Occidental Price Prediction: Wall Street Thinks OXY Goes to $69 This Year

2 weeks ago 11

Joel South

Thu, March 12, 2026 astatine 9:28 AM CDT 4 min read

Occidental Petroleum (OXY) reduced Permian spending from $3.9B to $3.1B portion maintaining accumulation maturation done kid wells and enhanced lipid recovery, achieving a 16% simplification successful caller good costs versus 2024 with $2B successful cumulative yearly savings since 2023. The institution chopped indebtedness by $5.8B to $15.0B pursuing the OxyChem merchantability to Berkshire Hathaway and doubled its quarterly dividend to $0.26 per stock implicit 4 years.
Wells Fargo and Piper Sandler upgraded Occidental to Overweight connected peer-leading Permian superior ratio and durability of escaped currency travel procreation crossed commodity cycles, with the $69 terms people contingent connected WTI stabilizing astatine $75+ per tube mid-cycle.
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Occidental Petroleum (NYSE:OXY) has been connected a teardrop with shares up a 35% year-to-date. Over the trailing 12 months, OXY has gained 25%. The Street's statement terms people sits astatine $53.28, with astir analysts successful Hold territory. But Wells Fargo expert Sam Margolin conscionable issued a treble upgrade to Overweight from Underweight, lifting his terms people to $69 from $47, representing astir 35% upside from existent levels. Piper Sandler simultaneously upgraded to Overweight with a $66 target, adding further condemnation to the bull case.

But tin OXY realistically scope $69 by the extremity of 2026?

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Margolin's thesis centers connected peer-leading lipid terms sensitivity and Permian superior efficiency. Occidental reduced its Permian spending program from $3.9 cardinal to $3.1 cardinal portion maintaining accumulation growth, enabled by a pivot to kid wells, enhanced lipid betterment techniques, and structural productivity gains. Wells Fargo believes OXY tin nutrient somewhat up of guidance successful 2026 and resume accelerated maturation successful 2027, returning superior spending to astir $3.5 billion. Lower near-term walk combined with higher aboriginal output is the compounding ratio communicative driving the upgrade.

Permian Capital Efficiency: New Permian good costs are down 16% versus 2024, with cumulative savings since 2023 totaling astir $2 cardinal successful yearly lipid and state costs. With 84% of the full assets basal breaking adjacent beneath $50 per barrel, the Permian motor generates durable escaped currency travel crossed commodity cycles.
Rising Oil Price Environment: WTI precocious surged to $94.65 per tube arsenic of March 9, 2026, driven by geopolitical disruptions. Piper Sandler raised its mid-cycle crude terms presumption to $75 per tube from $70. With OXY's Q4 realized crude astatine $59.22 per barrel, higher realizations travel straight to escaped currency flow.
Deleveraging and Dividend Growth: The OxyChem merchantability to Berkshire Hathaway chopped main indebtedness by $5.8 cardinal since mid-December 2025 to $15.0 billion. The quarterly dividend has been raised to $0.26 per share, having doubled implicit 4 years, with $365 cardinal successful yearly involvement savings expected successful 2026 alone.