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.
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