Occidental Petroleum (OXY) is a controversial stock. The Anadarko Petroleum (APC) acquisition put heavy pressure on the shares in recent months, and the dividend yield has now risen to over 7%. Management claims the dividend is a top priority, but reducing the debt (by continuing to sell non-core assets) and recognizing synergies from the acquisition are critical. This article reviews the business, the acquisition, the leverage, risks, and finally concludes with our opinion about investing.
(Image source: Occidental Petroleum website)
Overview of the Business
Occidental Petroleum is an oil and gas