Morningstar Rating

Stock Research and Analysis

by Allen Good, CFA

Bulls Say

Oxy is in the early stages of developing unconventional resources on its legacy Permian position. Improved efficiency and lower costs could increase its decade's worth of low-cost, unconventional drilling inventory at current prices.
Oxy is restructuring the company to unlock value. It spun off its California business and plans to sell down its Middle East and Mid-Continental assets while using proceeds to repurchase shares.
Through a combination of higher production and cost savings, Oxy should be cash flow neutral after dividends at $60/bbl oil. Read more 

Bears Say

Oxy may lack the experience and skill necessary to compete with smaller peers in developing its existing unconventional acreage in the Permian.
Growing tensions between Middle East countries may impede Oxy's ability to divest a portion of its assets there, or could result in lower valuations.
Oxy's efforts to build a position in the Williston Basin have proven difficult, with poor execution leading to high costs and an inability to build scale. Lower oil prices may now make it difficult to divest these assets at an attractive price. Read more 


Stephen Chazen succeeded Ray Irani as CEO in May 2011. Irani had served as chairman and CEO since 1990. Chazen previously served as president and COO and has been with Oxy since 1994; he has more than 30 years of industry experience. In May 2013, shareholders   Read more 


Occidental Petroleum is an energy company specialising in the exploration for and production of crude oil and natural gas through enhanced oil recovery, primarily in the   Read more 

The 3 Best MLPs to Ride Out the Energy Downturn 
Watch more 

Premium Membership

View all of our analyst reports with a free trial to Premium.