OXY
Occidental Petroleum Corporation
Industrial/Transportation, Event Driven/Special Sit
09/23/2013
Presented
| Date | 09/17/2013 |
| Price | $89.68 |
| Market Cap | $72.30B |
| Ent Value | $76.91B |
| P/E Ratio | 98.26x |
| Book Value | $45.37 |
| Div Yield | 3.7% |
| Shares O/S | 805.76M |
| Ave Daily Vol | 3,570,000 |
| Short Int | 0.83% |
Current
| Price | $51.56 |
| Market Cap | $46.69B |
| Occidental Petroleum Corporation engages in the exploration and production of oil and gas properties in the United States and internationally. The company operates in three segments: Oil and Gas; Chemical; and Midstream, Marketing and Other. The Oil and Gas segment explores for, develops, and produces oil and condensate, natural gas liquids (NGLs), and natural gas. Its domestic oil and gas operations are located in California, Colorado, Kansas, Montana, New Mexico, North Dakota, Oklahoma, Texas, and West Virginia; and international oil and gas operations are located in Bahrain, Bolivia, Colombia, Iraq, Libya, Oman, Qatar, the United Arab Emirates, and Yemen. As of December 31, 2012, this segment had proved reserves of approximately 3,296 million barrels of oil equivalent. The Chemical segment manufactures and markets basic chemicals, including chlorine, caustic soda, chlorinated organics, potassium chemicals, chlorinated isocyanurates, sodium silicates, calcium chloride, and ethylene dichloride products; vinyls comprising vinyl chloride monomer and polyvinyl chloride; and other chemicals, such as resorcinol. The Midstream, Marketing and Other segment gathers, processes, transports, stores, purchases, and markets oil, condensate, NGLs, natural gas, and carbon dioxide. This segment also trades around its assets consisting of transportation and storage capacity, as well as oil, NGLs, gas, and other commodities; and is involved in the power generation activities. The company was founded in 1920 and is headquartered in Los Angeles, California. |
Highlights
Occidental (OXY) has been a very successful company over decades. However, their corporate practices have always been questioned by investors. The company has had just five CEOs over the past 100 years, and Dr. Ray Irani – who once he passed the company’s mandatory retirement age transitioned from CEO to non-executive Chairman of the company’s Middle East business (May 2011) – is “legendary for being in the top five highest paid CEOs.” Board members have been hand-selected for years, and the average tenure for members of OXY’s board of directors is two decades, and the pay for four the four board meetings per-year is $800k (in total, for all members). Given the incentive structure and pro-CEO compensation attitude, it is not surprising that nothing had changed at OXY for decades. The presenter is long shares of OXY in anticipation of OXY’s new CEO, Steve Chazen, affecting change at OXY over the next 12 months.
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