Occidental Petroleum Corporation (NYSE: OXY)


Occidental Petroleum Corporation (NYSE: OXY) is engaged in hydrocarbon exploration and petrochemical manufacturing in the United States. It is organized in Delaware and headquartered in Houston.

Occidental Petroleum Corporation (NYSE: OXY)

Occidental Petroleum Corporation is a US-based energy company that engages in hydrocarbon exploration and production, natural gas gathering and processing, petrochemical manufacturing, and oil and gas marketing in the United States, Latin America, Africa, and the Middle East. It has three business segments: Oil and Gas, Midstream, and Chemical.

The oil and gas segment explores crude oil, manufactures crude and natural gas, and markets them. The midstream segment maximizes the value of the oil and gas produced by the company. The Chemical element manufactures polyvinyl chloride resins, chlorine, and sodium silicates. The company also has basic chemicals such as ethylene dichloride and methylene chloride.

In 1986, Occidental acquired the largest natural gas pipeline in the U.S. and a 78 percent interest in the Elk Hills Naval Petroleum Reserve in Kern County, California. This move helped the company become the state’s largest natural gas producer. The company was also involved in developing the North Sea and acquired several other drilling and refining companies.

Occidental’s net production averaged 1,174 thousand barrels of oil equivalent per day in 2021. As a result, this was a strong year for the company’s free cash flow. In addition, Occidental’s share price rose 142%.

However, petroleum prices are currently at eleven-month lows, hurting Occidental’s profitability. Consequently, the company is considering the sale of select Midcontinent assets. It is also contemplating selling its 35 percent investment in Plains All-American Pipeline, L.P. In addition, Occidental is also looking into selling its minority interest in the Mideast/North Africa operations.

Recent Earnings Per Share (EPS) and the date paid.

Occidental Petroleum (OXY) is expected to announce its first-quarter earnings after the closing bell on Tuesday. The oil and gas exploration and production company has been on a tear in recent quarters, delivering impressive revenue growth. The company estimates it will generate approximately 1.6 million barrels of oil equivalent per day in 2022. The company also recorded the most significant unrestricted cash flow in its history.

Occidental is not the only shale oil and gas stock to post record profits this week. Devon Energy (DVN) and Chevron (CVX) also put up stellar numbers. In the crowded oil and gas stocks arena, Occidental is no longer the least interesting of the lot. Despite the headline-grabbing results, the OXY stock is still trading flat in extended trading hours.

Aside from the usual suspects, other names to watch include Diamondback Energy (DBAC) and EOG Resources (EOG). Diamondback Energy is the hottest stock on the NYSE, and the company reports its second-quarter earnings during the week. The EOG is no slouch, and its third-quarter numbers are a solid bet.

The Occidental has been in the spotlight lately thanks to Warren Buffett’s acquisition of a sizable stake in the company earlier this year. Although its booming revenue growth has been a boon, the company has also been in the news for several other reasons, including its debt-heavy outlook for fiscal 2020.

Occidental Petroleum’s first Direct Air Capture (DAC) plant in the Permian Basin

Occidental Petroleum is preparing to build a large-scale direct air capture (DAC) plant in the Permian Basin of Texas. It’s a huge undertaking and is closely watched by the oil industry. This technology can potentially remove up to 30 million tons of CO2 from the air each year. It will be powered by natural gas and electricity generated from renewable sources.

Occidental, which has its headquarters in Houston, is planning to build two massive industrial projects in Texas. These projects could involve new wind and solar farms, as well as drilling gas wells.

The company has been working on capturing carbon dioxide from the air for several years. It’s partnered with Canadian startup Carbon Engineering Ltd. and will build its first DAC project in West Texas. After that, it plans to scale up to multiple DAC plants and capture millions of tons of carbon dioxide yearly.

Occidental’s first DAC plant is expected to begin operation in late 2024. The project is part of its Low Carbon Ventures business strategy and aims to build a profitable business from underground CO2.

The plant will draw down 500K tons of carbon dioxide per year. It will be constructed in Ector County, Tex., near the company’s infrastructure in the Permian Basin.