10 Worst Performing Blue Chip Stocks in 2024

7. Occidental Petroleum Corporation (NYSE:OXY)

Year to Date Return: -10.16%

Number of Hedge Fund Holders: 62

Occidental Petroleum Corporation (NYSE:OXY) is an energy giant that acquires, explores, and develops oil and gas properties. The company has had a rough go in recent months, resulting in the stock shedding more than 10% in market value, making it one of the worst-performing blue chip stocks in 2024, given that the S&P 500 is up by about 20%.

Oil prices are declining despite strong U.S. demand, and OPEC+’s expanding its production cuts through 2025 has hurt the company’s core business. The entire oil and gas production industry has been negatively impacted by the drop in crude oil prices over the past year, which went from about $90 per barrel to $70 per barrel.

Despite the oil price slump, Occidental Petroleum Corporation (NYSE:OXY) owns roughly 2.8 million net acres of land in the Permian Basin, where it is one of the biggest producers. It recently acquired CrownRock for $12 billion, solidifying its position. The acquisition resulted in a 33% increase in Occidental’s inventory of breakeven locations with prices below $40 per barrel.

Occidental Petroleum Corporation (NYSE:OXY) issued $9.1 billion in new debt and invested $1.2 billion in existing debt to finance most of its CrownRock deal. Its short-term goal is to pay off debt with excess free cash flow. Within a year of closing that deal, the company wants to reduce debt by $4.5 billion by selling assets and using free cash flow. Even as it tries to reduce its huge debt burden, the company still yields 1.63% on dividends.

By the end of Q2 2024, the number of hedge funds with stakes in Occidental Petroleum Corporation (NYSE:OXY) increased to 62, up from 61 in the previous quarter. This modest rise indicates a growing interest in Occidental Petroleum among institutional investors. The total value of these stakes is significant, surpassing $18.50 billion.