Occidental Petroleum Corporation (OXY), together with its subsidiaries, engages in the acquisition, exploration, and development of oil and gas properties in the United States, the Middle East, and Latin America.
Occidental Petroleum Corporation’s shares fell through support on fears of the coronavirus Covid-19 pandemic environment but the recent sell-off created an attractive opportunity to invest in this stock.
At its current share price, Occidental Petroleum could be a very good long-term investment with solid growth prospects. The company’s revenue increased in 2019 to 20.3 billion USD from 17.8 billion in 2018 and the growth projects will ensure that the numbers will be moving up in the future.
It is also important to mention that the net loss in 2019 was 667 million USD while the net income in 2018 was 4.13 billion USD. Another important information is that Berkshire Hathaway bought $10 billion worth of Occidental’s preferred shares in 2019 to help finance its $38 billion acquisition of Anadarko Petroleum.
The deal was a bet on rising shale oil prices months ahead of the worst price crash in decades, and saddled Occidental with a huge debt load at a time when there are few buyers for assets to offset the acquisition cost. Purchase prices were between $37.34 and $44.23, with an estimated average price of $39.98.
When we take a look at the one-year chart, we can see that the price dropped from 54 USD to 9 USD and started to raise. On this chart, I marked resistance and support levels.
Supports levels are 12 USD and 10 USD, 20 USD and 30 USD represent the resistance levels.
If the price jumps above 15 USD it would be a “BUY” signal and we have the open way to 20 USD. Rising above 30 USD supports the continuation of the bullish trend overview efficiently for the upcoming period. If the price falls, every price in a range from 8 USD – 10 USD could be a very good opportunity to invest in Occidental Petroleum.
Conclusion: Occidental Petroleum Corporation (OXY) A Worthy Invesment?
Shares of OXY, overall, appear to be a very good investment option, with Wall Street analysts expecting its price to rise considerably in the next several years. Occidental Petroleum’s shares fell through support on fears of the coronavirus Covid-19 pandemic environment but the recent sell-off created an attractive opportunity to invest into this stock. The majority of the metrics point to this investment being highly attractive.
