquisition Impact: The 2019 acquisition of Anadarko for $55 billion was poorly timed, leading to a surge in debt levels; although Oxy has stabilized its business through restructuring and share repurchases, the high debt remains a risk factor amid rising interest rates.
- Future Growth Expectations: Analysts forecast Oxy's EPS to grow at a 26% CAGR from 2025 to 2028, with a current P/E ratio of 16 times this year's earnings, and insiders have purchased more than three times as many shares as they sold in the past 12 months, indicating strong confidence in the company's future.
See More
Occidental Petroleum Corp Projects Average Global Oil Price of $69.91 per Barrel for Q1 2026, According to SEC Filing
- Company Overview: Occidental Petroleum Corporation reported an average realized oil price of $69.91 per barrel for the first quarter of 2026.
- Market Context: The reported price reflects the company's performance in the global oil market during the specified period.
See More
