Occidental Petroleum Corporation (OXY): A Bull Case Theory

We came crossed a bullish thesis on Occidental Petroleum Corporation (OXY) connected DinoInvestor’s YouTube channel. In this article, we volition summarize the bulls’ thesis connected OXY. Occidental Petroleum Corporation (OXY)'s stock was trading astatine $43.31 arsenic of January 13th. OXY’s trailing and guardant P/E were 31.41 and 21.51 respectively according to Yahoo Finance.

Occidental Petroleum Corporation (OXY) together with its subsidiaries, engages successful the acquisition, exploration, and improvement of lipid and state properties successful the United States and internationally. It operates done 3 segments: Oil and Gas, Chemical, and Midstream and Marketing.

The company’s Q3 2025 update highlights a transformative play for the company, anchored by the $9.7 cardinal merchantability of its OxyCam part to Berkshire, expected to adjacent by year-end. After taxes, astir $8 cardinal volition beryllium realized, with $6.5 cardinal allocated to indebtedness repayment and $1.5 cardinal added to currency connected hand. This indebtedness simplification lowers yearly involvement expenses by astir $350–390 cardinal and brings full indebtedness beneath $15 billion, importantly strengthening the equilibrium sheet.

Operationally, Oxy is preparing its Stratos nonstop aerial seizure installation for CO2 injection successful Q1 2026, targeting enhanced lipid recovery. Early tests amusement a 45% accumulation uplift successful unconventional wells, with imaginable aboriginal injections boosting ratio 60–100%, reducing the request for caller drilling and lowering costs.

Financially, Q3 accumulation averaged 1.46 cardinal barrels of lipid equivalent per day, generating astir $1.5 cardinal successful escaped currency travel earlier moving superior adjustments. Post-OxyCam sale, nett indebtedness falls to astir $14.3 billion, positioning the institution to conscionable its semipermanent leverage targets. Guidance for Q4 anticipates accumulation of 1.44–1.48 cardinal BOE/day with capex adjacent $1.7 billion, supported by commodity prices of WTI $64.93, Brent $68.14, and earthy state $3.28/MCF.

Looking ahead, Oxy plans to prolong operations, turn dividends, resume stock repurchases, and discontinue remaining indebtedness astatine maturity. With a strengthened equilibrium sheet, enhanced accumulation ratio from CO2 injection, and strategical superior allocation, Oxy is well-positioned for sustainable maturation and charismatic shareholder returns.

Previously, we covered a bullish thesis connected Occidental Petroleum Corporation (OXY) by Magnus Ofstad successful May 2025, which highlighted the company’s low-cost Permian Basin operations, diversified concern model, and enactment successful c seizure done its Stratos project. The company's banal terms has been level since our coverage. This is due to the fact that broader marketplace concerns and operational execution challenges weighed connected sentiment, but the thesis remains valid fixed OXY’s world-class assets and strategical potential. DinoInvestor shares a akin thesis but emphasizes the transformative interaction of the $9.7 cardinal OxyCam sale, indebtedness reduction, and upcoming CO2 injection tests astatine Stratos, highlighting near-term equilibrium expanse strengthening and operational ratio improvements.