Can Domestic Assets Continue to Drive Long-Term Growth for Occidental?

Occidental Petroleum Corporation OXY holds one of the strongest domestic asset portfolios in the U.S. energy sector. Its significant presence in the Permian Basin, the most prolific oil-producing region in North America, provides the company with a steady foundation of high-quality, low-cost production. These assets enable OXY to generate consistent cash flows, even amid commodity price volatility, supporting both operational stability and shareholder returns.

The company’s dominant position in the Permian gives it access to large, contiguous acreage with substantial resource potential. Occidental’s asset in the Rockies and Other regions, and the Gulf of America continues to support its total production volumes.

Occidental’s ability to develop and optimize these domestic assets translates into strong production growth and enhances resilience against market downturns. Such advantages make the company well-positioned to remain competitive in the domestic and global energy space.

Beyond crude oil, Occidental’s domestic assets also support its natural gas and natural gas liquids (“NGL”) production, diversifying its revenue streams. This balanced portfolio strengthens its role in meeting U.S. energy demand while ensuring cash flow stability. 

Occidental’s U.S.-based assets are also advancing large-scale carbon capture and storage initiatives in the same regions where it produces oil and gas. This reinforces the long-term value of its domestic footprint. By integrating conventional energy production with low-carbon solutions, Occidental’s high-profile U.S. assets serve as both a growth engine and a strategic lever for sustainability.

Domestic Assets Boost Prospects of Oil and Gas Companies

Domestic assets provide oil and gas companies with reliable production, reduced transportation expenses and stronger operational control. It improves supply security, limits exposure to geopolitical uncertainties and enables efficient infrastructure investments, fostering sustainable growth and long-term industry resilience.

Companies like ExxonMobil XOM and Devon Energy DVN significantly benefit from their domestic assets. ExxonMobil’s strong position in the Permian Basin supports efficient production and cost advantages. Devon gains substantially from the domestic oil and gas assets, particularly its core position in the Delaware Basin. Both companies gain operational stability, supply security and long-term growth opportunities through their high-quality domestic portfolios.

OXY’s Price Performance

Occidental’s shares have gained 3.7% in the last three months compared with the Zacks Oil and Gas-Integrated-United States industry’s rise of 2.2%.

Price Performance (Three months)

OXY Stock’s Earnings Surprise History

Due to the stable performance, the company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 25.72%.

Occidental’s ROE Lower Than the Industry

Occidental’s return on equity ("ROE") is lower than the industry average in the trailing 12 months. ROE of OXY was 13.78% compared with the industry average of 14.57%.

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.

 

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This article originally published on Zacks Investment Research (zacks.com).

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