Key Takeaways
- Occidental stock climbed 16.9% during February, boosted by increasing crude oil prices and robust Q4 financial performance
- WTI crude oil increased 2.8% in February reaching $67/barrel; by early March it jumped an additional 10% above $73
- Fourth quarter earnings per share reached $0.31, significantly outpacing analyst predictions of $0.17
- The company increased its quarterly dividend payment from $0.24 to $0.26 per share, offering approximately 1.9% yield
- Regal Partners Ltd established a fresh $6.62M position in OXY; institutional ownership stands at 88.7%
Occidental Petroleum experienced a substantial rally of nearly 17% throughout February, propelled by strengthening oil markets and exceptional fourth-quarter financial results. This upward momentum has extended into March, with shares gaining an additional 4% in the month’s opening days.
Occidental Petroleum Corporation, OXY
West Texas Intermediate crude advanced 2.8% during February, finishing just above $67 per barrel — marking its strongest close since the beginning of August. Brent crude increased 2.5%, ending near $72.50 per barrel.
The rally was primarily driven by escalating geopolitical tensions involving the United States and Iran. These tensions intensified in early March following coordinated U.S. and Israeli military strikes against Iran, which retaliated by targeting oil tankers navigating the Persian Gulf.
Following these developments, WTI has rallied an additional 10% in March, surpassing $73 per barrel. Brent has experienced an even sharper increase of nearly 15%, pushing past $83 per barrel.
As a significant oil producer, OXY stands to benefit considerably from rising crude prices. Elevated price levels translate directly into increased revenue for every barrel extracted.
Impressive Fourth Quarter Performance
Occidental announced adjusted Q4 earnings per share of $0.31, substantially exceeding the analyst consensus range of $0.17–$0.18. This impressive performance came despite lower average oil prices throughout the quarter.
Chief Executive Vicki Hollub attributed the results to disciplined operations. The company’s production reached approximately 1.5 million barrels of oil equivalent daily during Q4, surpassing the upper limit of management’s guidance. Exceptional results from the Permian Basin and Rocky Mountain operations powered this outperformance.
Quarterly revenue totaled $5.11 billion, falling short of analyst projections of $6.02 billion. This represents a 5.2% decline versus the prior-year period, when EPS was $0.80.
Looking ahead to 2025, Wall Street analysts are currently projecting full-year earnings per share of $3.58.
The company also announced an increase to its quarterly dividend, raising it to $0.26 per share from $0.24. On an annualized basis, the payout now totals $1.04, delivering a yield of approximately 1.9%. The dividend will be distributed on April 15 to shareholders of record as of March 10.
Financial Discipline and Balance Sheet Optimization
Management unveiled plans to reduce capital expenditures to $5.5–$5.9 billion for the current year — representing a $550 million decrease from 2024 at the midpoint estimate. The company projects this improved efficiency, along with other initiatives, will generate more than $1.2 billion in additional free cash flow assuming equivalent average oil prices to last year.
Given that current crude prices significantly exceed that baseline assumption, actual free cash flow generation could prove substantially higher.
Occidental has been proactively managing its debt profile, announcing cash tender offers and consent solicitations covering multiple series of senior notes. The company expanded the aggregate purchase limit as part of these refinancing efforts.
Board member William R. Klesse purchased 5,000 OXY shares on December 16 at $38.98 each, a transaction valued at $194,900 that brought his total holdings to 218,913 shares.
Regal Partners Ltd revealed a newly established position comprising 140,000 shares worth approximately $6.62 million, positioning OXY as the firm’s 29th largest holding representing 0.5% of total portfolio assets.
UBS analysts elevated their OXY price target to $55 while Piper Sandler adjusted theirs to $54, though both firms maintained neutral ratings. The consensus analyst rating remains at Hold, with an average price target of $51.24.
OXY shares opened at $54.28 on Friday, approaching the 52-week high of $56.34.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
