10 Most Profitable Energy Stocks To Invest In

8. Occidental Petroleum (NYSE:OXY)  

TTM Net Income: $3.89 Billion  

5-Year Net Income CAGR: 3.78%  

Number of Hedge Fund Holders: 62  

Occidental Petroleum (NYSE:OXY) is a US based oil and gas exploration company with operations in the U.S., Middle East, and Latin America. The company is known for its strong presence in shale oil production, particularly in the Permian basin in the southwestern part of the United States.

Occidental Petroleum’s (NYSE:OXY) acquisition of CrownRock at the end of FY 2023 for approximately $12 billion has added approximately 170,000 barrels of oil equivalent per day to its production. The acquisition was conducted mainly because of CrownRock’s assets in the Midland basin, which are complementary to Occidental Petroleum’s (NYSE:OXY) focus in the Permian basin. The transaction was completed at the beginning of August, and the outlook for production growth for Occidental Petroleum (NYSE:OXY) is favorable.

In Q2, Occidental Petroleum (NYSE:OXY) generated $1.30 billion in free cash flow, up 83% quarter over quarter, a large portion of the free cash flow went into debt repayments, and the company has guided for $1.9 billion for incremental debt reductions in the month of August, following the close of the CrownRock acquisition.

As of June 30, Occidental Petroleum (NYSE:OXY) reported a TTM net income of $3.89 billion, an increase of 3.78% over the last 5 years. Occidental Petroleum’s (NYSE:OXY) diversified portfolio of energy assets, including oil & gas, chemical, midstream, and low-carbon energy investments makes it well-positioned to benefit from the growing demand for oil and gas.