Should I buy Occidental Petroleum stock in 2025?

What is Occidental Petroleum?

How much is the Occidental Petroleum stock?

The price of Occidental Petroleum stock is rising this week. As of now, OXY trades at $41.46 with a 24-hour gain of $0.34 (+0.83%) and a weekly increase of 2.75%. The company holds a market capitalization of $40.80 billion, with an average three-month volume of 12.87 million shares. Occidental features a P/E Ratio of 16.65, offers a dividend yield of 2.33%, and has a stock beta of 0.81. With moderate volatility and attractive dividend income, OXY stock may appeal to ZA investors seeking energy sector exposure.

Our full analysis on the Occidental Petroleum stock

Having conducted a comprehensive review of Occidental Petroleum Corporation’s latest financial statements and assessed its share price trajectory over the past three years, our proprietary algorithms have synthesized varied streams of market intelligence, close competitor analyses, key financial ratios, and technical signals. This multidimensional approach allows us to deliver an up-to-date, rigorous perspective on the stock’s attractiveness in 2025. Against this backdrop, one key question emerges: could Occidental Petroleum represent a renewed strategic entry point into the energy and resource sector as global dynamics evolve?

Recent Performance and Market Context

Occidental Petroleum (NYSE: OXY) has, in the past year, experienced pronounced volatility—reflecting sector challenges but also setting the stage for a potential meaningful rebound. As of 29 May 2025, the share price stands at $41.46, up 0.83% intraday, and indicating short-term upward momentum with a weekly gain of 2.75%. Despite a 32.17% decline year-on-year and an 18.03% drop over six months, the price now flirts with cycle lows well above the 52-week low of $34.78, suggesting a possible bottoming out.

Recent quarters have provided tangible reasons for optimism. The Q1 2025 results comfortably beat consensus: earnings per share (EPS) came in at $0.87, strongly ahead of analysts’ $0.78 prediction, and revenue likewise topped expectations at $6.84 billion (+4.27% surprise). Occidental continues to generate robust cash flows ($3.0 billion in Q1), further enhanced by asset sales ($1.3 billion in Q1) and accelerated debt repayments ($2.3 billion already year-to-date).

The macroeconomic and sector backdrop is notably constructive for oil majors with technological leadership. After a year of softness in global crude benchmarks, demand is stabilizing, inventories look manageable, and OPEC+ dynamics, along with renewed infrastructure spending, indicate positive tailwinds for US producers. Additionally, Occidental’s technological investments in decarbonisation position it well as energy transition accelerates—a vital theme for both global capital markets and the South African investment community seeking future-ready exposure.

Technical Analysis

A close technical reading of OXY points to a market in transition, with risk skewed progressively to the upside. The current price is tightly aligned with the 20-day moving average ($41.47), forming a potential springboard as it consolidates above recent support. Though still beneath the 50-day and 200-day moving averages ($42.57 and $48.54, respectively), momentum indicators suggest the selling pressure is fading.

• Relative Strength Index (RSI): At 47.46, the RSI sits in neutral territory, neither overbought nor oversold, and historically an RSI near 50 amid a stabilising macro backdrop often precedes trend shifts upward.
• MACD: Marginally negative (0.02), the MACD hints at lingering caution but with a strong base for bullish cross if buying resumes.
• Support and Resistance: Technical support is robust at $40.88 (recent day’s low), while resistance is clustered between $42.53 and $43.58. A breakout in volume above these levels could catalyze a substantial rally, especially as current market structure appears to be forming the classic prerequisites for a reversal pattern.

The technical landscape, in summary, supports the thesis that Occidental Petroleum may be entering a new bullish phase. These signals align constructively with market positioning seen in historical cycles, where similarly deep pullbacks preceded sustained recoveries.

Fundamental Analysis

Occidental Petroleum’s fundamentals remain compelling even after a year of sector correction. On a trailing twelve-month basis, the company generated $27.55 billion in revenue and $2.46 billion in net profit, underscoring operational resilience amid softening hydrocarbon prices.

• Revenue and Profitability: While 2024 topline contracted by 5.4%, and net profit by 35.8% year-on-year, the company’s Q1 2025 beat suggests an inflection point. Asset sales and operational discipline have supported healthy cash flows and allowed continued strategic deleveraging.
• Valuation: OXY trades at 16.65 times trailing earnings (P/E), a modest premium to the broader energy sector but justified by its strong innovation pipeline and carbon capture leadership. Price-to-sales at 1.46 and price-to-book at 1.53 remain attractive, especially considering the quality of Occidental’s reserves and the visibility on future growth.
• Structural Strengths: Occidental maintains a dominant position in the Permian Basin—America's lowest-cost production region. Strategic agreements (e.g., with ADNOC and Sonatrach) and proprietary carbon capture technology bolster both earnings power and ESG credentials, increasingly critical for institutional investors.
• Shareholder Endorsement: High-profile backing by Berkshire Hathaway (28.2% stake) validates the long-term strategy and inspires rare investor confidence.

Occidental’s proven ability to navigate commodity swings and its timely embrace of transition technologies justify renewed interest. The company’s balance of value and future optionality is, in our view, underappreciated at current prices.

Volume and Liquidity

Liquidity indicators further reinforce Occidental’s investment appeal:

• Average daily volume stands at 12.87 million shares (3-month average), supporting tight spreads and facilitating dynamic valuations.
• With nearly 1 billion shares outstanding and a sizeable float, the stock remains accessible to institutional and retail investors alike—often a sign that market confidence is growing, particularly as rebounds gather pace.

High liquidity also supports technical breakouts and allows swift portfolio adjustments, an essential advantage in a volatile energy sector.

Catalysts and Positive Outlook

Looking ahead, multiple near- and medium-term catalysts could ignite significant upside:

• Decarbonisation leadership: With EPA Class VI permits secured for its STRATOS facility and a landmark joint venture in carbon capture with ADNOC, Occidental is uniquely positioned to benefit as regulatory and investor focus intensifies around sustainable energy solutions.
• Permian and International Expansion: Leading acreage in the Permian Basin ensures access to the industry’s lowest production costs. Meanwhile, the memorandum with Sonatrach (Algeria) indicates growing international reach and upstream optionality.
• Financial discipline: Ongoing asset disposals, reinvestment in high-margin projects, and sustained debt reduction enhance balance sheet strength and flexibility.
• Supportive macro context: Rising oil prices, energy infrastructure investment, and increased capital inflows into companies with credible transition stories are likely to favor Occidental through 2025 and beyond.

Analyst consensus currently sets a 12-month price target of $51.06 (+23% upside), with bullish scenarios envisioning a move toward $53.90 (+30%). The convergence of improving operations, sector sentiment, and transformative projects forms a powerful backdrop for renewed institutional engagement.

Investment Strategies

Occidental Petroleum’s equity structure and evolving market context permit tailored entry strategies:

• Short-term positioning: Investors seeking tactical exposure may find the current technical low, near long-term support ($40.88), an appealing entry point—especially as upcoming catalysts (e.g., ex-dividend date on 10 June 2025 and potential news on carbon ventures) could fuel momentum.
• Medium-term exposure: With analyst consensus projecting substantial upside, a medium-horizon strategy enables participation in the company’s operational turnaround and the unlocking of value from new joint ventures, asset rationalisations, and strengthening commodity prices.
• Long-term accumulation: For those with a multi-year horizon, Occidental’s formidable Permian asset base, proven management, and ongoing industry innovation provide a foundation for compounding returns. The 2.33% dividend yield offers an additional income stream, hedging downside risk while capitalizing on industry reforms and energy transition opportunities.

Occidental’s high institutional ownership—including the hallmark Berkshire Hathaway support—further underpins strategic accumulation at these levels.

Is it the Right Time to Buy Occidental Petroleum?

• Technically, a base appears to be forming at strong support levels, reinforced by neutral momentum indicators and rising short-term volume.
• Fundamentally, the business is restoring profitability and cash flow resilience, with surplus capital being deployed into value-accretive projects and disciplined deleveraging.
• Strategically, leadership in carbon capture and top-tier Permian operations provide structural tailwinds that are highly prized by global investors—particularly as decarbonisation and responsible energy production move to the strategic forefront.
• The 12-month analyst target implies a meaningful upside from current levels, while the strong institutional backing by Berkshire Hathaway lends unique credibility.

For South African and global investors seeking robust USD-diversified exposure in the evolving energy landscape, Occidental Petroleum seems to represent an excellent opportunity. The convergence of improving financials, sector leadership, and powerful catalysts justify renewed interest in the stock at this juncture.

Occidental Petroleum looks poised to enter a new bullish phase—a compelling narrative in an often unpredictable energy market, and one that should be seriously considered when constructing a forward-looking investment portfolio.

How to buy Occidental Petroleum stock in South Africa?

Buying shares of Occidental Petroleum (OXY) online is both straightforward and secure for investors in South Africa, provided you use a regulated broker. You can invest directly in Occidental Petroleum by purchasing the actual shares (spot buying), or opt for Contracts for Difference (CFDs) to benefit from price movements with added leverage. Each method has its own advantages, fees, and risks. To help you make the best choice for your needs, a detailed broker comparison is available further down the page.

Spot buying

A cash (spot) purchase means you buy Occidental Petroleum shares outright via your broker. These shares will be registered in your name or held on your behalf, making you eligible for dividends and voting rights. South African online brokers usually charge a fixed commission per trade, often starting at around R100 to R200 per order (or approximately $5 to $10 USD, depending on the platform). Local currency conversions may apply if funding in ZAR.

Informations importantes

Example: If the Occidental Petroleum share price is $41.46 and you invest $1,000 (approx. R18,500), after deducting a $5 brokerage fee, you can buy about 24 shares ($995 / $41.46 ≈ 24 shares).
✔️ Gain scenario: If the share price rises by 10% to $45.61, your shares would be worth $1,100.
Result: +$100 gross gain, or +10% on your investment (excluding currency fees and potential South African/US taxes).

Trading via CFD

CFDs (Contracts for Difference) let you speculate on Occidental Petroleum share price movements without owning the actual shares. Instead, you agree with the broker to exchange the difference in price from opening to closing the trade. CFDs allow you to use leverage (often up to 5x for US stocks), but they incur a “spread” (the difference between buy and sell price) and daily overnight financing costs if held beyond one day.

Informations importantes

Example: You open a CFD position on Occidental Petroleum shares with 5x leverage, using $1,000 as margin.
This gives you exposure equivalent to $5,000 of shares.
✔️ Gain scenario: If the stock price rises by 8%, your position gains 8% × 5 = 40%.
Result: +$400 gain on a $1,000 deposit (excluding spread and overnight fees).
Caution: Leverage amplifies both gains and potential losses.

Final advice

Before investing online, it’s essential to compare brokers’ fees, platform features, and regulations—costs can vary significantly, especially for US-listed stocks like Occidental Petroleum. The choice between spot share purchases and CFD trading should align with your investment goals, risk profile, and preferred strategy. To assist your decision, a broker comparison tailored for South African investors is provided further down this page.

Our 7 tips for buying Occidental Petroleum stock

The latest news about Occidental Petroleum

Occidental Petroleum stock has risen 2.75% over the last week, signaling renewed investor confidence. This upward movement comes amid overall stability in global energy prices and follows several constructive announcements from management regarding operational efficiency and capital structure. For professional analysts in South Africa, such performance is notable as it reflects robust sentiment toward large-cap energy stocks, which are frequently included in local exchange-traded funds and pension portfolios seeking exposure to dollar-denominated oil & gas players.

The company’s Q1 2025 earnings exceeded expectations, with EPS of $0.87 versus the consensus of $0.78. Occidental Petroleum reported $6.84 billion in quarterly revenue and delivered a 19% positive surprise on earnings. This outperformance underscores strong cost discipline and resilient demand for hydrocarbons, both of which bode well for international investors, including those in South Africa who target U.S.-listed energy securities for diversification and hard currency returns.

Occidental advanced its low-carbon strategy through a new partnership with ADNOC, a key global energy player. The company formalized an agreement with ADNOC’s XRG to explore a direct air capture carbon venture in South Texas. This aligns with global transition priorities and South African interests in climate-aligned investment. The collaboration demonstrates Occidental’s commitment to technological innovation, positioning it as a leader in the energy transition theme that is increasingly relevant to institutional ESG mandates and sustainable finance portfolios within South Africa.

The annual dividend yield stands at 2.33%, with a $0.96 per share payout and an ex-dividend date approaching on June 10, 2025. For South African investors seeking steady income from foreign equities, Occidental’s dividend policy offers attractive yields, reinforced by the company’s ongoing efforts to strengthen its cash generation and reduce debt. The next ex-dividend date provides a timely entry point for yield-focused strategies ahead of the mid-year payout.

Analyst consensus forecasts suggest upside potential of over 23%, with a target price of $51.06 per share. Strong coverage from reputable Wall Street houses, supported by fundamental resilience and Berkshire Hathaway’s 28.2% stake, solidifies analyst conviction in Occidental’s long-term value. For South African market participants, this positive outlook—combined with the company’s recognized leadership in both hydrocarbon production and carbon capture—supports Occidental Petroleum’s continued relevance in global multi-asset portfolios and local fund allocations seeking exposure to high-quality, future-facing energy names.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.