Occidental Petroleum Corporation Stock Forecast 2024: A Comprehensive Analysis

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Occidental Petroleum Corporation, known commonly as OXY, stands as a significant player in the oil and gas sector. Established in 1920, the company has a rich history in the exploration, development, and production of oil and gas properties. Its operations span the United States, the Middle East, North Africa, and Latin America, diversifying its portfolio and broadening its global footprint.

OXY operates through three primary segments: Oil and Gas, Chemical, and Midstream and Marketing. The Oil and Gas segment is the backbone of the company, focusing on the exploration and production of oil, natural gas liquids (NGLs), and natural gas. The Chemical segment contributes significantly by manufacturing and marketing basic chemicals, key among them being chlorine and caustic soda. Lastly, the Midstream and Marketing segment adds a critical dimension by handling the logistics and sale of the company’s products.

Recent Performance and Current Stock Analysis

As we usher in 2024, Occidental Petroleum’s stock performance reflects a blend of stability and responsiveness to market changes. As of the latest data, the stock price hovers around $58.06, showing a modest change from its previous close. This level of activity is within a 52-week range of $55.12 to $67.93, indicating notable fluctuations over the past year. Such movement is typical in the energy sector, influenced by various external factors like global oil prices and geopolitical events.

The trading volume of Occidental Petroleum’s stock stands at approximately 11,245,966, demonstrating active trading in the market. This figure, coupled with a market capitalization of around $50.952 billion, underscores OXY’s significance in the oil and gas industry and the broader stock market. A higher market cap often suggests a company with a more significant presence and influence in its sector.

In analyzing the stock price, it’s vital to consider the beta value, which for OXY is 1.64. This figure indicates that the stock is more volatile than the market, a common trait in the energy sector due to its sensitivity to oil prices and global economic conditions. Despite this volatility, the company’s P/E ratio stands at 12.65, suggesting a reasonable valuation relative to its earnings.

Investors closely monitor dividend yields as a sign of a company’s financial health and its commitment to returning value to shareholders. OXY’s forward dividend yield is 1.24%, with an ex-dividend date set for December 7, 2023. This yield, while modest, is a crucial aspect for income-focused investors. The next earnings date is scheduled for February 14, 2024, which will provide further insights into the company’s financial performance and future outlook.

Expert Forecasts and Price Targets for 2024

Occidental Petroleum’s stock has attracted a diverse range of analyst ratings, with the consensus tilting towards a “Hold” rating. The average twelve-month price target among 17 analysts is $70.41, which presents a potential upside from the current price. The highest target set by the analysts is $82.00, representing a significant growth potential. In contrast, the lowest price target stands at $59.00, suggesting a cautious outlook from some analysts.

The varied analyst forecasts for OXY stock in 2024 stem from multiple factors, including global oil price trends, company performance, and market dynamics. Analysts weigh these factors to provide investors with guidance on potential stock performance. As such, these price targets are not only indicators of expected performance but also reflect the broader economic and industry-specific trends impacting the company.

Investors considering OXY stock should interpret these forecasts in the context of their investment strategies and risk tolerance. The range of analyst opinions highlights the importance of a balanced view when evaluating potential investments, especially in a sector as dynamic as oil and gas.

Key Factors Influencing OXY’s Stock Value

1. Strategic Acquisitions and Focus on Technology: Occidental Petroleum’s acquisition of Carbon Engineering Ltd. through its subsidiary 1PointFive is a significant move, positioning the company in the Direct Air Capture (DAC) technology space. This $1.1 billion acquisition is set to enhance Occidental’s low carbon ventures, potentially opening up new revenue streams through technology licensing and royalties. The aim to cut DAC costs by 50% by 2030 marks a significant step in their environmental initiatives, likely influencing investor perception positively.

2. Debt Reduction and Shareholder Returns: Occidental has shown remarkable progress in managing its debt, reducing it significantly from $38.5 billion in 2019 to $18.6 billion as of September 2023. The company’s focus on decreasing debt, particularly following the CrownRock acquisition, aligns with its strategy of boosting shareholder value. This is evident in their financial maneuvers, where they have utilized their free cash flow effectively – repaying debt, buying back shares, and paying dividends. Such fiscal responsibility can be a strong signal to investors about the company’s stability and long-term prospects.

3. Warren Buffett’s Increased Investment: Warren Buffett’s Berkshire Hathaway has upped its stake in Occidental to 34%, a move that highlights the investor’s confidence in the company. Buffett’s ongoing support and investment in Occidental, especially during a phase of strategic growth and debt management, could be a significant factor in boosting investor confidence.

4. Earnings Estimates and Financial Health: Zacks.com notes that Occidental is a trending stock, with its shares returning +7.3% over a month. For the current quarter, Occidental is expected to post earnings of $1.10 per share, a change of -31.7% from the year-ago quarter. The consensus earnings estimate for the current fiscal year is $4.07, indicating a -56.5% change from the previous year. Such figures are crucial in determining investor sentiment as they reflect the company’s profitability and growth prospects.

5. Revenue Growth Forecast: Revenue growth is a critical factor for Occidental’s financial health. The current quarter sales estimate of $7.45 billion indicates a year-over-year change of -10.5%. Looking ahead, the estimates for the current and next fiscal years suggest changes of -22.7% and +12.1%, respectively. These figures are vital for investors as they provide insight into the company’s ability to grow and expand its market presence.

6. Market Valuation: Occidental’s valuation in the market is also a key consideration. Its grading of B in terms of value suggests that it is trading at a discount compared to its peers, potentially making it an attractive investment option for those looking for undervalued stocks in the energy sector.

Dividend Analysis and Shareholder Value of Occidental Petroleum (OXY)

Occidental Petroleum’s dividend history and policy play a significant role in its appeal to shareholders. The company has been consistent in paying dividends, reflecting its commitment to returning value to its investors. As of the beginning of 2024, Occidental has set its quarterly dividend at $0.18 per share. The dividend yield stands at approximately 1.24%, with an annual payout of $0.72 per share.

Recent Dividend Changes

Occidental Petroleum’s dividend history shows a mix of stability and adjustments in response to the company’s financial health and market conditions. For instance, there was a notable decrease in the dividend in 2020, followed by gradual increases in subsequent years. This pattern indicates Occidental’s strategic approach to maintaining a balance between rewarding shareholders and ensuring financial stability.

Dividend Sustainability

The dividend payout ratio is a crucial indicator of the sustainability of a company’s dividend. Occidental’s payout ratio is relatively moderate, standing at 15.69%. This ratio suggests that the company retains a substantial portion of its earnings, which could be used for future growth or to cushion against market downturns. The company has also shown a commitment to increasing shareholder value through consistent dividend payments, despite the challenges in the oil and gas sector.

Growth and Profitability Indicators

Occidental’s growth metrics and profitability are important factors in assessing the future sustainability of its dividends. The company has shown good growth potential relative to its competitors, with a notable increase in revenue and earnings over the years. This positive growth trajectory, combined with a solid profitability rank, supports the potential for sustained dividend payments.

Investment Perspective

For investors, Occidental’s dividend policy and history provide insights into the company’s financial health and commitment to shareholder value. The consistent dividend payments, combined with a moderate payout ratio and positive growth prospects, make Occidental a potentially attractive option for those seeking stable dividend income. However, as with any investment, it is crucial to consider broader market conditions and individual financial goals when evaluating dividend stocks.


What is Direct Air Capture (DAC), and why is it important for Occidental Petroleum?

DAC is a technology that removes CO2 from the air, enhancing sustainability and potential revenue for Occidental.

Why is Warren Buffett’s involvement in Occidental Petroleum significant?

Buffett’s Berkshire Hathaway owns 34% of Occidental, indicating confidence in its management and attracting investor interest.

What are Occidental Petroleum’s stock price predictions?

Stock forecasts suggest an average target price of $53.19 for 2024, with potential growth to $66.29 by 2028.

What are the potential benefits of Occidental’s strategic partnerships and acquisitions?What challenges and opportunities does Occidental Petroleum face in the energy sector?

Occidental deals with market volatility, especially oil price fluctuations, while strategically investing in technology and sustainability for future growth.


In summary, Occidental Petroleum (OXY) stands at a pivotal juncture, poised for a promising future. Its strategic acquisitions in environmental technology, such as Direct Air Capture (DAC), highlight a commitment to sustainability and revenue diversification. The reduction of substantial debt, Warren Buffett’s substantial investment, and positive revenue and earnings growth forecasts further bolster Occidental’s appeal. While challenges persist in the energy sector, the company’s balanced approach to traditional operations and forward-looking investments positions it well for long-term success, making it an intriguing prospect for investors seeking a blend of stability and innovation in the evolving energy landscape.

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