TLDR
- OXY stock climbed 16.9% during February, propelled by advancing oil prices and impressive Q4 earnings
- WTI crude advanced 2.8% in February to reach $67/barrel; early March saw an additional 10% surge past $73
- Q4 EPS reached $0.31, approaching double the analyst consensus forecast of $0.17
- Occidental increased its quarterly dividend from $0.24 to $0.26 per share, delivering ~1.9% yield
- Regal Partners Ltd established a fresh $6.62M position in OXY; institutional ownership stands at 88.7%
OXY experienced a substantial 17% gain throughout February as crude prices advanced and the company delivered outstanding Q4 earnings results. The upward momentum extended into March, with shares adding another 4% during early trading.
Occidental Petroleum Corporation, OXY
WTI crude advanced 2.8% during February, finishing just above $67 per barrel — marking its strongest close since early August. Brent crude increased 2.5%, reaching approximately $72.50 per barrel.
The upward movement stemmed largely from escalating tensions between the U.S. and Iran. These tensions intensified during early March when the U.S. and Israel conducted strikes against Iran, prompting retaliatory attacks on oil tankers in the Persian Gulf.
Following these developments, WTI has gained an additional 10% in March, surpassing $73 per barrel. Brent has jumped nearly 15%, moving past $83 per barrel.
OXY, operating as a major oil producer, gains directly when crude prices advance. Elevated prices translate to increased revenue per barrel extracted.
Strong Q4 Results Added Fuel
Occidental delivered Q4 adjusted EPS of $0.31, approaching double the analyst consensus of $0.17–$0.18. This performance arrived despite oil prices remaining lower throughout the quarter.
CEO Vicki Hollub pointed to operational discipline. The company produced approximately 1.5 million barrels of oil equivalent per day during Q4, exceeding the upper end of its guidance. Outstanding performance in the Permian Basin and the Rockies powered the results.
Revenue totaled $5.11 billion, falling short of analyst projections of $6.02 billion. This represents a 5.2% decline versus the same quarter one year prior, when EPS reached $0.80.
Looking toward 2025, analysts presently project full-year EPS of $3.58.
Occidental increased its quarterly dividend to $0.26 per share, rising from $0.24. The annualized distribution now reaches $1.04, delivering a yield of approximately 1.9%. The dividend becomes payable April 15 to shareholders recorded as of March 10.
Capital Discipline and Debt Management
The company outlined plans to reduce capital spending to $5.5–$5.9 billion this year — representing a $550 million decrease from 2024 at the midpoint. Occidental indicates this efficiency, along with other measures, should produce over $1.2 billion in additional free cash flow at equivalent average oil prices from last year.
With crude prices currently exceeding that benchmark, the realized free cash flow figure may prove higher.
Occidental has pursued active debt management, announcing cash tender offers and consent solicitations on multiple senior notes. The company expanded the aggregate cap on purchases within that initiative.
Director William R. Klesse acquired 5,000 OXY shares on December 16 at $38.98 per share, a $194,900 purchase that brought his total holdings to 218,913 shares.
Regal Partners Ltd revealed a new position of 140,000 shares valued at approximately $6.62 million, establishing OXY as its 29th largest holding at 0.5% of its portfolio.
UBS elevated its OXY price target to $55 and Piper Sandler adjusted theirs to $54, while both maintained neutral ratings. The stock’s consensus analyst rating stands at Hold, with a price target of $51.24.
OXY opened at $54.28 on Friday, approaching its 52-week high of $56.34.
