| Analyzing Occidental Petroleum’s recent stock performance | |
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Occidental Petroleum’s 4Q 2014 earnings: Not all bad news (Part 5 of 5) (Continued from Part 4) OXY’s stock performance
Following Occidental Petroleum’s (OXY) 4Q 2014 earnings, its stock slightly jumped, by 2%. This is thanks to its beating earnings, its comfortable cash position, and its lower expenditures.
In the graph above, we compare Occidental’s stock returns from September 2014 to present with its peers’. We note that all the stocks started declining in September, when oil prices started falling. Occidental, in particular, has had similar returns to ConocoPhillips (COP) as well as the Energy Select Sector SPDR ETF (XLE).
Apache (APA) and Anadarko Petroleum (APC) have underperformed both the XLE and Occidental. All oil stocks continue to offer negative returns.
The last quarter was particularly rough on energy companies. But it wasn’t all bad news for Occidental. The company has a comfortable cash position, and its debt-to-capitalization ratio was a comfortable 19%. With modest debt and robust cash levels, the company can leverage its balance sheet to buy weaker assets for cheap if the energy market continues to nosedive. Concurrently, Occidental can also buy back shares, given that prices have declined significantly compared to the previous year.
However, if oil prices don’t recover—given the company’s plans to increase its production—they could hurt the company’s cash flows.
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Occidental Petroleum est une société de production minière de pétrole basée aux Etats-Unis D'Amerique. Occidental Petroleum est cotée aux Etats-Unis D'Amerique. Sa capitalisation boursière aujourd'hui est 51,8 milliards US$ (48,4 milliards €). La valeur de son action a atteint son plus haut niveau récent le 16 mars 2012 à 99,99 US$, et son plus bas niveau récent le 16 octobre 2020 à 10,00 US$. Occidental Petroleum possède 764 580 032 actions en circulation. |