Occidental: Foggy Outlook And Overvaluation

Summary:

• OXY’s market cap is highly correlated with crude oil prices, which are expected to soften in 2025 due to increased supply and slower demand growth.
• The company’s recent acquisition of CrownRock and increased debt may not yield expected synergies, reducing financial flexibility and limiting dividend growth potential.
• Considering all the negatives, I believe the stock does not justify a premium over its fair value of $44 per share.

Introduction

Today I want to talk about an oil and gas heavyweight, Occidental Petroleum (NYSE:OXY). There has been a lot of hype around the stock over the last few years because the legendary Warren Buffett has been buying

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