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Why Occidental Petroleum Stock Rocketed Nearly 17% in February

  • Writer: Oil, Gas and Energy
    Oil, Gas and Energy
  • 10 hours ago
  • 2 min read
Occidental Petroleum (OXY) stock surged nearly 17% in February 2026, dramatically outperforming the broader energy sector amid a mix of strong fundamentals, operational wins, and favorable market tailwinds.
Occidental Petroleum (OXY) stock surged nearly 17% in February 2026, dramatically outperforming the broader energy sector amid a mix of strong fundamentals, operational wins, and favorable market tailwinds.

January set the stage with a solid 10% gain, riding oil price momentum as West Texas Intermediate (WTI) climbed 12% and Brent 17% on early-year geopolitical jitters. However, the real breakout hit post its February 18 Q4 2025 earnings release: shares rocketed after a 67% adjusted EPS beat ($0.31 vs. $0.18 expected), fueled by midstream strength offsetting softer realized oil prices ($59.22/bbl vs. $69.73 YoY). Production reached 1,481 thousand barrels of oil equivalent per day (Mboed), topping guidance highs led by Permian and Rockies outperformance, while $5.8 billion in debt cuts (total ~$14B reduction) and a dividend hike signaled financial discipline.

Key Catalysts

  • Earnings Momentum: Midstream ops (pipelines, processing) delivered outsized contributions, cushioning upstream headwinds and impressing investors—OXY now outpaces diversified giants like Exxon and Chevron YTD.

  • Debt Overhaul: Post-Anadarko acquisition cleanup boosted free cash flow to $4.3B recently, enabling buybacks and payouts; OxyChem divestiture (closed Jan 2026) sharpened upstream focus.​

  • Oil Rally Tailwinds: February's Iran strikes spiked WTI to $72-75, amplifying OXY's leverage as a Permian heavyweight—Warren Buffett's Berkshire holds ~28% stake, adding halo.​

  • Investor Sentiment: Analysts upgraded targets (e.g., Barclays, RBC), citing undervaluation (DCF suggests 48% upside) and shale resilience amid global shocks.​

Permian Context

OXY's Delaware Basin dominance (~1.2M net acres) thrives amid Targa expansions, Chevron's 900 MMcf/d power hub absorbing Waha gas glut, and fracker restraint—no rig rush despite $80 Brent. Ties into RRC runoff (Wright-French) and orphaned wells funding, positioning OXY for FCF surges as gas prices stabilize.​

At ~$52/share end-February (22%+ monthly peak), OXY trades at attractive multiples for oil bulls, though volatility looms if Mideast de-escalates—ideal for Permian watchers eyeing National Petroleum Day themes.


 
 
 

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