Morningstar Rating

Stock Research and Analysis

by Allen Good, CFA

Bulls Say

Occidental is restructuring the company to unlock value. It spun off its California business and plans to sell down its Middle East and Mid-Con assets.
Occidental is increasing production rates and adding to reserves when other integrated energy companies are unable to do so. Through its legacy Permian position, it has a decade's worth of low cost, unconventional drilling inventory.
Higher oil prices and new technologies have opened up additional plays in the Permian Basin on Oxy's existing acreage. 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 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 

Management

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 

Profile

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

2 Energy Stocks With Plenty of Gas Left in the Tank 
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