OXY

Occidental Petroleum Corp

Energy


Presented:01/27/2017
Price:$68.95
Cap:$52.68B
Current Price:$51.56
Cap:$46.69B

Presented

Date01/27/2017
Price$68.95
Market Cap$52.68B
Ent Value$60.86B
P/E RatioN/A
Book Value$29.18
Div Yield0.03%
Shares O/S764.00M
Ave Daily Vol5,131,228
Short IntN/A

Current

Price$51.56
Market Cap$46.69B
Occidental Petroleum Corp. operates as an international oil and gas exploration and production company. It operates through the following segments: Oil and Gas, Chemical, and Midstream and Marketing. The Oil and Gas segment develops and produces oil and condensate, natural gas liquids, and natural gas. The Chemical segment produces polyvinyl chloride resins, chlorine, and caustic soda-key building blocks. The Midstream and Marketing segment gathers, processes, transports, stores, purchases, and markets hydrocarbons and other commodities. The company was founded in 1920 and is headquartered in Houston, TX.

Publicly traded companies mentioned herein: Chevron Corporation (CVX), Exxon Mobil Corp (XOM), Kinder Morgan Inc (KMI), Occidental Petroleum Corp (OXY), Plains GP Holdings KO (PAGP)

Highlights

The presenter is long shares of Occidental Petroleum (OXY) at $68, and believes the stock is undervalued and should trade up to $81 over the next 12 months. E&P production growth can continue while the company continues to generate a 4% FCF yield, and the recent recovery in caustic prices has been positive as well.

The $13 of upside is a combination of an incremental $4 per share of value for OxyChem (based on 8x EBITDA) and the E&P business being undervalued by $9 per share based on the quality of OXY’s Permian assets and production growth opportunity.

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Idea Discussion

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