Occidental Petroleum Corporation
OXYOccidental Petroleum is a yield-style energy company designed to convert commodity cycles into durable free cash flow over time.
Because in a volatile industry, cash discipline is the difference between survival and ruin.
Business Model
Drill, produce, and sell energy
It extracts oil and gas, sells them at market prices, and reinvests heavily to sustain production.
Economic Engine
High cash generation
Free cash flow equals 1.73 times net income, showing strong cash conversion.
Long-Term Lens
Commodity resilience
The key question is whether oil and gas demand stays durable for the next 20 years.
BinaPrint Snapshot
Style
Harvest
Fitness
Mixed
Updated Mar 8, 2026
On this page
Company Story
How do Occidental Petroleum Corporation's business model and economics hold up on a closer read?
Start with the business itself, then go one layer deeper into the model, the economics, and the long-term case.
“A cyclical but cash-rich oil producer built to harvest energy demand, not to deliver steady growth.”
What does Occidental Petroleum Corporation actually do?
Occidental Petroleum drills for oil and natural gas and sells them to refiners, utilities, and industrial buyers.
- Explores and develops oil and gas fields, mainly in the United States and Middle East
- Produces crude oil, natural gas liquids, and natural gas
- Operates a chemicals business that makes basic industrial materials
Why it matters
Energy is foundational
Modern economies still rely heavily on oil and gas for transportation, manufacturing, and electricity.
How does Occidental Petroleum Corporation make money?
It sells oil, gas, and chemicals at market prices and keeps the difference after operating and drilling costs.
- Revenue rises and falls with global oil and gas prices
- Operating margin is 17.2 percent, reflecting solid cost control in a cyclical industry
- Gross margin of 33.8 percent shows room to absorb price swings
Economic clue
Cash conversion is strong
Free cash flow is 1.73 times net income, meaning profits turn into real cash.
Why do long-term investors keep Occidental Petroleum Corporation on the radar?
It is built to harvest cash from mature energy assets rather than chase rapid growth.
- Free cash flow margin of 19 percent is high for an oil producer
- No share dilution in the last year protects existing owners
- Heavy capital spending of $6.4 billion sustains future production
Investor takeaway
Cash now over growth later
This is a company designed to generate and manage cash, not to compound revenue at high rates.
Based on company financial statements.
What Could Change The Story
- Faded would move the profile toward Vault.
- Broke would move the profile toward Rift.
Benchmark Comparison
How has Occidental Petroleum Corporation performed against common long-term benchmarks?
Once the business case is clear, compare the stock against broad market and alternative long-term baselines.
$1,735
+73.5% total return
$1,753
+75.3% total return
$2,975
+197.5% total return
$1,393
+39.3% total return
| Asset | Total Return | Dollar Value |
|---|---|---|
| OXY | +73.5% | $1,735 |
| S&P 500 | +75.3% | $1,753 |
| Gold | +197.5% | $2,975 |
| Bitcoin | +39.3% | $1,393 |
From Mar 5, 2021 to Mar 6, 2026. Historical price data based on company financial statements and market indices. Each card uses the same starting amount so the comparison stays apples-to-apples.
Investor Fit
How a first-time investor could frame Occidental Petroleum Corporation
Before going deeper, decide what kind of business this is, what it tends to suit, and what deserves monitoring over time.
This Can Fit If You Want
- Exposure to long-term oil and gas demand
- Strong cash generation in commodity upcycles
- A business focused on harvesting assets rather than aggressive expansion
Be Careful If You Expect
- Steady year-after-year revenue growth
- Immunity from oil price swings
- A technology-style growth story
What To Watch Over Time
- Balance between capital spending and cash returned to investors
- Long-term global oil and gas demand trends
- Debt levels and resilience in low-price environments
BinaPrint Position
Where does Occidental Petroleum Corporation sit on the BinaPrint map right now?
Test whether business quality and financial profile match the company's stated narrative.
Advanced BinaPrint details
Open the axes, investor fit, and risk framing behind this profile.
Key Metrics
Which metrics matter most for Occidental Petroleum Corporation right now?
Three durable business metrics that matter more than day-to-day price moves.
-4.5% average over 5 years
1.1% average over 5 years
33.8% gross margin
| Metric | Value | Context |
|---|---|---|
| Revenue Growth | -4.5% average over 5 years | Shows that the business has been shrinking on average, reflecting commodity cycles. |
| EPS Growth | 1.1% average over 5 years | Shows that earnings per share have barely grown over time. |
| Margin Quality | 33.8% gross margin | Shows the company has room to stay profitable even in a cyclical industry. |
Based on company financial statements.
Fundamentals
What do Occidental Petroleum Corporation's fundamentals say right now?
Core financial markers that explain how the business is performing beneath the stock price.
9.9% ROIC
33.8% gross margin
19.0% FCF margin
Stable to shrinking
| Metric | Value | Interpretation |
|---|---|---|
| Capital Efficiency | 9.9% ROIC | The business is currently showing poor capital efficiency. |
| Profitability | 33.8% gross margin | Healthy gross margins give the company room to invest, price competitively, and absorb shocks. |
| Cash Generation | 19.0% FCF margin | Free cash flow margin shows how much real cash the business keeps after funding operations and investment. |
| Ownership Trend | Stable to shrinking | The company is not currently diluting owners and may be buying back shares instead. |
Based on company financial statements.
Included In Funds
Which ETFs and funds currently hold Occidental Petroleum Corporation?
Occidental Petroleum Corporation currently appears in these ETF and fund proxies.
SPY
SPDR S&P 500 ETF Trust
IWB
iShares Russell 1000 ETF
Questions & Answers
What questions come up most often about Occidental Petroleum Corporation?
Company-specific questions readers often ask about Occidental Petroleum Corporation.
Each entry answers a direct question about the business, the long-term thesis, or the risks that matter over time.
Occidental Petroleum explores for, produces, and sells crude oil and natural gas, and also operates a chemicals business.
Decision Framing
Secondary context after the long-term thesis
Shorter-horizon context and comparison tools, after the core long-term read.
Shorter-horizon price moves, two-sided debate, and comparison tools live here so the page stays anchored on business quality, durability, and BinaPrint fit first.
Investment Thesis
Bull vs Bear
Two-sided framing before any decision.
Current argument weight is balanced.
Bull case
What can work
Global oil and gas remain critical to transportation, petrochemicals, and heavy industry, supporting demand even as renewables grow.
Strong cash conversion, with free cash flow at 1.73 times net income, provides resilience and flexibility in downturns.
Expanding margins suggest operational discipline that could compound value if maintained over multiple cycles.
Scale and established reserves create barriers to entry, as new competitors cannot easily replicate decades of accumulated acreage.
Bear case
What can break
A sustained global shift to electric vehicles and renewable energy could structurally reduce oil demand over 20 years.
Carbon taxes or stricter environmental regulations could raise costs and compress margins permanently.
Oil price volatility can destroy profitability, as seen in the 20.3 percent revenue drop year over year.
High capital intensity means misjudging long-term demand can lead to stranded assets and weak returns on invested capital.
Risk Radar
Key Risks
Where downside pressure can build.
Commodity price risk, with revenue down 20.3 percent year over year due largely to price swings
Capital intensity, $6.4 billion in annual capital spending required to sustain production
Profit volatility, earnings per share down 34.7 percent year over year
Pressure points
Concentration risk
Occidental is heavily tied to oil and gas production, which drives the majority of revenue and profit. This means performance is closely linked to global energy prices and demand trends rather than diversified end markets.
Sizing matters
Risks should be read as scenario inputs, not certainties. Position size and time horizon determine how much of this downside profile is acceptable.
Market Snapshot
Tactical context after the core long-term read.
- Price
- $54.19
- Daily move
- +1.78%
Peer Set
A compact peer list for side-by-side context.
Next Actions
Explore planning scenarios or keep browsing similar companies.