Occidental Petroleum: Not Where I Want It To Be Just Yet
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Andres Veurink218 FollowersFollow5ShareSavePlay(16min)CommentsSummaryOccidental Petroleum is rated a hold due to inconsistent operating margins and a lackluster value proposition despite a strong upstream asset base.OXY's vertical integration and recent acquisitions, particularly in the Permian and Barnett Shale, have expanded production but not delivered robust returns in midstream and marketing.The upcoming $9.7 billion chemical segment divestiture to Berkshire Hathaway will strengthen OXY's balance sheet but reduces operational income.OXY trades at a premium P/E versus peers, offers a modest 2.33% yield, and lacks a compelling capital allocation plan for long-term compounding. LYagovy/iStock via Getty Images Investment Thesis Occidental Petroleum (OXY) caught a lot of investors' eyes as Warren Buffett opened a position back in 2022. Since then the share price has returned to a similar price level after initially rising sharply to $75 per share before beginningThis article was written byAndres Veurink218 FollowersFollowMy name is Andres Veurink and I have been in the financial markets for over a decade at this point, spending the majority of that in a hedge fund here in Rotterdam, working my way up as an analyst. My work relfect rigourious standards as I myself have a very high standard as to what I invest my money in. My preferred sectors to follow are tech, specifically SaaS and cloud business. I find these offer incredible growth opportunities and are also very fun to research and follow. It's a very active space with plenty of news coming out each week. Work is my own thoughs and research is done only by myself.Analyst’s 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. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You