Occidental Petroleum Has Become Attractive Around Its 14-Year Lows

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About: Occidental Petroleum Corporation (OXY)
by: Aristofanis Papadatos
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Aristofanis Papadatos
Oil & gas, portfolio strategy, value, bonds
Summary

The market has punished OXY to the extreme for its high debt load.

The stock is trading near its 14-year lows and is offering a nearly all-time high dividend yield of 7.7%.

Thanks to its excess free cash flows, OXY will significantly reduce its debt load in the upcoming years.

As a result, it will greatly reduce the risk surrounding the stock while it will also enhance its earnings per share thanks to lower interest expense.

Occidental Petroleum (OXY) has been severely punished by the market for its acquisition of Anadarko for $38 billion. Since Occidental prevailed over Chevron in the bidding war in May, the former has plunged