The share price of Occidental Petroleum Corporation (NYSE:OXY) fell by 1.55% between December 17 and December 24, 2025, putting it among the Energy Stocks that Lost the Most This Week. Occidental Petroleum (OXY) Price Target Trimmed by Analysts Occidental Petroleum Corporation (NYSE:OXY) is an independent exploration and production company with assets primarily in the United States, the Middle East, and North Africa. Occidental Petroleum Corporation (NYSE:OXY) has received some negative attention from a ...

Core Viewpoint - Occidental Petroleum Corp (OXY) is expected to increase its dividend in late January or early February, with a potential target price of $50 per share based on its average dividend yield, indicating a possible upside of over 25% from its current trading price of $39.77 [1][3]. Dividend Information - OXY's stock price has decreased from $48.10 on September 29 to $39.77, but has shown some recovery from a low of $38.92 on December 16 [1]. - The company has consistently raised its dividend per share (DPS) after maintaining the same DPS for four quarters, which it has done as of November 5 [4]. - A proposed increase in DPS to $1.00 represents a 4.2% rise, which is lower than the previous year's 9% increase from 84 cents to 96 cents [4]. Valuation and Yield Analysis - The average dividend yield for OXY over the last 12 months is 2.33%, while the current yield at $39.77 is approximately 2.414% [5]. - Historical data shows that OXY's dividend yield has fluctuated between 1.16% and 2.38% over the past five years [5]. - Assuming a conservative estimate of a 2.0% dividend yield, if OXY raises its DPS to $1.00, the target price could reach $50.00, reflecting a mean reversion effect [6].

Core Viewpoint - A growing global oil glut is leading to declining oil prices and negatively impacting energy stocks, suggesting investors reconsider their positions in this sector as they approach the new year [1]. Oil Supply and Prices - There are currently 1.4 billion barrels of oil in transit or storage, which is 24% higher than the average for this time of year from 2016 to 2024 [2]. - West Texas Intermediate oil is trading at approximately $57 per barrel, down $15 from the start of the year, while Brent oil is priced around $60 per barrel, also down $15 from early 2025 [3]. - The average price of gasoline in the U.S. has fallen below $2.90, marking the lowest level since the COVID-19 pandemic [4]. Impact on Energy Stocks - Energy stocks are experiencing downward pressure due to falling oil prices, with Chevron's share price down 9% since early September [5]. - ExxonMobil has shown slightly better resilience but is also trending lower, while ConocoPhillips has decreased about 9% since early September [7]. - Occidental Petroleum is down 20% for the year, and Marathon Petroleum has dropped 16% over the past month [8]. Future Outlook - Analysts predict that the global oil oversupply will continue into 2026, with the International Energy Agency forecasting a supply-demand mismatch of over 3.8 million barrels per day [11]. - The U.S. Energy Information Administration anticipates that rising inventories will exert downward pressure on oil prices, projecting Brent oil to fall to $55 in the first quarter of 2026 [12]. Industry Adjustments - Major oil companies are responding to the downturn by reducing their workforces, with ExxonMobil announcing 2,000 job cuts as part of a restructuring plan [15]. - Other companies, including ConocoPhillips and Chevron, are also implementing layoffs [15]. Economic Implications - Lower oil prices can stimulate economic growth globally, except in countries heavily reliant on oil exports, which negatively affects oil companies and their shareholders [17]. - The relationship between oil prices and supply is complex, as lower prices can lead to reduced production and investment, eventually decreasing supply while increasing demand [18].

Core Viewpoint - ConocoPhillips is positioned as a more attractive investment compared to Occidental Petroleum due to its clear growth strategy and strong financial position. Group 1: Occidental Petroleum - Occidental Petroleum is a leading international energy company with operations in the U.S., Middle East, and North Africa, but it has accumulated significant debt from acquisitions [3]. - The company plans to reduce its principal debt balance below $15 billion by selling OxyChem to Berkshire Hathaway for $9.7 billion, which will allow it to focus on shareholder value creation [4]. - Despite the sale, Occidental lacks a firm action plan for growth, relying on free cash flow and asset sales to manage its debt [6]. Group 2: ConocoPhillips - ConocoPhillips has a robust growth strategy, having invested heavily in acquisitions funded primarily through equity, resulting in a strong balance sheet [6]. - The company is investing $3.4 billion in three liquefied natural gas (LNG) projects and $8.5 billion to $9 billion in the Willow oil project in Alaska, which is expected to generate an additional $6 billion in annual free cash flow by 2029 [8]. - This increasing cash flow will support dividend growth within the top 25% of S&P 500 companies and enable share repurchases, positioning ConocoPhillips for strong total returns [9].

Core Viewpoint - Occidental Petroleum Inc. is currently experiencing a stock price of $39.23, reflecting a 0.80% increase in the current market session, but has seen a decline of 2.62% over the past month and 11.01% over the past year [1] Group 1: P/E Ratio Analysis - The P/E ratio is a critical metric for long-term shareholders to evaluate the company's market performance against historical earnings and industry standards [5] - Occidental Petroleum has a P/E ratio of 28.62, which is higher than the industry average P/E ratio of 16.74 in the Oil, Gas & Consumable Fuels sector [6] - A higher P/E ratio may suggest that shareholders expect better performance from Occidental Petroleum compared to its industry peers, but it could also indicate that the stock is overvalued [6] Group 2: Limitations of P/E Ratio - While a lower P/E ratio can indicate potential undervaluation, it may also reflect a lack of expected future growth from the company [9] - The P/E ratio should not be analyzed in isolation; other factors such as industry trends and business cycles also significantly influence stock prices [10] - Investors are advised to consider the P/E ratio alongside other financial metrics and qualitative analyses for informed investment decisions [10]

Core Insights - Retirement planning is complex and requires careful consideration to ensure success [1] - The Retirement Forum offers actionable ideas, a high-yield safe retirement portfolio, and macroeconomic outlooks to help maximize capital and income [1][2] Group 1: Retirement Portfolio Strategies - The Value Portfolio focuses on building retirement portfolios using a fact-based research strategy that includes extensive analysis of 10Ks, analyst commentary, market reports, and investor presentations [2] - The leader of The Retirement Forum invests real money in the stocks recommended, emphasizing a hands-on approach to investment [2] Group 2: Features of The Retirement Forum - The Retirement Forum includes model portfolios, macroeconomic overviews, in-depth company analysis, and retirement planning information [2]

Core Viewpoint - Occidental Petroleum is a leading diversified energy company and a top holding of Berkshire Hathaway due to its high-quality operations and management team [1] Performance Analysis - Over the past five years, Occidental Petroleum has outperformed the S&P 500 with a return of 109.7% compared to the S&P 500's 86.9% [4] - In the last year, Occidental's stock has declined by 14.3%, and its total return with reinvested dividends has decreased by 15.6% [4] - The company's stock performance has been influenced by crude oil prices, which have fallen 17.5% this year and over 22% in the past three years, while WTI prices have increased nearly 25% over the last five years [5] Strategic Moves - Occidental has benefited from Berkshire Hathaway's purchases since early 2022 and has focused on debt reduction following its 2019 acquisition of Anadarko Petroleum [6] - The company has sold non-core assets, including its chemicals subsidiary OxyChem in a $9.7 billion deal, to reduce debt and strengthen its balance sheet [7] - The acquisition of CrownRock has enhanced Occidental's upstream oil and gas portfolio, providing over 20 years of low-cost resources [8] Future Growth Potential - Occidental is investing in a lower-carbon energy platform, focusing on carbon capture and storage, and is starting its first direct air capture unit [9] - The company's strategic improvements and growth initiatives could enable it to continue delivering market-beating returns in the future, contingent on favorable oil prices [10]

Core Viewpoint - Occidental Petroleum Corporation (NYSE:OXY) is recognized as one of the best blue-chip stocks to buy under $50, indicating its potential for stable investment opportunities [1] Group 1: Analyst Ratings and Price Targets - BofA analyst Jean Ann Salisbury has reduced the price target for Occidental Petroleum from $45 to $44 while maintaining a Neutral rating on the stock [2] Group 2: Strategic Developments - Berkshire Hathaway has agreed to purchase Occidental's chemical division, OxyChem, for $9.7 billion in cash, which is expected to enhance Occidental's financial position [3] - CEO Vicki Hollub stated that the sale of OxyChem is a significant part of the company's strategic shift, aimed at strengthening the balance sheet, increasing shareholder returns, and allocating capital for high-return projects in oil and gas operations [4] Group 3: Company Overview - Occidental Petroleum operates primarily in the United States, the Middle East, and North Africa, positioning itself as a major player in the global energy sector [4]

Core Viewpoint - Occidental Petroleum (OXY) attracted significant investor interest after Warren Buffett initiated a position in 2022, leading to a sharp increase in share price to $75 per share before it returned to similar price levels [1] Group 1: Company Performance - The share price of Occidental Petroleum initially rose sharply to $75 per share following Warren Buffett's investment but has since returned to similar price levels [1] Group 2: Analyst Background - The analyst has over a decade of experience in financial markets, primarily in a hedge fund, focusing on sectors like technology, particularly SaaS and cloud businesses, which are seen as offering substantial growth opportunities [1]

Group 1 - The analyst has over 10 years of experience researching more than 1000 companies across various sectors including commodities and technology [1] - The focus has shifted from writing a blog to creating a value investing-focused YouTube channel, covering hundreds of companies [1] - The analyst expresses a preference for metals and mining stocks but is also knowledgeable in consumer discretionary, staples, REITs, and utilities [1]