In February 2026, the stock price of Occidental Petroleum Corporation (OXY) hit a new 52-week high of $53.33, continuing its recent upward trend. This spike comes after the energy behemoth’s shares increased by 26% over the previous three months and by 12.5% in the last week alone. Both novice and experienced investors have taken notice of the stock’s recent momentum despite its modest 5% year-over-year return. However, the crucial query still stands: is Occidental a flash-in-the-pan performer or a value stock?
The rise of Occidental is not an accident. With an emphasis on debt reduction, operational simplification, and increasing oil and gas production in strategic regions such as the Permian Basin, the company’s operations have been strong in recent quarters. Given its attempts to reduce capital expenditures while preserving production levels, it’s possible that investors are viewing this as a company coming out of a few difficult years. Occidental seems to be strengthening its financial position with $4.3 billion in free cash flow and a careful approach to capital allocation.
The business appears to be stable on paper. With operations throughout the United States and abroad, including the Middle East and North Africa, it is positioned as a significant player in the oil and gas industry. This is corroborated by recent data: in 2025, Occidental exceeded the upper end of its production guidance, posting a new record production of 1.4 million barrels of oil equivalent per day. Analysts are also praising the company for cutting its operating expenses by $275 million drastically. It appears that investors think these upgrades could position Occidental for more consistent, long-term growth.
However, there is some slight uncertainty hidden beneath the surface of these encouraging results. The oil business is inherently unstable. Even with Occidental’s remarkable production figures, the company’s future is largely dependent on the volatile price of oil globally. Many in the industry rushed to adapt when oil prices fell the last time, and Occidental’s stock did not perform well during those lean times. The company’s varied portfolio, which includes midstream services and petrochemicals, provides some diversification, but it is still very vulnerable to changes in the price of oil.
| Key Information | Details |
|---|---|
| Company Name | Occidental Petroleum Corporation |
| Ticker Symbol | OXY |
| Market Cap | $51.71 Billion |
| 52-Week High | $53.33 |
| 52-Week Low | $34.79 |
| Current Price | $52.43 |
| Revenue (2025) | $21.59 Billion |
| Dividend Yield | 1.98% |
| CEO | Vicki Hollub |
| Headquarters | Houston, TX |
| Industry | Energy (Oil & Gas) |
| Reference Websites | Yahoo Finance |
The situation is further complicated by Occidental’s debt. Even though the company has made progress in lowering its liabilities, there is still a sizable amount of debt—roughly $15 billion—on its balance sheet. Such debt levels are inherently risky, particularly in the event of a decline in oil prices or an unforeseen increase in operating expenses. Indeed, one challenge that investors may need to consider is Occidental’s capacity to pay down its debt while expanding. The market’s optimism about the company’s future is reflected in its P/E ratio of 38.84, but if the growth prospects don’t work out as planned, the stock may be overpriced.
The participation of Berkshire Hathaway, a significant shareholder for many years and owned by Warren Buffett, is arguably one of the most intriguing features of Occidental Petroleum’s stock. It’s difficult to ignore how Buffett’s investment has influenced how people view the stock. Many investors have followed suit as Buffett has increased his stake in Occidental; some think that OXY is a wise investment because of the Oracle of Omaha’s support. But even Buffett can make mistakes, as we’ve seen in the past, and his stock purchases and sales frequently cause market tremors and occasionally skew valuations.
The wider effects of Occidental’s environmental initiatives, like its participation in carbon capture technologies, should also be taken into account. Occidental has worked to diversify into these fields as the world’s attention shifts toward clean energy, especially with its STRATOS project. This tactic might act as a long-term buffer against upcoming oil industry regulations. However, it’s still unclear if these investments will yield significant returns in the near to medium term, and scaling up these technologies could come at a high cost.
The primary driver of Occidental Petroleum’s stock price in 2026 will probably be the company’s capacity to continue generating cash flow while controlling its debt levels. The company appears to be preparing for even greater performance in the upcoming quarters, as evidenced by its $700 million tender offer and plans to pay down even more debt. But there are still dangers. The stock’s upward trajectory could be halted by a decline in the oil market, an inability to scale its clean energy technologies, or even geopolitical tensions that impact the world’s oil supply.
One cannot help but keep a close eye on Occidental’s upcoming earnings report. There is a noticeable sense of uncertainty despite analysts’ predictions of continued growth—this isn’t a stock that will always move in one direction. Despite its recent successes, the company’s ability to succeed in the future will depend on how well it handles the volatile oil market and the rapidly changing energy landscape.
