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Relative valuation derived from Energy sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
9.3%
Sector: 6.7%
Dividend Analysis audit
GROWTH
2.00%
Trailing Yield
$2.00
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
37%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, OCCIDENTAL PETROLEUM CORP /DE/ (OXY) receives a "Hold" rating with a composite score of 52.0/100, ranked #122 out of 4446 stocks. Key factor scores: Quality 50/100, Value 56/100, Momentum 56/100. This is quantitative analysis only — not investment advice.
OCCIDENTAL PETROLEUM CORP /DE/ (OXY) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does OCCIDENTAL PETROLEUM CORP /DE/ Do?
Occidental Petroleum Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of oil and gas properties in the United States, the Middle East, Africa, and Latin America. It operates through three segments: Oil and Gas, Chemical, and Midstream and Marketing. The company's Oil and Gas segment explores for, develops, and produces oil and condensate, natural gas liquids (NGLs), and natural gas. Its Chemical segment manufactures and markets basic chemicals, including chlorine, caustic soda, chlorinated organics, potassium chemicals, ethylene dichloride, chlorinated isocyanurates, sodium silicates, and calcium chloride; vinyls comprising vinyl chloride monomer, polyvinyl chloride, and ethylene. The Midstream and Marketing segment gathers, processes, transports, stores, purchases, and markets oil, condensate, NGLs, natural gas, carbon dioxide, and power. This segment also trades around its assets consisting of transportation and storage capacity; and invests in entities. Occidental Petroleum Corporation was founded in 1920 and is headquartered in Houston, Texas. OCCIDENTAL PETROLEUM CORP /DE/ (OXY) is classified as a large-cap stock in the Energy sector, specifically within the Petroleum And Natural Gas industry. The company is led by CEO Vicki A. Hollub and employs approximately 12,000 people, headquartered in Houston, Texas. With a market capitalization of $61.7B, OXY is one of the prominent companies in the Energy sector.
As of April 2026, OCCIDENTAL PETROLEUM CORP /DE/ receives a Hold rating with a composite score of 52.0/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.OXY ranks #122 out of 4,446 stocks in our coverage universe. Within the Energy sector, OCCIDENTAL PETROLEUM CORP /DE/ ranks #21 of 128 stocks, placing it in the top quartile of its Energy peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
OXY Stock Price and 52-Week Range
OCCIDENTAL PETROLEUM CORP /DE/ (OXY) currently trades at $57.91. The stock lost $0.62 (1.1%) in the most recent trading session. The 52-week high for OXY is $59.15, which means the stock is currently trading -2.1% from its annual peak. The 52-week low is $34.78, putting the stock 66.5% above its annual trough. Recent trading volume was 10.5M shares, indicating strong institutional interest and high liquidity.
Is OXY Overvalued or Undervalued? — Valuation Analysis
OCCIDENTAL PETROLEUM CORP /DE/ (OXY) carries a value factor score of 56/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 18.39x, compared to the Energy sector average of 19.63x — a discount of 6%. The price-to-book ratio stands at 1.71x, versus the sector average of 1.64x. The price-to-sales ratio is 2.31x, compared to 0.47x for the average Energy stock. On an enterprise value basis, OXY trades at 17.35x EV/EBITDA, versus 3.50x for the sector.
Overall, OXY's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
OCCIDENTAL PETROLEUM CORP /DE/ (OXY) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 9.3%, compared to the Energy sector average of 6.7%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 4.0% versus the sector average of 3.7%.
On a margin basis, OCCIDENTAL PETROLEUM CORP /DE/ reports gross margins of 87.9%, compared to 52.7% for the sector. The operating margin is 17.7% (sector: 10.7%). Net profit margin stands at 12.4%, versus 6.4% for the average Energy stock. Revenue growth is running at -2.8% on a trailing basis, compared to -1.2% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
OXY Debt, Balance Sheet, and Financial Health
OCCIDENTAL PETROLEUM CORP /DE/ has a debt-to-equity ratio of 58.0%, compared to the Energy sector average of 55.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 0.94x, which may signal near-term liquidity tightness. Total debt on the balance sheet is $21.40B. Cash and equivalents stand at $2.16B.
OXY has a beta of 0.78, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for OCCIDENTAL PETROLEUM CORP /DE/ is 66/100, reflecting average volatility within the normal range for its sector.
OCCIDENTAL PETROLEUM CORP /DE/ Revenue and Earnings History — Quarterly Trend
In TTM 2026, OCCIDENTAL PETROLEUM CORP /DE/ reported revenue of $27.01B and earnings per share (EPS) of $1.65. Net income for the quarter was $3.40B. Gross margin was 87.9%. Operating income came in at $4.83B.
In FY 2025, OCCIDENTAL PETROLEUM CORP /DE/ reported revenue of $21.59B and earnings per share (EPS) of $1.65. Net income for the quarter was $2.37B. Revenue grew -19.2% year-over-year compared to FY 2024. Operating income came in at $3.13B.
In Q3 2025, OCCIDENTAL PETROLEUM CORP /DE/ reported revenue of $6.62B and earnings per share (EPS) of $0.67. Net income for the quarter was $842M. Gross margin was 87.7%. Revenue grew -7.7% year-over-year compared to Q3 2024. Operating income came in at $1.17B.
In Q2 2025, OCCIDENTAL PETROLEUM CORP /DE/ reported revenue of $6.41B and earnings per share (EPS) of $0.27. Net income for the quarter was $468M. Gross margin was 86.8%. Revenue grew -5.9% year-over-year compared to Q2 2024. Operating income came in at $738M.
Over the past 8 quarters, OCCIDENTAL PETROLEUM CORP /DE/ has demonstrated a growth trajectory, with revenue expanding from $6.82B to $27.01B. Investors analyzing OXY stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
OXY Dividend Yield and Income Analysis
OCCIDENTAL PETROLEUM CORP /DE/ (OXY) currently pays a dividend yield of 2.0%. At this yield, a $10,000 investment in OXY stock would generate approximately $$200.00 in annual dividend income. This compares to the Energy sector average dividend yield of 1.9%, meaning OXY offers above-average income for its sector. The net margin of 12.4% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
OXY Momentum and Technical Analysis Profile
OCCIDENTAL PETROLEUM CORP /DE/ (OXY) has a momentum factor score of 56/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 34/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 46/100 reflects moderate short selling activity.
OXY vs Competitors — Energy Sector Ranking and Peer Comparison
Comparing OXY against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full OXY vs S&P 500 (SPY) comparison to assess how OCCIDENTAL PETROLEUM CORP /DE/ stacks up against the broader market across all factor dimensions.
OXY Next Earnings Date
No upcoming earnings date has been announced for OCCIDENTAL PETROLEUM CORP /DE/ (OXY) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy OXY? — Investment Thesis Summary
OCCIDENTAL PETROLEUM CORP /DE/ presents a balanced picture with arguments on both sides. Low volatility (stability score 66/100) reduces downside risk.
In summary, OCCIDENTAL PETROLEUM CORP /DE/ (OXY) earns a Hold rating with a composite score of 52.0/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on OXY stock.
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Institutional Research Dossier
OCCIDENTAL PETROLEUM CORP /DE/ (OXY) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on Occidental Petroleum (OXY). While the company benefits from a strong position in the oil and gas sector and boasts impressive gross and operating margins, its high debt load and premium valuation relative to peers temper our enthusiasm. The company's aggressive acquisition strategy, particularly the Anadarko deal, has left it with significant financial obligations that could constrain future growth and shareholder returns.
The primary concern revolves around OXY's debt burden and its ability to generate sufficient free cash flow to deleverage while simultaneously investing in future production and potentially returning capital to shareholders. While the company has made progress in reducing debt, the current valuation doesn't fully account for the risks associated with volatile commodity prices and the long-term transition to renewable energy sources. Therefore, a Hold rating is warranted until we see more consistent execution on debt reduction and a more compelling valuation.
Business Strategy & Overview
Occidental Petroleum operates as an integrated energy and chemical company, with its primary focus on oil and gas exploration and production. The company's operations are segmented into three key areas: Oil and Gas, Chemical, and Midstream and Marketing. The Oil and Gas segment, the largest contributor to revenue, is responsible for exploring, developing, and producing crude oil, natural gas liquids (NGLs), and natural gas across various geographies, including the United States, the Middle East, Africa, and Latin America. This segment's profitability is heavily influenced by prevailing commodity prices and production volumes.
The Chemical segment, operating under the OxyChem brand, manufactures and markets a range of basic chemicals and vinyls. These products are used in various industrial applications, including plastics, construction materials, and water treatment. This segment provides some diversification from the volatility of oil and gas prices, although it is still subject to cyclical demand patterns and raw material costs. The Midstream and Marketing segment focuses on gathering, processing, transporting, storing, purchasing, and marketing oil, condensate, NGLs, natural gas, carbon dioxide, and power. This segment also engages in trading activities and invests in related infrastructure.
OXY's strategic positioning is centered around maximizing shareholder value through disciplined capital allocation and operational efficiency. The company has historically pursued growth through both organic exploration and strategic acquisitions. A key element of OXY's strategy involves leveraging its expertise in enhanced oil recovery (EOR) techniques to increase production from existing fields. This approach aims to improve the economics of mature assets and extend their productive life. The company also focuses on cost reduction initiatives and operational improvements to enhance profitability across all segments.
In recent years, OXY has emphasized debt reduction as a top priority, following the acquisition of Anadarko Petroleum in 2019. The company has divested non-core assets and utilized free cash flow to pay down debt. This deleveraging effort is crucial for improving the company's financial flexibility and reducing its vulnerability to commodity price fluctuations. OXY is also exploring opportunities in carbon capture and storage (CCS) as part of its long-term sustainability strategy. This initiative aligns with the growing focus on reducing carbon emissions and could potentially create new revenue streams in the future.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-2.8%
Sector: -1.2%
+142% VS SCTR
Economic Moat Analysis
Occidental Petroleum's economic moat is best characterized as Narrow. While the company possesses certain advantages, they are not substantial enough to create a wide and sustainable competitive edge. The primary source of OXY's moat stems from its expertise in enhanced oil recovery (EOR) and its established position in specific geographic regions, particularly the Permian Basin. EOR techniques allow OXY to extract more oil from existing fields, providing a cost advantage over competitors who rely solely on conventional drilling methods. This expertise is a valuable intangible asset that is difficult to replicate.
However, the oil and gas industry is inherently competitive, and OXY faces intense competition from both large integrated oil companies and smaller independent producers. The price of oil is a major determinant of profitability, and OXY has limited control over this factor. While OXY's Chemical segment provides some diversification, it is also subject to cyclical demand and competition from other chemical manufacturers. The company's Midstream and Marketing segment is largely dependent on its oil and gas production and does not possess significant competitive advantages.
The Anadarko acquisition, while strategically significant, has also increased OXY's debt burden and reduced its financial flexibility. This increased leverage could limit the company's ability to invest in future growth opportunities and respond to changing market conditions. Furthermore, the long-term transition to renewable energy sources poses a significant challenge to the entire oil and gas industry. As demand for fossil fuels declines, OXY will need to adapt its business model and invest in new technologies to remain competitive.
While OXY's EOR expertise and regional presence provide a narrow moat, the company's high debt load, exposure to commodity price volatility, and the long-term shift to renewable energy sources limit its ability to generate consistently superior returns over the long term. The company's ability to successfully navigate these challenges will be crucial for maintaining its competitive position in the future.
Financial Health & Profitability
Occidental Petroleum's financial health presents a mixed picture. While the company boasts impressive gross and operating margins compared to the sector, its high debt load remains a significant concern. The company's revenue has fluctuated significantly in recent years, reflecting the volatility of oil and gas prices. The TTM revenue of $21.59 billion is lower than the revenue figures from FY2024 ($26.73B) and FY2023 ($28.26B), indicating a recent decline in sales. This decline is also reflected in the negative revenue growth rate of -2.8% compared to the sector's -1.7%.
Despite the revenue decline, OXY's profitability metrics remain relatively strong. The company's gross margin of 87.9% significantly exceeds the sector average of 55.1%, indicating its ability to efficiently manage production costs. Similarly, its operating margin of 17.7% and net margin of 12.4% are also higher than the sector averages of 10.6% and 6.3%, respectively. These strong margins suggest that OXY has a competitive advantage in terms of operational efficiency and cost control.
However, OXY's balance sheet is heavily leveraged. The company's total debt of $21.40 billion is significantly higher than its total cash of $2.16 billion. The debt-to-equity ratio of 58.00 is also higher than the sector average of 55.00, indicating a higher level of financial risk. The current ratio of 0.94 suggests that OXY may face challenges in meeting its short-term obligations. The company's high debt load is primarily attributable to the Anadarko acquisition, which significantly increased its financial obligations.
OXY's net income for the TTM period is $2.37 billion, which is lower than the net income figures from FY2024 ($3.08B) and FY2023 ($4.70B). This decline in net income is consistent with the decline in revenue. The company's free cash flow (FCF) for the TTM period is $3.85 billion, which is a positive sign. However, it is important to note that the FCF figure is not available for the quarterly periods, making it difficult to assess the trend in FCF generation. The company's ability to generate consistent FCF will be crucial for deleveraging its balance sheet and returning capital to shareholders.
Valuation Assessment
Occidental Petroleum's valuation appears stretched relative to its peers and historical performance. The company's P/E ratio of 36.8x is significantly higher than the sector average of 19.5x, suggesting that the stock is overvalued based on its earnings. Similarly, its EV/EBITDA ratio of 6.5x is also higher than the sector average of 3.5x, further supporting the argument that the stock is trading at a premium. This premium valuation may reflect investor optimism about the company's future prospects, particularly its potential to benefit from rising oil prices and its efforts to reduce debt.
However, it is important to consider OXY's growth prospects and financial health when assessing its valuation. The company's revenue growth rate of -2.8% is lower than the sector average of -1.7%, indicating that it is not growing as quickly as its peers. Furthermore, its high debt load poses a significant risk to its future earnings and cash flow. The company's ability to successfully deleverage its balance sheet will be crucial for justifying its premium valuation.
A discounted cash flow (DCF) analysis would be necessary to determine the intrinsic value of OXY's stock. However, based on the available data, it appears that the stock is currently trading above its fair value. The company's high P/E and EV/EBITDA ratios, combined with its negative revenue growth and high debt load, suggest that the stock is overvalued. Investors may be better off waiting for a more attractive entry point before investing in OXY.
The market capitalization of $59.88 billion reflects the overall investor sentiment towards the company. However, the current valuation does not fully account for the risks associated with volatile commodity prices, the long-term transition to renewable energy sources, and the company's high debt burden. A more conservative valuation would be warranted given these risks.
Risk & Uncertainty
Occidental Petroleum faces several key risks that could negatively impact its financial performance and stock price. The most significant risk is its exposure to volatile commodity prices. The price of oil and natural gas is subject to significant fluctuations due to factors such as global supply and demand, geopolitical events, and economic conditions. A sharp decline in commodity prices could significantly reduce OXY's revenue and earnings, making it more difficult to service its debt and invest in future growth.
Another major risk is the company's high debt load. The Anadarko acquisition significantly increased OXY's debt burden, and the company is still working to deleverage its balance sheet. High debt levels increase the company's financial risk and limit its flexibility to respond to changing market conditions. A prolonged period of low commodity prices could make it difficult for OXY to meet its debt obligations, potentially leading to financial distress.
The long-term transition to renewable energy sources also poses a significant risk to OXY's business model. As demand for fossil fuels declines, OXY will need to adapt its operations and invest in new technologies to remain competitive. The company's efforts to develop carbon capture and storage (CCS) technology are a step in the right direction, but it is uncertain whether these initiatives will be sufficient to offset the decline in demand for oil and gas.
Regulatory risks also exist, particularly related to environmental regulations and climate change policies. Stricter regulations on greenhouse gas emissions could increase OXY's operating costs and limit its ability to develop new oil and gas projects. Furthermore, political instability in certain regions where OXY operates could disrupt its operations and impact its financial performance.
Bulls Say / Bears Say
The Bull Case
BULL VIEWOccidental Petroleum's strategic focus on enhanced oil recovery (EOR) provides a cost advantage and allows it to maximize production from existing assets, leading to higher profitability.
BULL VIEWThe company's commitment to debt reduction and disciplined capital allocation will improve its financial flexibility and allow it to return more capital to shareholders in the future.
BULL VIEWOccidental Petroleum's investments in carbon capture and storage (CCS) position it to benefit from the growing focus on reducing carbon emissions and could create new revenue streams.
The Bear Case
BEAR VIEWOccidental Petroleum's high debt load makes it vulnerable to volatile commodity prices and limits its ability to invest in future growth opportunities.
BEAR VIEWThe company's premium valuation is not justified by its growth prospects or financial health, making the stock overvalued and susceptible to a correction.
BEAR VIEWThe long-term transition to renewable energy sources poses a significant threat to Occidental Petroleum's business model, as demand for oil and gas declines.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score OXY and 4,400+ other equities.
OCCIDENTAL PETROLEUM CORP /DE/ exhibits a 196% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
4.0%
Sector: 3.7%
Gross Margin
Pricing power and cost efficiency
87.9%
Sector: 52.7%
Operating Margin
Core business profitability
17.7%
Sector: 10.7%
Net Margin
Bottom-line profitability
12.4%
Sector: 6.4%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield1.89%
Yield Delta+6%
Income Projection audit
A $10,000 investment would generate approximately $200 annually in dividends at the current trailing rate.
