Occidental Petroleum's Premium May Be Too Optimistic - Testing Its Buffett Support Soon

Juxtaposed Ideas profile picture
Juxtaposed Ideas


  • OXY continues to enjoy a massive Buffett premium at 105.89% YTD against its peers, despite the lower shareholder returns.
  • Though OXY boasts improved operating and profit margins, it is evident that the management remains laser-focused on aggressive deleveraging through 2024 instead.
  • While that strategy may prove prudent during this uncertain environment, its minimal dividends will also not cushion the incoming volatility in the oil/gas industry.
  • Combined with the Russian price cap, February 2023 ban, and potential windfall tax, it remains to be seen if the Buffett story can provide sufficient support ahead.

Man in bewilderment shrugging shoulders and looking at camera with confusion


Investment Thesis

OXY YTD Stock Price

OXY YTD Stock Price

Seeking Alpha

The Buffett premium is still massively apparent for the Occidental Petroleum Corporation (NYSE:OXY) stock, given the impressive YTD rally of 105.89%, against Exxon Mobil Corporation (XOM) at 63.13%, Chevron

WTI Spot Prices After The Blood Bath on 05 December

Macro Trends

OXY Revenue, Net Income ( in billion $ ) %, EBIT %, and EPS

S&P Capital IQ

OXY Cash/ Equivalents, FCF ( in billion $ ) %, Debt, and Dividend

S&P Capital IQ

OXY Projected Revenue, Net Income ( in billion $ ) %, EBIT %, EPS, FCF ( in billion $ ) %, and Dividends

S&P Capital IQ

OXY YTD EV/Revenue and P/E Valuations

S&P Capital IQ

The US Ending Stocks of Crude Oil in SPR


This article was written by

Juxtaposed Ideas profile picture
I am a full-time analyst interested in a wide range of stocks. With my unique insights and knowledge, I hope to provide other investors with a contrasting view of my portfolio, given my particular background.Prior to Seeking Alpha, I worked as a professionally trained architect in a private architecture practice, with a focus on public and healthcare projects. My qualifications include:- Qualified Person with the Board of Architects, Singapore.- Master's in Architecture from the National University of Singapore.- Bachelor in Arts from the National University of Singapore.If you have any questions, feel free to reach out to me via a direct message on Seeking Alpha or leave a comment on one of my articles.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.

Recommended For You

Comments (91)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.