Occidental Petro rated Overweight by Barclays as attractive 'in-betweener'

|About: Occidental Petroleum Corpor... (OXY)|By:, SA News Editor

Occidental Petroleum (OXY -1.3%) is lower despite meriting an Overweight rating and $84 price target at Barclays as an attractive "in-betweener" that offers E&P-like growth and execution but a risk and cash return profile more comparable to the oil majors.

Barclays believes OXY has a clear line of sight to delivering 8%-plus production growth and an 8%-plus free cash flow yield for years to come.

The firm thinks it is generally understood that OXY has a strong Permian position but that investors may be underestimating long-term upside, saying OXY is drilling some of the most economic wells in the entire basin, particularly in the Northern Delaware; if successful, OXY's recent shale CO2 pilot program also could add to the upside.

Subscribe for full text news in your inbox