Occidental Petroleum - Utilize Options To Gather A 25% Secure Yield With Future Potential

Occidental Petroleum has an impressive portfolio of assets. The company is focused on executing in 2020, both in terms of the Anadarko acquisition, and in terms of production.
The company is operating in an incredibly difficult oil environment. OPEC+ is refusing a production cut as COVID-19 increasingly marches the economy towards a recession.
Utilizing an options investment strategy, Occidental Petroleum investors can generate significant returns through Wes Midstream from Occidental Petroleum.
Occidental Petroleum (NYSE: OXY) is one of the largest publicly traded American oil companies. The company’s market capitalization has dropped to just under $11 billion, as its dividend has increased towards 5% (post dividend cut). As we’ll see throughout this article, not only is the company’s dividend secure, but utilizing an options strategy, investors can gather a 25% annualized secure yield.

Occidental Petroleum - Simply Wall St.
Occidental Petroleum 2020 Guidance
I’ve talked about Occidental Petroleum as a company several times before. The purpose of this article isn’t to discuss the company’s specific assets, but rather to discuss the company’s financial setup along with potential investment strategies.

Occidental Petroleum 2020 Guidance - Occidental Petroleum Investor Presentation
Occidental Petroleum has been careful not to highlight the specifics of its expected FCF from oil production, choosing to instead focus on production. I would feel the same way in such a difficult oil environment. The company is guiding for 1Q 2020 production of ~1.375 million barrels / day, primarily centered in the Permian Basin, but also spread out across the United States and internationally.
The company is estimating production based on Feb. 13 Brent 2020 calendar strip prices. It’s also worth noting, as the company’s significant assets have been laid out, the company’s pure production costs are very low at ~$7.50 / barrel.... Read more