Occidental: Cost Reduction Driving Value Growth, But Oil Outlook Uncertain

Summary:

• Occidental’s extensive Delaware basin acreage and cost-cutting potential position it for long-term growth.
• Occidental can replace reserves at a low cost and is able to leverage existing infrastructure investments.
• Recent financial performance is strong, but the near-term outlook is cautious due to oil price volatility.
• Occidental stock remains a cautious buy, with a recommendation to hold and potentially add to positions during bearish oil price outlooks.

Occidental (NYSE:OXY) is unlike any other oil company and for this reason, it is broadly misunderstood and undervalued. Their extensive Delaware basin acreage is the reason why. While others also produce in the basin, Occidental has the largest

Analyst’s Disclosure: I/we have a beneficial long position in the shares of OXY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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