Occidental Petroleum stays a Buy with strong balance sheet and growth plans despite market risks.

Occidental Petroleum (OXY) remains a Buy due to a strengthened balance sheet, ongoing debt repayments nearing targets, and a diversified low-cost portfolio. The company’s 2026 guidance includes $5.5–$5.9 billion in capital expenditures, $750 million in interest expenses, and over $1.2 billion in free cash flow improvements, with production expected between 1,410 and 1,460 Mboed. Short-term oil price gains from Middle East tensions support debt reduction, but normalization may pressure margins and valuation if fundamentals weaken. With a new CEO and intrinsic value above current levels, OXY is positioned for long-term value, though volatility and macroeconomic risks remain.