Latest news with #OccidentalPetroleumCorporation
Yahoo
20-05-2025
- Business
- Yahoo
Occidental Petroleum Corporation (OXY): A Bull Case Theory
We came across a bullish thesis on Occidental Petroleum Corporation (OXY) on Substack by Magnus Ofstad. In this article, we will summarize the bulls' thesis on OXY. Occidental Petroleum Corporation (OXY)'s share was trading at $43.04 as of May 16th. OXY's trailing and forward P/E were 17.43 and 18.87 respectively according to Yahoo Finance. Aerial view of oil and gas drilling rigs in sun-kissed desert. Occidental Petroleum (OXY) is down nearly 13% year-to-date and remains unloved by investors despite trading at a compelling valuation of under 12x earnings and holding a spot among Berkshire Hathaway's largest equity positions. OXY is a leading operator in the Permian Basin, which offers some of the lowest-cost, longest-life production assets in the U.S., allowing the company to stay cash flow positive even with oil prices in the low $30s. This operational efficiency is supported by a diversified business model that includes chemical and midstream segments, providing stability beyond upstream oil production. OXY is also positioning itself as a leader in carbon capture, with its flagship Stratos project—a large-scale Direct Air Capture (DAC) facility in Texas—set to begin initial operations in Q3 2025 and reach full-scale commercial functionality by year-end 2025. However, investor enthusiasm for such green initiatives has cooled recently, and broader concerns about OXY's large debt burden and inconsistent production performance have weighed on sentiment. While the company has world-class assets and long-term strategic potential, execution missteps have made the stock difficult to own. Nonetheless, with Berkshire Hathaway maintaining a nearly 30% ownership stake and continued belief in OXY's value, a turnaround in operational delivery could spark a positive rerating. The stock's current price reflects considerable skepticism, but if OXY can regain investor confidence by meeting production and financial targets more reliably, the upside could be substantial. Occidental Petroleum Corporation (OXY) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 68 hedge fund portfolios held OXY at the end of the fourth quarter which was 71 in the previous quarter. While we acknowledge the risk and potential of OXY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than OXY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18-05-2025
- Business
- Yahoo
Occidental Petroleum Corporation (OXY) Joins Hands with ADNOC to Develop Texas Direct Air Capture Hub
It was recently revealed that Occidental Petroleum Corporation (NYSE:OXY) has formed an agreement with UAE's ADNOC for the development of a direct air capture facility in South Texas. Let us shed some light on this development. Occidental Petroleum Corporation (NYSE:OXY) is one of the largest oil and gas producers in the United States, including a leading producer in the Permian and DJ basins and offshore Gulf of Mexico. It was recently announced that Occidental Petroleum Corporation (NYSE:OXY) and its subsidiary, 1PointFive, have entered into an agreement with XRG, the investment company of Abu Dhabi National Oil Company, to evaluate a potential JV to develop a direct air capture (DAC) facility in South Texas. As part of the joint venture, ADNOC will consider investing up to $500 million for the development of the facility, designed to capture 500,000 tons of carbon dioxide per year. The two energy giants have been discussing opportunities to collaborate on carbon capture, utilization, and storage projects in the U.S. and UAE since signing an MoU in 2023. The Strategic DAC Framework Agreement was signed during President Trump's recent visit to the United Arab Emirates, when the Gulf nation announced plans to raise its energy investments in the United States to $440 billion in the next decade. Vicki Hollub, President and CEO of Occidental Petroleum Corporation (NYSE:OXY), stated: 'We are proud to advance our decades-long partnership with ADNOC and XRG on our South Texas DAC Hub, which we believe will deliver game-changing technology to support U.S. energy independence and global goals. Agreements like this, along with U.S. DOE support, demonstrate continued confidence in DAC as an investable technology that can create jobs and economic value in the United States and Texas.' While we acknowledge the potential of OXY to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than OXY and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 10 Cheap Energy Stocks to Buy Now and 10 Most Undervalued Energy Stocks According to Hedge Funds. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18-05-2025
- Business
- Yahoo
Occidental Petroleum Corporation (OXY) Joins Hands with ADNOC to Develop Texas Direct Air Capture Hub
It was recently revealed that Occidental Petroleum Corporation (NYSE:OXY) has formed an agreement with UAE's ADNOC for the development of a direct air capture facility in South Texas. Let us shed some light on this development. Occidental Petroleum Corporation (NYSE:OXY) is one of the largest oil and gas producers in the United States, including a leading producer in the Permian and DJ basins and offshore Gulf of Mexico. It was recently announced that Occidental Petroleum Corporation (NYSE:OXY) and its subsidiary, 1PointFive, have entered into an agreement with XRG, the investment company of Abu Dhabi National Oil Company, to evaluate a potential JV to develop a direct air capture (DAC) facility in South Texas. As part of the joint venture, ADNOC will consider investing up to $500 million for the development of the facility, designed to capture 500,000 tons of carbon dioxide per year. The two energy giants have been discussing opportunities to collaborate on carbon capture, utilization, and storage projects in the U.S. and UAE since signing an MoU in 2023. The Strategic DAC Framework Agreement was signed during President Trump's recent visit to the United Arab Emirates, when the Gulf nation announced plans to raise its energy investments in the United States to $440 billion in the next decade. Vicki Hollub, President and CEO of Occidental Petroleum Corporation (NYSE:OXY), stated: 'We are proud to advance our decades-long partnership with ADNOC and XRG on our South Texas DAC Hub, which we believe will deliver game-changing technology to support U.S. energy independence and global goals. Agreements like this, along with U.S. DOE support, demonstrate continued confidence in DAC as an investable technology that can create jobs and economic value in the United States and Texas.' While we acknowledge the potential of OXY to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than OXY and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 10 Cheap Energy Stocks to Buy Now and 10 Most Undervalued Energy Stocks According to Hedge Funds. Disclosure: None.
Yahoo
12-05-2025
- Business
- Yahoo
Occidental Petroleum (OXY): Among Billionaire Glenn Russell Dubin's Stock Picks with Huge Upside Potential
We recently published a list of . In this article, we are going to take a look at where Occidental Petroleum Corporation (NYSE:OXY) stands against Billionaire Glenn Russell Dubin's other stock picks with huge upside potential. Glenn Russell Dubin is one of the industry's most experienced hedge fund managers, best known as the co-founder of Highbridge Capital Management, a multi-strategy investment business he founded with Henry Swieca in 1992. Before being bought by JPMorgan Chase in 2004, the firm quickly rose to prominence as one of Wall Street's most sophisticated hedge funds. As of March 2024, Highbridge Capital manages more than $7.1 billion in discretionary assets and has a focused exposure to growth industries. Dubin has long been involved in basic research and multi-asset investing through Highbridge and his private investment firm, Dubin & Company. His portfolio demonstrates a high-conviction strategy, with the top ten holdings accounting for more than 40% of reported 13F equities. Dubin's top stock picks frequently coincide with broader macroeconomic themes, such as monetary easing, capital market expansion, and industrial revival, making them excellent bets for long-term investors looking for asymmetric risk-reward ratios. The background for these investments is especially attractive. Financial markets rebounded strongly in 2024, with financial equities up more than 30% by the end of the year, owing to lower inflation, lower interest rates, and strong investor sentiment. Even if the United States' GDP growth is expected to fall from 2.7% in 2024 to 1.5% in 2025, hopes of Fed rate cuts and a more stable regulatory environment are keeping financial industry momentum alive. Meanwhile, growing corporate refinancing needs and record-high consumer debt are steering capital into private credit and asset-backed lending—areas where Highbridge has traditionally excelled. The industrial sector is also experiencing a significant revival, with a 26% increase in 2024 driven by demand for reshored manufacturing, clean energy buildout, and infrastructure construction. With only a quarter of the $1.9 trillion in planned North American infrastructure projects underway, there is still enormous growth potential. At the same time, reduced interest rates are expected to boost housing activity, and aerospace demand is expected to rise as airlines revamp their aged fleets. These macroeconomic drivers continue to provide appealing entry points for cyclical names with long-term upside. Tariff concerns have increased volatility in the equity markets, particularly in light of proposed higher tariffs on steel and aluminum imports. However, other investors see this as a temporary disruption that could eventually benefit domestic manufacturers and capital goods industries. In reality, leading market commentators argue that predictions of a fresh wave of trade protectionism are exaggerated, with underlying fundamentals remaining strong across major value industries. In that scenario, this may be a good time to follow experienced managers such as Glenn Dubin. As markets reset and valuations in banking and industrial stocks decline from their 2024 highs, the opportunity to purchase into structurally good companies at a discount is wide open. Highbridge Capital's recent bets indicate trust in sectors that are not only rebounding but evolving, and these top stock picks might provide considerable upside as the market rebalances in 2025. To compile a list of Billionaire Glenn Russell Dubin's 10 Stock Picks with Huge Upside Potential, we studied Greenlight Capital's Q4 2024 13F filings to identify billionaire Glenn Russell Dubin's stock picks with the most upside potential. We evaluated the firms in ascending order of upside potential. These stocks are also popular with elite hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). Oil derricks in the background with a few workers in the foreground, emphasizing the company's oil and gas production activities. Number of Hedge Fund Holders: 68 Upside Potential: 33.10% Occidental Petroleum Corporation (NYSE:OXY) is a prominent player in the energy sector, with operations in upstream oil and gas production, basic chemicals manufacturing, and midstream logistics. Its U.S. operations, particularly in the Permian Basin, account for a considerable portion of its total output, while foreign assets diversify its hydrocarbon portfolio. The company also distributes and transports natural gas liquids, carbon dioxide, and electricity, positioning itself as an integrated player in the evolving energy sector. In terms of financial performance, Occidental Petroleum Corporation (NYSE:OXY) generated $4.9 billion in free cash flow for the fiscal year ending December 31, 2024, including $1.4 billion in the fourth quarter alone. Occidental Petroleum Corporation (NYSE:OXY) paid out $800 million in dividends and met its $4.5 billion debt reduction goal seven months early. OxyChem, the chemical division, generated $1.1 billion in pre-tax income in 2024. Notably, capital expenditures were $6.8 billion, at the low end of guidance. The board's 9% dividend hike demonstrated confidence in the company's cash-producing capabilities. Furthermore, strategic growth through the Crown Rock acquisition included high-margin Midland Basin assets with an estimated output of more than 170,000 BOE/day by 2025. Occidental Petroleum Corporation (NYSE:OXY) has advanced major carbon capture initiatives, including the Stratos facility and the Battleground project. In 2025, output is projected to rise to 1.42 million BOE/day, driven by more than 15% growth in the Permian. OxyChem is expected to contribute $1 billion in profits. These actions are consistent with Occidental's plans to improve long-term margins and support its energy transition strategies. While Q1 production is expected to be weaker due to seasonality and pipeline constraints, output is forecasted to rebound significantly in the second half of 2025. Glenn Russell Dubin's stock portfolio holds $42.9 million worth of Occidental Petroleum Corporation (NYSE:OXY) shares, or 1.6% of his portfolio, positioning OXY as a key long-term energy investment with substantial upside, driven by improving oil demand and production economics. Overall, OXY ranks 8th on our list of Billionaire Glenn Russell Dubin's stock picks with huge upside potential. While we acknowledge the potential of OXY, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than OXY but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at .
Yahoo
05-05-2025
- Business
- Yahoo
Is Occidental Petroleum Corporation (OXY) Among the Top Commodity Producers With the Highest Upside Potential?
We recently compiled a list of the Top 15 Commodity Producers With the Highest Upside Potential. In this article, we are going to take a look at where Occidental Petroleum Corporation (NYSE:OXY) stands against the other Commodity Producer stocks. Commodity producer stocks are shares of publicly listed firms that produce, explore, or distribute commodities. These businesses are frequently interested in metals, mining, agriculture, and energy. Commodity producer stocks are chosen by investors to obtain exposure to both the equity and commodities markets, potentially profiting from heightened interest in either. The commodity market is booming. According to a research report, the size of the global commodity services market was projected at $3.56 billion in 2024 and is anticipated to grow at a compound annual growth rate (CAGR) of 8.65% from 2025 to 2034, from $3.87 billion in 2025 to roughly $8.16 billion by 2034. Regionally, the commodity services industry is dominated by North America, while Asia Pacific is projected to grow at a quick pace. However, the World Bank's April 2025 Commodity Markets Outlook projects that global commodity prices will plummet, falling 12% in 2025 and further 5% in 2026 to their lowest level since 2020. The anticipated drop is being driven by slowing global economic growth and persistently high oil supply. This decline carries risks to economic growth in developing countries, with two-thirds likely to see setbacks, even though it may reduce short-term price pressures associated with rising trade barriers. Notwithstanding the drop, nominal prices will still be higher than they were before the pandemic. Ayhan Kose, the World Bank Group's Deputy Chief Economist and Director of the Prospects Group, stated: 'Commodity prices have whipsawed throughout the 2020s—plummeting with arrival of the COVID-19 pandemic, then surging to record highs after Russia's invasion of Ukraine, and then sinking again,' said Ayhan Kose, the World Bank Group's Deputy Chief Economist and Director of the Prospects Group. 'In an era of geopolitical tensions, surging demand for critical minerals, and more frequent natural disasters, that could become the new normal. Successfully navigating through repeated commodity prices swings will require developing economies to build fiscal space, strengthen their institutions, and improve investment climates to facilitate job creation.' On the other hand, Morgan Stanley, on February 21, highlighted that 2025 is anticipated to be a crucial year for commodity markets, influenced by supply fundamentals, inflation patterns, and dollar fluctuations. Inflation in the United States is still high, falling short of the Federal Reserve's 2% target in December with headline CPI readings of 2.9% and core CPI readings of 3.2%. After the U.S. presidential election, policy changes—particularly related to immigration, deficits, and tariffs—have raised inflation expectations. According to data from the University of Michigan, they rose from 2.8% to 3.3% in just one month. Commodity prices have generally been supported by these conditions. Since late September, the U.S. dollar has risen by almost 8%, in part because of growing interest rates and policy expectations. Global demand for commodities is usually pressured by a strong dollar, but if the currency stabilizes or depreciates, it may eliminate a significant obstacle. Although recent contango suggests sufficient short-term supply, a yield-adjusted perspective reveals markets in backwardation at about 4%, showing ongoing physical tightness. This suggests that inventories for essential commodities remain low, making the market more susceptible to demand shocks. Commodity performance in 2025 is supported by tight supply, high inflation, as well as potential dollar weakness. Oil derricks in the background with a few workers in the foreground, emphasizing the company's oil and gas production activities. To collect data for this article, we examined companies operating in the commodity sector and then compiled a list of the stocks with the highest upside potential according to Wall Street analysts, as of May 1, 2025. To keep our list relevant, we have only included companies with a market cap of $10 billion and above. The following are the Commodity Producers with the Highest Upside Potential. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here). Analysts' Upside Potential as of May 01: 29.28% Occidental Petroleum Corporation (NYSE:OXY) is one of the world's leading independent oil and gas producers. Its upstream operations are dispersed throughout North Africa, the Middle East, and the US. The firm owns a majority equity stake in Western Midstream and operates a consolidated midstream business that supplies the upstream segment with gathering, processing, and transportation services. The portfolio also consists of a chemicals company that makes PVC and caustic soda. The latter segment benefits from low energy and ethylene prices, but its profitability is governed by the strength of the overall economy. Despite having dropped over 40% from its peak, Occidental Petroleum Corporation (NYSE:OXY) is still a strong investment opportunity due to its affordable price and advantageous supply dynamics. The lower-than-average U.S. oil supply at the moment may eventually catalyze rising oil prices, which would be advantageous to the company. When compared to competitors like ExxonMobil, Chevron, and BP, the business seems to be reasonably valued from a valuation perspective, particularly when looking at PEG and PE indicators. The business stands to benefit from operational leverage as well as a possible market re-rating as energy markets normalize and supply limitations persist. The firm's combination of industry tailwinds and enticing valuation metrics places it as a remarkable fallen angel with a positive risk/reward profile for investors looking for value in the energy sector. According to Occidental Petroleum Corporation (NYSE:OXY), production in the Permian Basin is expected to rise by more than 15% by 2025. This is due to a modest increase across legacy positions and a full year of CrownRock contributions. It is anticipated that CrownRock assets alone will average more than 170,000 BOE per day, which is more than 5% growth. The company's US onshore portfolio accounts for more than 75% of its oil and gas capital, with the Permian receiving a sizable share of this allocation. Overall, OXY ranks 10th on our list of the Top Commodity Producers With the Highest Upside Potential. While we acknowledge the potential of OXY as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than OXY but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
