Company Overview
Occidental Petroleum Corporation operates as a comprehensive entity engaged in the acquisition, exploration, and development of oil and gas properties across both the United States and international markets. The company functions within the Energy sector, specifically serving the Oil & Gas E&P industry, which encompasses the full spectrum of upstream hydrocarbon extraction activities. This operational scope is supported by a workforce of 10,412 employees who facilitate activities through its distinct Oil and Gas and Midstream and Marketing segments. With a market capitalization of $64.78B and annual revenue reaching $21.59B, the company maintains a significant scale within the global energy landscape. These valuation and revenue figures indicate that Occidental Petroleum Corporation is a substantial market participant capable of influencing commodity pricing dynamics and possessing the capital infrastructure required for extensive upstream operations.
Financial Health
The company reported revenue of $21.59B for the trailing twelve months, generating net income of $1.35B and EBITDA of $11.26B during the same period. The substantial gap between revenue and net income reveals a cost structure where operating expenses, including depletion, depreciation, and amortization, consume a significant portion of gross receipts before arriving at the bottom line. Free cash flow stands at $2.05B, which provides the company with essential financial flexibility to fund capital expenditures, service debt obligations, and potentially return capital to shareholders without compromising operational liquidity. Profitability is reflected across three distinct margins: a gross margin of 69.8%, an operating margin of 10.3%, and a profit margin of 10.8%. The high gross margin suggests efficient production costs relative to realized commodity prices, while the operating and profit margins indicate the extent of overhead absorption and final tax impacts. On the balance sheet, cash holdings of $1.97B are compared against total debt of $23.35B, resulting in a debt-to-equity ratio of 63.80%. This leverage profile indicates a capital structure that relies heavily on borrowed funds to finance operations and growth, rather than maintaining a conservative, cash-heavy stance. Liquidity constraints are highlighted by a current ratio of 0.94, suggesting that current assets are insufficient to cover current liabilities without relying on external financing or asset sales. Return on Equity is recorded at 5.9%, while Return on Assets sits at 2.7%, metrics that reveal management's effectiveness in generating returns relative to the capital invested and the total asset base utilized.
Valuation Assessment
Valuation metrics present a trailing P/E ratio of 48.39 and a forward P/E of 22.38, a disparity that implies the market expects a significant contraction in earnings per share or a correction in valuation multiples as the forward estimate is much lower than the historical average. The price-to-book ratio is 2.32, indicating that the stock trades at a market premium of more than double its book value, which often reflects intangible assets or growth expectations not captured on the balance sheet. Alternative valuation measures include a price-to-sales ratio of 3.00 and an EV/EBITDA of 8.41, suggesting that the company is valued based on its sales volume and enterprise earnings power rather than just net income. Historical price volatility is defined by a 52-week high of $66.00 and a 52-week low of $34.78, placing the current trading price at a specific point within this wide range that reflects recent market sentiment. The stock exhibits a beta of 0.35, which signifies that its price movements are substantially less volatile than the broader market, offering a lower sensitivity to general equity market fluctuations compared to typical large-cap peers.
Growth & Income
Revenue growth for the trailing twelve months is reported at 148.9%, while earnings growth is listed as N/A, indicating that the data source does not provide year-over-year earnings expansion figures for comparison. In the absence of specific earnings growth data relative to revenue, the massive revenue increase suggests a primary driver of expansion through volume, acquisition, or price realization rather than pure margin compression. As a dividend payer, the company offers a dividend yield of 1.6% with a payout ratio of 71.1%, a figure that requires scrutiny as it consumes a majority of the reported net income, potentially limiting flexibility if earnings were to decline in the future. The overall growth and income profile is characterized by exceptional revenue expansion paired with a dividend policy that demands careful monitoring regarding the sustainability of the payout relative to the company's cash generation capabilities.