Is Occidental Petroleum Corporation (OXY) A Good Stock To Buy Now?

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Occidental Petroleum Corporation, unneurotic with its subsidiaries, engages successful the acquisition, exploration, and improvement of lipid and state properties successful the United States and internationally. OXY is presented arsenic a profoundly mispriced vigor institution undergoing a self-funded deleveraging and ratio transformation, with the marketplace inactive anchored to the post-2022 lipid rhythm correction contempt improving fundamentals. After rising from $10 to $77 during the 2020–2022 lipid surge, the banal has consolidated adjacent $55 arsenic leverage concerns pursuing the CrownRock acquisition weighed connected sentiment.

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However, the institution has already begun reversing that communicative done assertive equilibrium expanse repair and operational optimization alternatively than relying connected higher crude prices. The January 2026 merchantability of OxyChem accelerated indebtedness simplification from $25 cardinal toward $15 billion, with a further $700 cardinal tender connection pushing nett indebtedness person to $14.3 billion, unlocking astir $365 cardinal successful yearly involvement savings.

Management has besides identified $500 cardinal successful upstream outgo efficiencies and $400 cardinal successful midstream optimization, supporting a projected $1.2 cardinal summation successful escaped currency travel successful 2026 alone. This creates a disposable way toward higher equity worth done controlled levers, reinforcing “coiled spring” dynamic. Additional catalysts see structurally little lease operating expenses beneath $8 per tube and imaginable upside from STRATOS, the world’s largest nonstop aerial seizure project, which could present a caller c monetization narrative.

While risks see weaker WTI prices oregon integration delays, Occidental’s 2025 execution way grounds and Buffett-backed shareholder basal fortify assurance successful continued deleveraging and borderline expansion. As fiscal hazard declines and currency travel visibility improves, the banal appears positioned for a rerating erstwhile the marketplace recognizes deleveraging and improving escaped currency travel visibility.

Previously, we covered a bullish thesis connected Occidental Petroleum (OXY) by Magnus Ofstad successful May 2025, which highlighted Permian Basin strength, undervaluation, Berkshire Hathaway backing, and STRATOS optionality amid anemic sentiment. OXY’s banal terms has appreciated by 32.71% since our coverage. Cristobal Botanch shares a akin presumption but emphasizes deleveraging, outgo efficiencies, and equilibrium expanse repair arsenic the superior catalyst.