Morningstar Rating
Stock XNYS Rating as of
$52.53 +0.29(0.55%)
View Full ChartAs of Cboe BZX Real-Time Price Open
Company Report
Company Report
Occidental Petroleum: Expected Midstream Savings Drive an Incremental 7% Valuation Increase
Joshua Aguilar
After reassessing our valuation of no-moat Occidental Petroleum, we lift our fair value estimate by 7% to $62. We previously did not incorporate the impact from Oxy’s midstream business benefiting from a reduction in crude oil and transportation rates from the Permian to the Gulf Coast. Management expects these lower rates will hit financials by the end of the of the third quarter of 2025. The company expects annualized savings from these rate reductions of $300 million to $400 million, with 40% of savings starting in 2025, and the full savings realized in 2026. We have no reason to disagree with this assertion and model the midpoint of this expectation.
Price vs Fair Value
Price vs Fair Value
OXY is trading at a 482% premium.
Price
$52.24
Fair Value
$45.00
Uncertainty
Very High
- 1-Star Price
- $462.40
- 5-Star Price
- $73.00
- Economic Moat
- Bghbn
- Capital Allocation
- Vckrnffv
Bulls Say, Bears Say
Bulls Say, Bears Say
Bulls
Oxy has a dominant position in the Permian Basin, which is the cheapest source of production in the US and is expected to be a major growth engine in the next few years.
Bears
Though Oxy’s Permian wells exhibit very high initial production rates, they also decline very quickly.
News
News
- Global Carbon Dioxide Removal Market Size Expected to Reach $2.54 Billion By 2033 as Climate Change Concerns Grow
- 1PointFive’s South Texas Direct Air Capture Hub Awarded U.S. Department of Energy Funding
- Occidental Announces Continued Progress on Debt Reduction and Divestiture Initiatives
- WESTERN MIDSTREAM ANNOUNCES PRICING OF SECONDARY PUBLIC OFFERING OF COMMON UNITS
- Occidental Announces Launch of Secondary Offering
- Occidental Announces Second Quarter 2024 Results
- Occidental Announces Termination of Exchange Offer and Consent Solicitation for CrownRock Notes
Trading Information
Trading Information
- Previous Close Price
- $52.24
- Day Range
$52.42–53.10
- 52-Week Range
$49.91–71.18
- Bid/Ask
- $52.53/$52.54
- Market Cap
- $48.10 Bil
- Volume/Avg
- 4.4 Mil/9.6 Mil
Key Statistics
Key Statistics
- Price/Earnings (Normalized)
- 14.57
- Price/Sales
- 1.84
- Dividend Yield (Trailing)
- 1.61%
- Dividend Yield (Forward)
- 1.68%
- Total Yield
- 1.67%
Company Profile
Company Profile
Occidental Petroleum is an independent exploration and production company with operations in the United States, Latin America, and the Middle East. At the end of 2023, the company reported net proved reserves of nearly 4 billion barrels of oil equivalent. Net production averaged 1,234 thousand barrels of oil equivalent per day in 2023 at a ratio of roughly 50% oil and natural gas liquids and 50% natural gas.
- Sector
- Energy
- Industry
- Oil & Gas E&P
- Stock Style Box
- Mid Core
- Total Number of Employees
- 12,570
- Website
- https://www.oxy.com
Competitors
Competitors
- Marathon Oil Corp MRO
- Devon Energy Corp DVN
Valuation
Valuation
| Metric | OXY | MRO | DVN |
|---|---|---|---|
Price/Earnings (Normalized) | 14.57 | 9.92 | 7.30 |
Price/Book Value | 1.99 | 1.39 | 2.06 |
Price/Sales | 1.84 | 2.47 | 1.69 |
Price/Cash Flow | 4.40 | 4.04 | 3.85 |
Price/Earnings
OXY
MRO
DVN
Financial Strength
Financial Strength
| Metric | OXY | MRO | DVN |
|---|---|---|---|
Quick Ratio | 0.59 | 0.50 | 0.91 |
Current Ratio | 1.04 | 0.57 | 1.11 |
Interest Coverage | 6.79 | 6.94 | 13.00 |
Quick Ratio
OXY
MRO
DVN
Profitability
Profitability
| Metric | OXY | MRO | DVN |
|---|---|---|---|
Return on Assets (Normalized) | 4.68% | 7.71% | 14.62% |
Return on Equity (Normalized) | 15.67% | 13.60% | 30.07% |
Return on Invested Capital (Normalized) | 7.97% | 10.60% | 20.63% |
Return on Assets
OXY
MRO
DVN
Oil & Gas E&P Industry Comparables
Oil & Gas E&P Industry Comparables
| 1-Day Chart | Name | Price | Morningstar Rating for Stocks | Capital Allocation | Economic Moat | Market Cap |
|---|---|---|---|---|---|---|
| ConocoPhillips COP | Cjzkncsth | Vdrcxt | $127.4 Bil | |||
| EOG Resources Inc EOG | Mgqfchcwkz | Tzsrp | $72.6 Bil | |||
| Diamondback Energy Inc FANG | Txmvgjvnc | Trpyws | $54.2 Bil | |||
| Hess Corp HES | Vvjvgwdgm | Mkdnqt | $41.7 Bil | |||
| Devon Energy Corp DVN | Kyxgxyvgn | Nkgyqvz | $25.7 Bil | |||
| EQT Corp EQT | Dyswrzmb | Dncl | $21.4 Bil | |||
| Marathon Oil Corp MRO | Rqbkjsjx | Kkqq | $15.5 Bil | |||
| APA Corp APA | Vynvbtmp | Fgrf | $9.4 Bil | |||
| Antero Resources Corp AR | Szhrjwp | Ytb | $9.0 Bil |
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