Is Occidental Petroleum Stock a Buy?
The last couple of years haven't been great for Occidental Petroleum (NYSE: OXY). Some of that has to do with the broader energy market, but a good portion was also tied to company-specific decisions. If you are looking at Occidental today as a way to invest in the recovering energy sector, here are some things to consider before jumping aboard.
The troubles that Occidental faced in 2020 were exacerbated by a decision management made in 2019. But there's a bit of backstory here. Energy industry giant Chevron (NYSE: CVX) had agreed to buy Anadarko Petroleum for $50 billion, including the debt it would be taking on from Anadarko. Wall Street liked the deal, as it fit well with Chevron's business, expanding the company's reach in the onshore U.S. space and in the Gulf of Mexico, among other areas. Chevron, meanwhile, could easily handle the size of the deal. Only Occidental, a much smaller oil company, made the decision to step in and make a higher offer for Anadarko.
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Source Fool.com
