Occidental Petroleum: The Advantages Of Leverage (NYSE:OXY)


Occidental Petroleum (NYSE:OXY) took full advantage of financial leverage through the acquisition of Anadarko. At first, this looked like an unmitigated disaster in fiscal year 2020 as oil prices went negative. Then it looked absolutely brilliant as oil prices careened past $100 a barrel. Now it is time to look at the long-term knowing that the industry is very volatile, and the visibility is poor. That long-term outlook is darn good as the industry continues to make amazing technology strides to drop costs and bring more acreage into Tier 1 territory. That makes the acquisition more valuable over time because more oil (and other products) will be extracted for each new well drilled than was anticipated at the time of the acquisition.

Wells Drilled

Occidental Petroleum Well Improvement Results (Occidental Petroleum Second Quarter 2023, Earnings Conference Call Slides)

Occidental Petroleum DJ Basin Well Improvement Performance (Occidental Petroleum Second Quarter 2023, Earnings Conference Call Slides)

Implied Progress Strategy

Occidental Summary Of Second Quarter Results (Occidental Petroleum Corporate Presentation Second Quarter 2023)

Key Takeaways

This article was originally published by a seekingalpha.com . Read the Original article here. .