Oxy Stock Sees Significant Gains Amid Rising Oil Prices
Occidental Petroleum Corporation (OXY) stock jumped 16.9% in February 2026, fueled by rising oil prices and a strong earnings report for the fourth quarter. The surge in stock price reflects a broader trend in the oil market, where West Texas Intermediate (WTI) crude prices increased significantly, contributing to heightened investor confidence.
In February, WTI crude rose by 2.8% to $67 per barrel, and in early March, it surged another 10% to over $73. This upward momentum in crude prices was fueled by rising tensions between the U.S. and Iran, which have historically impacted oil supply and pricing. The increase in oil prices has had a direct correlation with OXY’s stock performance, as the company is heavily reliant on the oil market.
Occidental’s fourth-quarter earnings report revealed an earnings per share (EPS) of $0.31, nearly double the analyst consensus estimate of $0.17. Despite this impressive performance, the company’s revenue of $5.11 billion fell short of analyst expectations, which had anticipated $6.02 billion. This discrepancy highlights the challenges Occidental faces in meeting market forecasts, even as it demonstrates strong profitability.
In response to its positive earnings, Occidental raised its quarterly dividend from $0.24 to $0.26 per share, yielding approximately 1.9%. This decision signals the company’s commitment to returning value to its shareholders, particularly in a favorable market environment. The company’s payout ratio stands at 59.63%, indicating a balanced approach to reinvesting in the business while rewarding investors.
Institutional investors continue to show strong interest in OXY, with Regal Partners Ltd recently taking a new stake valued at $6.62 million. Overall, institutional investors own 88.7% of the stock, reflecting confidence in Occidental’s long-term strategy and market position. The stock’s consensus analyst rating is currently a Hold, with a price target of $51.24. Notably, UBS has raised its price target for OXY to $55, while Piper Sandler has adjusted theirs to $54.
As of March 9, 2026, OXY opened at $54.28, nearing its 52-week high of $56.34. This performance underscores the stock’s resilience in a fluctuating market. Investors are closely monitoring the company’s plans to cut capital spending to between $5.5 billion and $5.9 billion this year, which may impact future growth but could also enhance profitability in the short term.
Reactions to Occidental’s recent performance have been largely positive, with analysts and investors expressing optimism about the company’s ability to navigate the current market landscape. The combination of rising oil prices and strong earnings has positioned OXY favorably, although challenges remain as the company seeks to align its revenue with market expectations. Details remain unconfirmed regarding the long-term implications of these developments, but the immediate outlook appears promising for Occidental Petroleum and its shareholders.