Occidental Petroleum (NYSE: OXY) entered 2019 with loads of upside potential. The energy giant was coming off a transitional year during which it completed its cash-flow breakeven plan. As a result, it only needed oil to average $40 a barrel to support its operations and its high-yielding dividend. With crude starting the year well above that level, Occidental appeared poised to generate lots of excess cash. Indeed, it looked to me like the top oil stock to buy heading into 2019.
However, instead of sitting back and watching the cash flow in as oil prices rose during the year, Occidental went on the offensive and paid a pretty penny to wrestle rival Anadarko Petroleum away from Chevron (NYSE: CVX). It was a move that infuriated shareholders as it added a substantial amount of debt to Occidental's balance sheet. That weight caused the stock to tumble 33% on the year.
In the wake of that slump, the question now is whether Occidental has suffered enough, or if further declines could still be ahead.