Occidental Petroleum has been paying down its debt and is poised to benefit from higher oil prices.
OXY stock gains 18.8% in two months, outpacing peers as Permian growth, acquisitions and debt cuts drive momentum.
OXY trims Permian spending by $100 million. Drilling efficiency and usage of new technology will reduce operating expenses, without sacrificing the volumes.
Occidental (OXY) reported earnings 30 days ago. What's next for the stock?
Zacks.com users have recently been watching Occidental (OXY) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Occidental Petroleum stands out with its Permian Basin dominance, global diversification, and leadership in low-carbon technology, making it a compelling energy investment. OXY's operational efficiency, cost reductions, and disciplined capital allocation—highlighted by buybacks and dividends—underscore its financial stability and appeal to value investors. Despite short-term oil price volatility and competitive risks, OXY's strong cash position, Buffett's backing, and acquisition potential provide resilience and upside catalysts.
Warren Buffett's Berkshire Hathaway continues to accumulate Occidental Petroleum (OXY) shares, now holding over 28% of its outstanding shares. This signals Buffett's strong confidence in the company's long-term value. The confidence is well placed judging by the total shareholder yield implied in OXY's Q1 2025 earnings report.
Occidental's strong presence in the Permian Basin and contribution from international assets are boosting its performance amid its exposure to the fluctuating commodity prices.
Occidental's 2025 plan shows rig reductions are driven by efficiency, not production cuts, with volumes maintained and well costs declining. Despite improved free cash flow prospects from non-oil projects in 2026, meaningful shareholder returns are unlikely before 2027. Occidental's balance sheet and shareholder returns lag peers, making it less attractive than majors like Chevron, Exxon, or Shell for diversified exposure.
Occidental (OXY) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Occidental Petroleum reported strong Q1 results. Acquisitions are made to improve results. However, benefits may take time to materialize. Effective management sets and often exceeds goals.
Occidental Petroleum's NYSE: OXY stock price correction hit bottom in April, and the rebound gained momentum in May after a solid earnings beat. Headwinds exist for this and other energy companies, but their leaning into increased production and operational quality is paying off.