No. of Recommendations: 17
I found this on the web for those who have an interest in OXY:
B: And your market cap is right about $50 billion. I wanted to get your opinion on the overall investment thesis for Oxy and just how undervalued you feel the company still is.
VH: We’re incredibly undervalued. It’s because we’ve been going through a transformation, and we’re not quite done with that yet. It’s two-pronged. One was to get out of assets that were geopolitically risky, and to move more to the U.S. to lower that risk, but also to get higher-quality assets. We started that almost 10 years ago. That was the first part of the transformation. The second part was to get bigger in the U.S., and that was the reason for the Anadarko acquisition. CrownRock was helpful for that, too.
A global breakdown of Occidental's portfolio. (Source: Occidental Petroleum)
When I became CEO, 50% of our production was international and, now, about 83% of our production is domestic, and between 90-95% of our future growth is in the United States. From a geopolitical standpoint and from a quality of assets standpoint, we have the best assets that we’ve ever had, and they’re safe assets. What we did internationally is, we stayed in the areas that we knew were going to be stable. I won’t mention the countries we exited, but we’re in Abu Dhabi, we’re in Oman and in Algeria. We initially did try to sell Algeria, but we couldn’t make the sale happen. And now that we are there, we’ve become more knowledgeable about the reservoirs, and the reservoirs there are really good, and the country is a democratic country. And so now, the three places where we are internationally are what we think are some of the safest in the world. Oman and Abu Dhabi, while they’re in the Middle East, we don’t believe that those two countries would ever be involved in any of the potential chaos that’s happening there now.
