Occidental Petroleum Corporation

Occidental Petroleum had a weak financial performance in the last quarter and failed to meet Wall Street expectations with respect to revenues as well as earnings. The company’s performance was decent across U.S. onshore, Gulf of Mexico, and international operations. Midstream business surpassed expectations, and OxyChem delivered decent earnings. Despite the impacts of the winter storm, Elliott, Oil & Gas segments came close to the middle of guidance. Storm effects in the Permian and Rockies were largely countered by superior performance in the Gulf of Mexico and the Al Hosn. While Midstream and marketing earnings were within projections, OxyChem’s performance exceeded expectations due to stronger-than-anticipated market dynamics. Besides, the company participated in the recapitalization of NET Power. This technology creates emission-free power generation with the potential to speed up efforts to reduce emissions in their current operations and to provide electricity to their direct air capture facilities and sequestration centers. NET Power may also be a significant source of emission-free electricity anywhere with access to natural gas. The company intends to invest in several distinctive and alluring Low Carbon company prospects in 2023 to advance its net zero roadmaps. They anticipate making investments in their direct air capture facility in the Permian and the growth of their sizable Gulf Coast sequestration hubs, including pore space certification. We give Occidental Petroleum Corporation a ‘Hold’ rating with a revised target price.