OXY is a macro supporter name as geopolitics heat up across the world
Occidental Petroleum $Occidental Petroleum(OXY.US$reported Q4 earnings of $1.61 per share, representing a 9% decrease YoY, and a miss of $0.22 relative to Wall Street estimates. However, revenue increased by 4% to $8.22 billion. Occidental Petroleum also announced that it would return $3 billion to shareholders through share buybacks in 2023, in addition to increasing its dividend by 38%. The company's CEO, Vicki Hollub, stated that the company had achieved operational records across its U.S. Onshore, Gulf of Mexico, and International oil and gas businesses.
Occidental Petroleum's decision to focus on share buybacks rather than production growth indicates that US output may not see significant acceleration this year, as other oil companies have also signaled a slowdown in growth. We belive investors will scrutinize oil producers and be wary of producers focusing on increasing production, which burned cash and eroded returns for much of the 2010s. Dividends and share buybacks are the focus.
We view that any revisit to 53 is in the buy zone. However, we believe OXY will see consolidation first before a trip back to 60+.
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