Thoughts and Update on OXY's Q4 2021 Results

March 3, 2022

We recently published an update on Occidental Petroleum (OXY) and wanted to also expand on them for our subscribers. We’re currently long OXY warrants, which expire in 2027 and have a $22 strike price. Prior to writing the article, OXY’s shares were trading ~$41/share, but we thought it had a good chance of appreciating to $50/share by end-of-Q2 as they progressively delevered and free cash flow rolled in. The recent Russian invasion of Ukraine has obviously spike oil prices, and OXY’s shares have appreciated to $48 where they currently sit. It’s notable, however, that OXY has actually become cheaper despite the share price appreciation on a free cash flow to market cap perspective.