Introduction
Table of Contents
Occidental Petroleum Corporation (Oxy) is an international petroleum and chemical company. It operates through three segments: Oil and Gas, Chemical, and Midstream and Marketing. The Oil and Gas segment explores for, develops, produces, transports, purchases and markets crude oil, natural gas liquids (NGLs) and natural gas. The Chemical segment manufactures and markets basic chemicals; vinyls; performance chemicals; polymers; caustic soda; chlorinated organics; potassium chemicals; chlorine products; chlorinated isocyanurates (CIs); sodium silicates (SSIs); asphalt emulsions (AEs); nitrates (NITRATES); other fertilizers such as urea ammonium nitrate etc.; natural gas derivatives including ethane propane normal butane iso-butane etc., coal derivatives including methanol dimethyl ether etc., recycled carbon products such as activated carbon wood chips charcoal etc., derivative products such as maleic anhydride styrene gums epoxy resins etc.. The Midstream & Marketing segment gathers processes transports stores purchases
Founded in 1920, Occidental Petroleum Corporation (Occidental or Oxy) is an international petroleum and chemical company.
You may be wondering, “What does this company do? What’s their business model?” Well, Oxy was founded in 1920 and is an international petroleum and chemical company headquartered in Houston, Texas. It operates in 32 countries across five continents and has over 20,000 employees worldwide.
Occidental has a market cap of $84 billion and a price-to-earnings ratio of -8.2. It is headquartered in Houston, Texas but has locations across the United States and around the world.
The company’s market cap is $84 billion, and it has a price-to-earnings ratio of -8.2. It is headquartered in Houston, Texas but has locations across the United States and around the world.
In addition to its exploration and production activities, Occidental also operates refineries (like its Olefins 1 facility in California) that refine crude oil into chemicals like ethylene and propylene. These chemicals then serve as feedstocks for manufacturing plastics or other industrial products. In 2016, these operations accounted for over half (52%) of Occidental’s total revenues; meanwhile oil & gas extraction made up just under three-quarters (73%) of this revenue stream during the same period.*
Occidental operates in the following three segments: Oil and Gas, Chemical, and Midstream and Marketing.
- The oil and gas segment explores for, develops, produces, transports and markets crude oil, natural gas liquids (NGLs) and natural gas.
- The chemical segment manufactures basic petrochemicals (benzene, toluene and xylene), ammonia, adiponitrile and caustic soda from naphtha-based feedstocks; processes propylene into polypropylene; manufactures ethylene glycol from ethane; manufactures specialty chemicals including methyl tertiary butyl ether (MTBE), methanol and acetone on a contract basis at third party facilities or its own facilities.
- The midstream and marketing segment transports petroleum products by pipeline to customers in North America; gathers NGLs from field gathering systems in Texas Panhandle; markets refined products primarily through wholesale channels in Oklahoma City market area.
The Oil and Gas segment explores for, develops, produces, transports, purchases and markets crude oil, natural gas liquids and natural gas.
The Oil and Gas segment explores for, develops, produces, transports, purchases and markets crude oil, natural gas liquids and natural gas. The company’s exploration and production activities occur in the United States (including the Gulf of Mexico), Canada (including the Alberta oil sands area) and Latin America. The company’s production facilities are located in California; Texas; Louisiana; Wyoming; Oklahoma; Kansas; Colorado; New Mexico; North Dakota/Montana region of Western Canada (the Alberta oil sands area); Venezuela/Guyana region of South America. Its transportation network includes pipelines in California (the San Joaquin Valley), Wyoming (the Powder River Basin) and Canada that connect with other pipeline systems transporting products to refineries or storage facilities along these routes or to third-party pipelines for delivery to market. As of December 31st 2016 it had approximately 3 million barrels per day capacity available on its U.S.-based transportation systems at an average cost per barrel transported ranging from $2-$15 depending on location within system as well as access point into larger regional networks such as Colonial Pipeline Company LP which provides access links into Houston refining hub via its Line 1 Capacity Enhancement Project completed during 2014 through 2017 period with incremental increases beginning October 2017 through 2021 timeframe when maximum capacity is achieved.”
Occidental is one of the largest U.S. oil and gas producers with substantial international operations.
The company has a market cap of $84 billion and operates in the following three segments: Oil and Gas, Chemical, and Midstream and Marketing.
The company’s strategy is to maximize cash flow by focusing on its core assets while continuing to acquire properties that fit its growth profile. The company has been successful in doing this since 2003 when it sold off non-core assets such as fertilizer plants in order to focus on its current business model of exploration, production and marketing activities within the energy sector
The Chemical segment manufactures and markets basic chemicals; vinyls; performance chemicals; polymers; caustic soda; chlorinated organics; potassium chemicals; chlorine products; chlorinated isocyanurates; sodium silicates; asphalt emulsions; nitrates; other fertilizers; natural gas derivatives, coal derivatives, recycled carbon products and derivative products.
The Midstream and Marketing segment gathers, processes, transports, stores, purchases and markets oil, condensate, natural gas liquids (NGLs), gases (including carbon dioxide) environmental services solutions to customers in North America and internationally.
Its products include crude oil gathering systems; crude oil processing systems; natural gas processing plants; NGL fractionation plants; natural gas storage facilities and associated midstream assets; an international marketing business that includes a global trading desk in Houston dedicated to optimizing the company’s physical market positions as well as supporting e-commerce activities for its integrated marketing business globally. The company’s integrated marketing operations also include a retail network of more than 1 million branded fueling locations primarily under the ARCO brand name through joint ventures with BP plc (BP) or its affiliates covering approximately 1 billion consumers worldwide at year end 2018.
Conclusion
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