Roth Upgrades Occidental Petroleum to Buy on Oil Leverage
Roth Capital raised Occidental Petroleum to Buy, citing its oil-price exposure, unhedged 2027 production and plans to cut debt toward $10 billion.
- published on Newsmetry
- original source published
the public page opens no earlier than 15 minutes after we detect the story. approved stories may reach the api sooner. connect the api →
what happened
According to GuruFocus, Roth Capital upgraded Occidental Petroleum shares to Buy from Neutral, and the stock rose on Monday. Analyst Leo Mariani said the company offers one of the more attractive ways to gain exposure to higher oil prices.
Mariani estimated that roughly 49% of Occidental's production is oil, with about 18% of that priced at a premium to Brent. The company is unhedged on oil in 2027 and beyond, so shareholders feel more of any sustained crude rally. Roth expects most free cash flow to go toward reducing gross debt to roughly $10 billion, after which buybacks could follow in 2027. Occidental also targets about $4 billion of extra free cash flow over 2025–2030, assuming $65 WTI and no production growth.
why it matters
The key link for markets is between oil sensitivity and debt reduction. If WTI weakens, the unhedged position can quickly work against the company, so WTI prices, progress on debt and possible buybacks are the main things to watch.
market impact
Oil: Occidental shares track crude prices, and its unhedged position amplifies sensitivity to WTI
tags
instruments
sources
- Analyst Makes Strong Call on Occidental Petroleum Stock — gurufocus.com, 20 October 2026 at 15:42 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
the public page opens no earlier than 15 minutes after we detect the story. approved stories may reach the api sooner.
get stories in real time ↗