Can OXY Keep Growing 35% CAGR? | Oil Industry | Q2 Earnings Analysis

Hi! In this video I did an intrinsic value analysis for Occidental Petroleum, which is one of the biggest oil companies in the United States. This stock has decreased by 2% over the last year while the stock market has increased 2%. Occidental Petroleum is a business competing in the oil and gas industry, and it has recently reported its earnings results for the second quarter of FY2023. I used a discounted cash flow model and the company's weighted average cost of capital in Microsoft Excel to try and figure out what the intrinsic value of Occidental Petroleum would be based on the projected free cash flow of their business. I also looked into Occidental Petroleum's income statements, Occidental Petroleum's balance sheets, and Occidental Petroleum's cash flow statements to get a sense of how much debt they currently have as well as if they'll grow their profits in the future and also to identify what a good buying price would be for Occidental Petroleum from a value investing perspective.
Occidental Petroleum Q2 2023 Earnings Results August 3rd
occidentalpetr...
Warren Buffett's Favorite Energy Stock Reported Profits Falling Nearly 80% in Q2
www.investors....
1) Revenue of $6.7 billion down 37% from $10.7 billion year over year
2) Net income of $605 million down 83% from $3.5 billion year over year
3) Operating Cash Flow of $3.1 billion for Q2
4) Repurchased $425 million of common stock
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[@MyFinancialFocus]

Is Oxy really trading 91% below intrinsic value per share or will their stock begin to decline?

[@Morphious117]

Nice review of report

[@MyFinancialFocus]

Thanks!

[@m3chris1]

No, probably not it has a growth in price of zero over the last year, actually minus 10 percent

[@MyFinancialFocus]

Maybe

[@m3chris1]

@@MyFinancialFocus did it have a 45 percent dividend to make up the difference?

[@MyFinancialFocus]

@@m3chris1 True, but the growth rate is in reference to the cash flows. If the underlying financials continue increasing at 35% per year like they have been over the last 5 years, the share price could eventually begin to reflect the financial growth.

[@m3chris1]

@MyFinancialFocus agreed and buffet ain't no dummy

[@MyFinancialFocus]

@@m3chris1 true :)