Occidental Petroleum Corp (NYSE:OXY)

OXY will fare better than the indexes with excellent return on assets, value underlying assets and likely greater downside for S&P 500. The shares are appropriately or slightly under valued relative to a near high for major indices.

Strong reserve potential. Shareholder friendly managment. Coming off high expense year coincident to bringing new projects online.

California shale

http://wiki.fool.com/The_Graham_Number
Formula: Fair value=Sqrt(EPS*BV*22.5) I expanded it a little by also using EPS Normalized and Tangible BV
Scottrade data good as of Sep 30th
GNV with EPS & BV: Sqrt(7.28 * 49.96 * 22.5)= $90.46
GNV with EPS Normalized & TangBV: Sqrt(8.49 *49.96 * 22.5)=$97.59
GNVR: $90.46 to $97.59

Also I'd like to thank AnsgarJohn http://caps.fool.com/Pitch/OXY/6561403/sell-at-87-graham-number-a-hre.aspx
For the Gurufocus article. The part that was one of the most important reasons to me for wanting to own a company is the management's incentives are aligned with shareholders' interests.

Quote: "OXY has had minimum stock ownership guidelines for its senior management since 1996. The chairman and chief executive officer need to own stock equivalent in value to 10 times that of base salaries; while executive vice presidents and other vice presidents need to own stock equivalent in value to three times and two times that of base salaries respectively. Additionally, named executive officers are required to retain a number of shares equal to 50% of the net after-tax shares received pursuant to equity awards granted after 2008 for at least three years after the vesting date. All executive officers and directors as a group own 1.4% of the outstanding common stock in OXY.

OXY's executive compensation program is based primarily on long-term performance-based awards paid at least 50% in shares of company stock. A relatively small portion of executive compensation is paid on an annual basis and in cash. The executive compensation program supports the long-term alignment of executive and stockholder interests by using total shareholder return over 3 years as the performance metric for approximately 80% of executive long-term awards. Payouts are determined by OXY's total shareholder return ranking within a peer group of 12 companies, with a maximum payout made only if OXY ranks first and no payout if OXY ranks in the bottom 3 companies. Key executive compensation represented 1.5% and 2.9% of net income in 2011 and 2010 respectively." Unquote.

Outperform

I like the 73 price point for these guys but they are close at 75. I am a fan of the low P/E, a dividend achiever, growth when others seem to shrink. I also like the chemical component. Boring plodder but should do well as economies get stronger.

Occidental Petroleum operates, among other places, in two very difficult spots: California and the Middle East. One is very hostile toward development, and the other is geopolitically unstable. Underperform. (Picked along with my dad, after conversation this morning.)

"Low" risk mentality, betting on already proven assets, and some of the most advanced CO2 operations should keep this company successful.

great financials - solid dividend - now cheap enough to enjoy big price appreciation

I don't know what this company does, I presume it is some sort of drilling, but whoever decided to call it "Occidental" must have been under the influence of some serious drugs. Thumbs down for the likelihood of heavy drug use by corporate leadership.

seic

Undervalued. ML $150

Oxy is set up. All they have to do is drill.

i like that they have large oil in abu dhabi

Production is up yoy for the past few years, dividen keeps rising steadily, outside US sales are strong but with only 23% of assets outside US they have a lot of room to grow. Similar to both Exxon ans Shell with both Oil and Gas and chemical production. Own thier pipelines and make small rev from these types of operations. P/E currently at 12 and cash was doubled last year. Total assets site around 52.43 B.

They have a large shale presence also, and are the largest shale company in California. This extremely well run company should beat its industry handily over the next five years.

This is strictly a dividend payout pick. Div. growth rate is higher than industries (17.49 to 1.95 IND), and payout ratio is still lower showing room to continue that growth rate (24 to 31 IND). Also I like their ROA (11.6 to 8.8 IND). If oil prices stay up trending this should be a good pick.

Overall industry outlook is positive, so I see stable growth in oil prices over the next year. Company primarily drills in the U.S. so not much exposure to the Middle East regions.

it's a steamroller

On December 10, the dividend was increased by 21%. OXY has recently received price target increases from multiple analysts. Recent strategic investments will increase production capabilites. Good long term grown potential. The stock is selling at a 25% discount to its 5 year PEG average.