What drives this energy producer’s operations?
Occidental Petroleum is an energy company focused on oil and gas operations. It produces and sells hydrocarbons and runs related midstream and marketing activities tied to moving and selling that production. The business is built around large, long-lived operating assets and the day-to-day reliability of field operations. With a market value around USD 59.4 billion, it operates at major scale in the public markets.
Are margins holding up amid lower revenue?
FundamentalsFor 2025, reported in USD, revenue was about USD 21.6 billion and net income was roughly USD 2.4 billion. Revenue declined 19.2% versus the prior year, while trailing margins were 14.91% for operating margin and 23.65% for net profit margin.
The cost structure shows heavy non-cash charges and ongoing reinvestment: depreciation and amortization totaled about USD 7.5 billion and capital spending was around USD 6.4 billion. Liquidity and leverage were conservative at the period end, with roughly USD 2.0 billion of cash against USD 1.8 billion of total debt.
Is the stock trading below fair value?
DCF / MultiplesAt USD 59.70, the stock trades below the DCF fair value range implied by weaker-
Steady margins support resilience
TakeawayThe operating model depends on steady margins through revenue drops. Durability improves when capex stays disciplined versus depreciation. Low debt helps the business absorb choppy operating years. If margins slip or spending rises, the valuation support can fade.