$50/bl breakeven achieved ahead of schedule
OXY has successfully delivered an ambitious plan to achieve cash flow breakeven in a $40/bl scenario, ahead of schedule. The Permian Unconventional business deserves accolades as the key driver for success. With ~$5bn extra cash to hand versus plan, short cycle investments in unconventionals offering >75% well-level returns, plus a $2bn share buy-back, are sensible uses of incremental capital. We remain Neutral with a raised price target of $83 (from $67).Occidental Petroleum has three reporting segments: oil and gas, which explores for, develops and produces oil and condensate, natural gas liquids (NGL) and natural gas; chemical, which mainly manufactures and markets basic chemicals (chlorine, caustic soda, chlorinated organics, potassium chemicals, ethylene dichloride, chlorinated isocyanurates, sodium silicates and calcium chloride) and vinyls (vinyl chloride monomer, polyvinyl chloride and ethylene); and marketing and midstream, which purchases, markets, gathers, processes, transports and stores oil, condensate, NGL, natural gas, carbon dioxide and power.
Formed in 2003 by an established team from Cazenove, one of the most respected investment banks in the UK, Atlantic Equities conducts and publishes fundamental, bottom up research on mid and large cap US companies.
Atlantic provide order execution through a wide range of DMA products and algorithmic trading suites.
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