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

"Occidental reduced its Permian spending plan from $3.9 billion to $3.1 billion while maintaining production growth, enabled by a pivot to child wells, enhanced oil recovery techniques, and structural productivity gains. Wells Fargo believes OXY can produce slightly ahead of guidance in 2026 and resume accelerated growth in 2027, returning capital spending to roughly $3.5 billion."

"New Permian well costs are down 16% versus 2024, with cumulative savings since 2023 totaling approximately $2 billion in annual oil and gas costs. With 84% of the total resource base breaking even below $50 per barrel, the Permian engine generates durable free cash flow across commodity cycles."

"WTI recently surged to $94.65 per barrel as of March 9, 2026, driven by geopolitical disruptions. Piper Sandler raised its mid-cycle crude price assumption to $75 per barrel from $70. With OXY's Q4 realized crude at $59.22 per barrel, higher realizations flow directly to free cash flow."

Occidental Petroleum shares have gained 35% year-to-date, with Wells Fargo and Piper Sandler issuing simultaneous upgrades to Overweight, targeting $69 and $66 respectively. Wells Fargo analyst Sam Margolin upgraded from Underweight, citing peer-leading oil price sensitivity and Permian capital efficiency. Occidental reduced Permian spending from $3.9 billion to $3.1 billion while maintaining production growth through child wells and enhanced oil recovery techniques. The company achieved $2 billion in cumulative annual cost savings since 2023, with 84% of resources breaking even below $50 per barrel. Rising oil prices, currently at $94.65 per barrel, combined with lower near-term capital spending and higher future output create a compounding efficiency story supporting the bull case.

Read at 24/7 Wall St.