|Instrument:OCCIDENTAL PETROLEUM CORP|
Oxy is a leading international explorer and producer of oil and natural gas, headquartered in Houston, Texas. Though the company’s full name is Occidental Petroleum Corporation, it’s often called Oxy thanks to its New York Stock Exchange ticker symbol and the company logo. Oxy frequently appears in prestigious lists such as America’s Best Employers and America’s Largest Public Companies. In 2021, the company was ranked 183rd on the Fortune 500 and 670th on the Forbes Global 2000.
Founded in California in 1920, Oxy expanded internationally in the 1960s by extending operations to the United Kingdom and Latin America, specifically Peru, Venezuela, Bolivia, and Trinidad. In the following decades the company rigorously continued to expand to other regions while also experiencing some setbacks along the way. In 1988, an explosion in the company’s Scottish North Sea platform resulted in 167 fatalities – an incident known as the world’s deadliest offshore disaster.
Fast forward to 2022, the global industry giant, together with its subsidiaries, is active in the United States, the Middle East, Africa, and Latin America. The company focuses on three main segments: Oil and Gas, Chemical, and Marketing and Midstream.
Oxy Stock History
Oxy has been publicly traded on the New York Stock Exchange (NYSE) since March 3rd, 1964. It’s also part of the S&P 500 stock market index. As of January 2022 Oxy has a market cap of $34.34B (calculated by multiplying the current Oxy share price with the amount of outstanding Oxy shares), making Oxy the world’s 556th most valuable company in terms of market cap.
Since going public, Oxy has performed two stock splits – one on January 29, 1968, which was only four years after the company went public, and another on July 20, 2006. The former was a 3 for 1 split, while the latter a 2 for 1. That means, 100 shares bought in 1967 would be worth 300 shares in 1968, and 600 shares in 2006.
Wondering why the Oxy stock went without a split for nearly four decades? In the 1980s, 90s, and even in the early 2000s, given the political and economic dynamics across the globe, the Oxy share price mostly treaded water and didn’t justify a split. In mid-2000s came a big spike in oil prices, moving the Oxy share price to three digits – which prompted the second stock split in 2006.
In the following decade, the stock price went up significantly, with a high of $102.08 on May 6, 2011. Between 2018 and 2020 there was a general downward trend. Starting November 2020, the Oxy stock price began climbing again. Then in 2021, we see that in the second half of 2021 its share price has outperformed the S&P500 Index by +27.04%.
When it comes to Oxy’s dividend policy, giving payouts has remained a high priority for the company. There has been slow dividend growth over the years. In 2021, Oxy paid a total dividend of $0.04.
Oxy’s growth has been strong in recent years, with revenues growing at an average rate of 27% between 2016 and 2019, from $10B to $21B. Here’s how much each one of Oxy’s three operating segments contribute to total revenues: Oil & Gas 63%, Chemical 18%, and Midstream & Marketing 19%.
How to trade OXY stock
There are several factors to consider when trading the Oxy stock. Leading among them is OPEC+ meetings. OPEC+ is a group of twenty-four oil-producing nations who meet frequently, and whose policy changes directly affect crude oil prices and quantities around the world. OPEC+ decisions tend to have a big impact on energy companies such as Oxy.
Other factors to consider include new legislation in oil production or import in countries where Oxy is active. Such legislation may have to do with quotas, prices, taxes, trade agreements, and even trade wars. Regional and global economic slowdowns impact energy consumption as well, thus lowering prices.
In the last two decades, there has been growing demand for green energy and a lower carbon footprint. As consumers become more eco-conscious, governments are taking a more active role in protecting the environment. And as investors lean towards ESG (Environmental, Social, Governance) investments, stock market dynamics change, impacting the way energy companies behave. Oxy, for its part, has been active in creating sustainable operations. When trading Oxy stocks, keep an eye on new eco-legislation that may impact this stock. Also keep in mind that Oxy stock prices might be influenced by natural disasters as these can have a material impact on field operations as well as consumer demand.
Oxy’s top competitors include globally recognized corporations such as ExxonMobil, Saudi Aramco, Pioneer Natural Resources, ConocoPhillips, Williams Companies, and Pemex all publicly traded companies except for Pemex. ExxonMobil, Saudi Aramco, and Pemex boasted the highest revenues in 2020.
Oxy periodic earnings
Oxy reports its earnings every three months.
Why trade the OXY with AvaTrade
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