TacticScaleWhat Occidental Petroleum Does & How It Makes Money (OXY)
Updated October 2026 · reflects Occidental Petroleum's latest reported financials
U.S.-based oil and natural gas producer with midstream operations. It makes most of its money selling the oil, NGLs, and natural gas it produces, so its earnings rise and fall with commodity prices.
How Occidental Petroleum makes money
It makes most of its money selling the oil, NGLs, and natural gas it produces, so its earnings rise and fall with commodity prices. Its midstream and marketing arm adds revenue by gathering, processing, transporting, storing, and marketing hydrocarbons, CO2, and power.
What Occidental Petroleum does
Occidental Petroleum is a Houston-based energy company founded in 1920. It acquires, explores, and develops oil and gas properties in the United States and internationally. Its Oil and Gas segment produces oil and condensate, NGLs, and natural gas, manages transportation and storage capacity, and invests in related entities. The Midstream and Marketing segment buys, gathers, processes, transports, stores, and markets oil, condensate, NGLs, natural gas, carbon dioxide, and power. That gives Occidental a presence both in the ground and along the chain that moves product to market, but its results remain closely tied to oil and gas prices.
Products & services
- Crude oil and condensate
- Natural gas liquids (NGLs)
- Natural gas
- Gathering, processing and transportation services
- Carbon dioxide (CO2) marketing and transport
- Power marketing
What is Occidental Petroleum worth?
On an owner-earnings DCF, Occidental Petroleum's most-likely value is about $59 versus a recent price near $60 (1% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$44) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
Related companies
EOG Resources (EOG) · Gulfport Energy (GPOR) · ConocoPhillips (COP) · ONEOK (OKE) · Oriental Energy (002221.SZ)