Occidental Petroleum (OXY) Stock Review

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Occidental Petroleum is an American oil and gas company that is organized in Delaware and headquartered in Houston, Texas. The company is engaged in hydrocarbon exploration in the United States, as well as in petrochemical manufacturing in the United States. It also has a marketing and midstream segment.

Occidental’s chemical activities
Occidental Petroleum Corporation is a United States-based company engaged in oil and gas exploration, production, and transportation in the United States and Latin America. Its main operations are in California, North Dakota, Texas, and the Middle East. In the Permian Basin, it is the largest producer of oil and natural gas.

The company also has a chemical subsidiary, Occidental Chemical Corporation, based in Dallas, Texas. The company manufactures basic chemicals and vinyls, including caustic soda and vinyl chloride resins. The company also markets chlorine, sodium silicates, potassium chemicals, and chlorinated organics.

In 1973, Occidental expanded its operations into the North Sea. In 2006, it had interest in Block 15 in the Ecuadorian Amazon. It also had a production-sharing contract for the Mukhaizna Field, one of the largest gas fields in Oman. It also has a 30-year joint venture with the State Oil Company of Iraq.

The company has production assets in Argentina, South America, and the Middle East. It also has oil and gas deposits in North Dakota, California, and Colorado.

Occidental’s midstream and marketing segment
Occidental’s Midstream and Marketing segment maximizes the value of oil and gas. This segment gathers, transports, stores, and processes natural gas and crude oil. It also provides legal and regulatory support. It also invests in other companies that engage in similar activities.

This segment’s revenue increased 46% in Q3 2020 compared to Q2 2020. Its capital expenditures to depreciation ratio declined from 2020 to 2021. Its total revenue was $2.99 billion in Q3 2020. Its total production was 736 million barrels of oil equivalent per day in the third quarter.

Occidental’s Midstream and Marketing segment owns gathering lines, natural gas plants, and gas plants. It also invests in storage facilities. Its marketing arm purchases barrels from other Permian shale producers. It also buys barrels from companies that sell their crude oil through pipelines. It has access to export terminals.

Occidental’s midstream and marketing segment was able to increase profits 17-fold in 2018. This segment generated more than a half-billion dollars in profit in 2018. This segment’s profit was driven by the Occidental marketing arm’s acquisition of barrels from other Permian shale producers. This segment’s earnings were also boosted by Occidental moving crude oil from the Permian to the Gulf Coast.

Its projects in the Middle East
Occidental Petroleum Corporation has been an active participant in the Middle East for over 40 years. The company has major operations in the region, including Oman, Bahrain, Qatar, Saudi Arabia and Yemen. In addition to producing oil and gas, Occidental is also involved in other projects.

Occidental Petroleum is in talks to sell a $3 billion stake in the Shah natural gas project in the UAE. This project is part of the development of the Shah Gas Field, which is the largest gas deposit in the Middle East. The company holds a 24.5 percent interest in the project.

Occidental Petroleum also holds a 40 percent interest in a joint venture that is developing the Bab sour gas field in Abu Dhabi. This project is expected to produce about 1,000 million standard cubic feet of sour gas when fully operational.

Occidental Petroleum is also a partner in the Zubair field in Iraq. The company is in discussions to buy a stake in oil and gas interests in Ghana and Algeria. The company also holds interests in three oil fields in Oman.

Its share price has decreased by more than 70 percent
Occidental Petroleum (OXY) has a history of delivering peer leading well performance. It pumps 1.4 million barrels of oil a day. It has also been investing in carbon capture, which helps amplify oil production. The company plans to build 70 direct air capture plants around the world by 2035. This is viewed as a way to reach net zero emissions targets. Its carbon capture investments have been cited as a potential growth opportunity by JPMorgan and Goldman Sachs.

In May, Occidental filed a federal report that indicated its financial condition was highly dependent on oil and gas prices. The company also said that it was planning to spend 5% of its capital expenditures on a new plant in the Permian Basin. The plant is expected to cost between $800 million and $1 billion. Occidental expects to spend $100 million to $300 million on the plant in 2022. It expects spending to rise to the mid-$800 million range in 2021, but it is unclear how much production will be affected.

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