Can anyone give me a coherent reason why a share of this stock is trading for less than a barrel of crude.
When this co. was trading for over $100 per, oil was near or close to today's price.
Where has "The Ox" gone wrong?
They had a real capital cost problem, spending way too much too drill wells. That is a lack of attention to detail. In their conference calls they were talking about how they have been improving. I think the analysts want to see some consistent results.
There are others who think the value will go up if they either spin off or sell both chemicals and midstream. These businesses are not as big as refining & marketing was to Marathon, ConocoPhillips or Hess. Also OXY in the last call spoke about how the midstream allows them to market their own product and that they get more for their oil than they would if they let someone else do it.
What I have heard or read is that OXY is too confusing as to what it does. It has chemicals (mostly PVC) and some midstream. It gets oil overseas, but mostly at home. It is too spread out. I don't see this as a problem but apparently analysts do. I would think this is a $90-100 stock.