American Occidental Petroleum Corporation Stock Outdo

American Company Occidental Petroleum Corp. Stock bounced back 2.72% to $25.29 Wednesday. This proved to be an all-around favorable trading session for the Stock market, with the S&P 500 Index SPX rising 0.19% to 4,195.99 and the Dow Jones Industrial Average DJIA rising 0.03% to 34,323.05.

Occidental Petroleum Corp. closed $7.23 short of its 52-week high ($32.52), which the company achieved on March 5th. The Stock outperformed some of its competitors Wednesday, as Exxon Mobil Corp. XOM rose 1.17% to $58.94, Chevron Corp. CVX rose 0.24% to $104.12, and ConocoPhillips COP rose 0.98% to $55.42. Trading volume (14.1 M) remained 3.0 million below its 50-day average volume of 17.0 M.

According to Goldman Sachs Occidental Petroleum Corp should be able to catch up to other energy companies as higher oil prices help the exploration company pay down its debts. Energy Stock have rallied since the start of November as the U.S. economic recovery has come into view, but Occidental has lagged behind its peers despite rising 46% in 2021.

Goldman pointed out that the Stock has underperformed its sector year to date and dramatically since its 2019 acquisition of Anadarko Petroleum. The company saw a mere $0.5 billion in divestitures, relatively small given the company’s recent divestitures. The majority of this came from WES unit sales. The company saw $1.6 billion in FCF generation for the quarter, representing the highest quarterly FCF for the company since 2011, cash flow which it can use to pay off debt.