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OXY

Occidental PetroleumNYSE:OXY Stock Report

Market Cap

US$33.0b

7D

7.3%

1Y

281.4%

Updated

26 Oct, 2021

Data

Company Financials +
OXY fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance0/6
Financial Health3/6
Dividends0/6

OXY Overview

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.

Rewards

Trading at 50.8% below our estimate of its fair value

Earnings are forecast to grow 19.82% per year

Risk Analysis

No risks detected for OXY from our risk checks.

Occidental Petroleum Competitors

Exxon Mobil

NYSE:XOM

US$272.4b

Chevron

NYSE:CVX

US$220.2b

Royal Dutch Shell

ENXTAM:RDSA

€163.2b

BHP Group

ASX:BHP

AU$190.2b

Price History & Performance

Summary of all time highs, changes and price drops for Occidental Petroleum
Historical stock prices
Current Share PriceUS$35.36
52 Week HighUS$8.52
52 Week LowUS$35.75
Beta2.34
1 Month Change25.84%
3 Month Change31.45%
1 Year Change281.45%
3 Year Change-47.65%
5 Year Change-48.75%
Change since IPO136.72%

Recent News & Updates

Oct 15

Occidental Petroleum: Buy Now To Line Up A 10% Yield

When the downturn of 2020 struck Occidental Petroleum, they almost eliminated their former dividends, but if investors buy now, they can line up a very high 10% yield. Thanks to operating conditions recovering they are now back to generating immense free cash flow, which was almost an annualized rate of $6b during the first half of 2021. This allows them to reach their net debt targets by the middle of 2022 or possibly even the end of 2021 if oil prices continue holding at their current level. Once reaching this point their strategy switches to shareholder returns and they can realistically afford to ramp up their dividends back to their former level in the coming years. Since this would provide a very high 10% dividend yield on current cost, I believe that a bullish rating is appropriate.

Sep 21

Occidental Reduces Debt Again

Company paid back more debt in August and September. Interest savings are starting to add up. If energy prices hold steady, dividend return is getting closer.

Sep 10

Occidental Petroleum: The Path Of Recovery Is Made Easier With High Oil Prices

Occidental Petroleum's 2Q21 total revenues and others were $6.010 billion, up significantly from $2.976 billion a year ago and up 9.7% QoQ. The total output was 1,203K Boepd in 2Q21. The Permian operations accounted for about 41.9% of the company's total production. OXY's output was down 14.4% compared to last year. I recommend buying OXY below $23.

Sep 03
Is Occidental Petroleum (NYSE:OXY) Using Debt In A Risky Way?

Is Occidental Petroleum (NYSE:OXY) Using Debt In A Risky Way?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Aug 18

Occidental Petroleum: My Oh My, A Great Oilpatch Buy!

OXY has rebuilt the economics of its petroleum portfolio. Low extraction costs and higher oil prices make a compelling cash flow combination. OXY is singularly focused on balance sheet improvement and has a clear path toward a 50% deleveraging over the next couple of years. There are a number of levers that can be pulled to maximize assets and ESG impact over the same period. We regard OXY as being substantially under-priced and think it has minimized risks at current prices.

Shareholder Returns

OXYUS Oil and GasUS Market
7D7.3%2.4%1.9%
1Y281.4%97.8%33.4%

Return vs Industry: OXY exceeded the US Oil and Gas industry which returned 88.4% over the past year.

Return vs Market: OXY exceeded the US Market which returned 30.3% over the past year.

Price Volatility

Is OXY's price volatile compared to industry and market?
OXY volatility
OXY Beta2.34
Industry Beta1.74
Market Beta1

Stable Share Price: OXY is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: OXY's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
192011,800Vicki Hollubhttps://www.oxy.com

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. The company operates through three segments: Oil and Gas, Chemical, and Marketing and Midstream. The company’s Oil and Gas segment explores for, develops, and produces oil and condensate, natural gas liquids (NGLs), and natural gas.

Occidental Petroleum Fundamentals Summary

How do Occidental Petroleum's earnings and revenue compare to its market cap?
OXY fundamental statistics
Market CapUS$33.02b
Earnings (TTM)-US$5.21b
Revenue (TTM)US$19.52b

1.7x

P/S Ratio

-6.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
OXY income statement (TTM)
RevenueUS$19.52b
Cost of RevenueUS$8.41b
Gross ProfitUS$11.11b
ExpensesUS$16.32b
Earnings-US$5.21b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 04, 2021

Earnings per share (EPS)-5.58
Gross Margin56.93%
Net Profit Margin-26.68%
Debt/Equity Ratio203.7%

How did OXY perform over the long term?

See historical performance and comparison

Dividends

0.1%

Current Dividend Yield

-0.716%

Payout Ratio

Valuation

Is Occidental Petroleum undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OXY ($35.22) is trading below our estimate of fair value ($71.62)

Significantly Below Fair Value: OXY is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: OXY is unprofitable, so we can't compare its PE Ratio to the US Oil and Gas industry average.

PE vs Market: OXY is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate OXY's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: OXY is overvalued based on its PB Ratio (3.9x) compared to the US Oil and Gas industry average (2x).


Future Growth

How is Occidental Petroleum forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

19.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OXY is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: OXY is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: OXY's is expected to become profitable in the next 3 years.

Revenue vs Market: OXY's revenue is expected to decline over the next 3 years (-2.3% per year).

High Growth Revenue: OXY's revenue is forecast to decline over the next 3 years (-2.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OXY's Return on Equity is forecast to be low in 3 years time (14.7%).


Past Performance

How has Occidental Petroleum performed over the past 5 years?

-34.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OXY is currently unprofitable.

Growing Profit Margin: OXY is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: OXY is unprofitable, and losses have increased over the past 5 years at a rate of 34.5% per year.

Accelerating Growth: Unable to compare OXY's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: OXY is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-18.6%).


Return on Equity

High ROE: OXY has a negative Return on Equity (-24.14%), as it is currently unprofitable.


Financial Health

How is Occidental Petroleum's financial position?


Financial Position Analysis

Short Term Liabilities: OXY's short term assets ($12.8B) exceed its short term liabilities ($9.6B).

Long Term Liabilities: OXY's short term assets ($12.8B) do not cover its long term liabilities ($52.1B).


Debt to Equity History and Analysis

Debt Level: OXY's debt to equity ratio (203.7%) is considered high.

Reducing Debt: OXY's debt to equity ratio has increased from 36.1% to 203.7% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable OXY has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: OXY is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 50.4% per year.


Dividend

What is Occidental Petroleum current dividend yield, its reliability and sustainability?

0.11%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OXY's dividend (0.11%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.28%).

High Dividend: OXY's dividend (0.11%) is low compared to the top 25% of dividend payers in the US market (3.48%).


Stability and Growth of Payments

Stable Dividend: OXY is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: OXY is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: OXY is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of OXY's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.5yrs

Average management tenure


CEO

Vicki Hollub (61 yo)

5.5yrs

Tenure

US$14,165,451

Compensation

Ms. Vicki A. Hollub has been the President and Chief Executive Officer at Occidental Petroleum Corporation since December 10, 2015 and April 29, 2016 respectively. Ms. Hollub has been a Director of Lockhee...


CEO Compensation Analysis

Compensation vs Market: Vicki's total compensation ($USD14.17M) is about average for companies of similar size in the US market ($USD11.15M).

Compensation vs Earnings: Vicki's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: OXY's management team is seasoned and experienced (5.5 years average tenure).


Board Members

Experienced Board: OXY's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: OXY insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Occidental Petroleum Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Occidental Petroleum Corporation
  • Ticker: OXY
  • Exchange: NYSE
  • Founded: 1920
  • Industry: Integrated Oil and Gas
  • Sector: Energy
  • Market Cap: US$33.017b
  • Shares outstanding: 933.73m
  • Website: https://www.oxy.com

Number of Employees


Location

  • Occidental Petroleum Corporation
  • 5 Greenway Plaza
  • Suite 110
  • Houston
  • Texas
  • 77046-0521
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 22:32
End of Day Share Price2021/10/26 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.