Is Occidental Petroleum a buy sell or hold?
Occidental announced $4 billion in cash flow from operations for the 4th quarter. As a result, one is paying a little more than 3x on a CF multiple. Why does the firm trade at such a low multiple? In addition, Warren Buffett owns a huge amount of shares. Lending credibility to the management.
Is this a value trap or will this represent an amazing buying opportunity?
Moreover, Occidental Petroleum Corporation, often referred to as Oxy, is an American multinational oil and gas exploration and production company that was founded in 1920 by Armand Hammer.
Occidental Petroleum made its first significant oil discovery in Libya in 1956, which led to the company’s expansion into international markets.
In the 1960s, Occidental Petroleum acquired several other oil and gas companies, including Island Creek Coal Company, Hooker Chemicals & Plastics, and the Midcon Corporation.
Occidental Petroleum acquired the domestic oil and gas assets of Cities Service Company in 1974. As a result, expanding the company’s operations in the United States.
In the 1980s, Occidental Petroleum was involved in a number of controversial ventures, including a joint venture with the government of Libya and the acquisition of the Hooker Chemical Superfund site, which had been contaminated with toxic waste.
Furthermore, in the 1990s, Occidental Petroleum expanded its operations in Latin America, including a significant presence in Colombia, Ecuador, and Peru.
In 2000, Occidental Petroleum merged with an American oil and gas company, Altura Energy Ltd., which helped to expand the company’s operations in the Middle East and North Africa.
Lately, Occidental Petroleum focused on expanding its operations in the United States. Moreover, particularly in shale oil and gas production. In 2019, the company acquired Anadarko Petroleum, one of the largest independent oil and gas companies in the United States.
In conclusion, today, Occidental Petroleum is one of the largest oil and gas companies in the world. With operations in the United States, Latin America, the Middle East, and North Africa. Lastly, headquartered in Houston, Texas, and has approximately 11,000 employees worldwide.
Is Occidental Petroleum a buy sell or hold?
