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OXY's International Operations Are Powering Multi-Dimensional Growth
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Key Takeaways
OXY's international assets contribute nearly 20% of production and more than 25% of proved reserves.
Middle East projects and new Algeria deals support OXY's production, cash flow and long-term stability.
Occidental is the largest independent oil producer in Oman and expands its presence in North Africa.
Occidental Petroleum’s (OXY - Free Report) global upstream footprint plays a pivotal role in driving its growth and resilience. International assets, such as Qatar’s Dolphin gas project, Oman’s Mukhaizna oilfields and the UAE’s Al Hosn Gas, contribute significantly to production and cash flow. These diversified operations help cushion the company from volatility in U.S. shale markets and reduce exposure to domestic regulatory and market fluctuations, providing a more stable foundation for consistent shareholder returns.
Occidental continues to deepen its presence in the Middle East and North Africa, with strategic stakes in high-potential regions. The company is the largest independent oil producer in Oman. OXY derives nearly one-fifth of the total production and over a quarter of its proved reserves from the broader Middle East. Occidental is also integrating decarbonization into its global operations through the 1PointFive platform, which is pioneering direct air capture technology.
The company’s recent memoranda of understanding with Algeria’s Sonatrach signal ongoing efforts to explore new hydrocarbon zones, unlocking further production upside and strengthening long-term international partnerships. Occidental expects its international operation to contribute in the range of 226-236 thousand barrels of oil equivalents per day in 2025 to total production.
The international initiatives enhance Occidental’s free cash flow profile and provide a cushion against domestic concentration risk. With robust operations in resilient global basins and a growing portfolio of low-carbon technologies, Occidental trades at an attractive valuation and offers compelling upside potential as its international strategy continues to evolve.
How International Operations Aid U.S. Oil & Gas Companies
International operations support U.S.-based oil and gas companies by diversifying revenue streams, stabilizing cash flows and reducing reliance on domestic markets. It supports companies like ExxonMobil (XOM - Free Report) and Chevron (CVX - Free Report) by providing diversified production sources and reducing exposure to domestic market fluctuations.
ExonMobil’s offshore assets in Guyana and LNG projects in Papua New Guinea drive high-margin growth, while Chevron’s stakes in Kazakhstan’s Tengiz field and Australia’s LNG operations contribute significantly to earnings and cash flow. International exposure positions both companies to capitalize on emerging market demand and global energy transition opportunities.
OXY’s Earnings Estimate is Going Down
The Zacks Consensus Estimate for Occidental’s earnings per share in 2025 and 2026 has decreased 10.16% and 17.38%, respectively, in the past 60 days.
Image Source: Zacks Investment Research
Occidental’s ROE Lower Than the Industry
Return on equity (“ROE”), a profitability measure, reflects how effectively a company utilizes its shareholders’ funds to generate income. The trailing 12-month ROE of OXY is 16.6%, a tad lower than its industry’s 16.89%.
Image Source: Zacks Investment Research
OXY Stock’s Price Performance
Occidental’s shares have gained 3.2% in the past month compared with the industry’s growth of 5.4%.
Image: Bigstock
OXY's International Operations Are Powering Multi-Dimensional Growth
Key Takeaways
Occidental Petroleum’s (OXY - Free Report) global upstream footprint plays a pivotal role in driving its growth and resilience. International assets, such as Qatar’s Dolphin gas project, Oman’s Mukhaizna oilfields and the UAE’s Al Hosn Gas, contribute significantly to production and cash flow. These diversified operations help cushion the company from volatility in U.S. shale markets and reduce exposure to domestic regulatory and market fluctuations, providing a more stable foundation for consistent shareholder returns.
Occidental continues to deepen its presence in the Middle East and North Africa, with strategic stakes in high-potential regions. The company is the largest independent oil producer in Oman. OXY derives nearly one-fifth of the total production and over a quarter of its proved reserves from the broader Middle East. Occidental is also integrating decarbonization into its global operations through the 1PointFive platform, which is pioneering direct air capture technology.
The company’s recent memoranda of understanding with Algeria’s Sonatrach signal ongoing efforts to explore new hydrocarbon zones, unlocking further production upside and strengthening long-term international partnerships. Occidental expects its international operation to contribute in the range of 226-236 thousand barrels of oil equivalents per day in 2025 to total production.
The international initiatives enhance Occidental’s free cash flow profile and provide a cushion against domestic concentration risk. With robust operations in resilient global basins and a growing portfolio of low-carbon technologies, Occidental trades at an attractive valuation and offers compelling upside potential as its international strategy continues to evolve.
How International Operations Aid U.S. Oil & Gas Companies
International operations support U.S.-based oil and gas companies by diversifying revenue streams, stabilizing cash flows and reducing reliance on domestic markets. It supports companies like ExxonMobil (XOM - Free Report) and Chevron (CVX - Free Report) by providing diversified production sources and reducing exposure to domestic market fluctuations.
ExonMobil’s offshore assets in Guyana and LNG projects in Papua New Guinea drive high-margin growth, while Chevron’s stakes in Kazakhstan’s Tengiz field and Australia’s LNG operations contribute significantly to earnings and cash flow. International exposure positions both companies to capitalize on emerging market demand and global energy transition opportunities.
OXY’s Earnings Estimate is Going Down
The Zacks Consensus Estimate for Occidental’s earnings per share in 2025 and 2026 has decreased 10.16% and 17.38%, respectively, in the past 60 days.
Image Source: Zacks Investment Research
Occidental’s ROE Lower Than the Industry
Return on equity (“ROE”), a profitability measure, reflects how effectively a company utilizes its shareholders’ funds to generate income. The trailing 12-month ROE of OXY is 16.6%, a tad lower than its industry’s 16.89%.
Image Source: Zacks Investment Research
OXY Stock’s Price Performance
Occidental’s shares have gained 3.2% in the past month compared with the industry’s growth of 5.4%.
Image Source: Zacks Investment Research
OXY’s Zacks Rank
Occidental currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.