“With Oil Prices Soaring, Is Occidental Petroleum Stock a Buy Right Now? | OXY Stock Analysis”
OXY is a buy with low confidence; DCF fair value of $106 vs current $61 implies 73% upside in 18 months.
Occidental Petroleum benefits from high oil prices, but it does not build its long-term success on these high prices. In fact, they do the exact opposite. They are trying to reduce their dependence on high oil prices by achieving a sustainable improvement in cash flow.
The company has outlined a clear roadmap to add $4 billion in sustainable cash flow annually by 2030, and it expects to achieve about 85 % of these improvements even with lower commodity prices.