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3 Energy Stocks to Buy Now for the Prolific Permian Basin

The trio of OXY, CXO & PXD are Permian powerhouses

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Occidental Petroleum

energy-stocks-oxy-stockLike PXD, Occidental Petroleum (OXY) is a monster landholder in the Permian. Overall, OXY owns nearly 2.5 million acres in the field — more than most other energy stocks. And given that acreage, OXY is the no. 1 producer of Permian crude oil and natural gas. In 2012, Oxy managed to produce nearly 43 million barrels of oil from its conventional wells. That’s nearly double PXD’s production.

Like Pioneer, OXY is beginning to use horizontal drilling across its Permian acreage. Occidental has expanded into the hot Cline and Wolfcamp regions within the Permian. Those areas have already yielded prime production for a variety of other energy stocks. Given OXY’s expertise in EOR techniques, that unconventional acreage could yield some huge results for the firm.

The potential for OXY stock is even more enticing when you consider the upcoming split into two separate firms. Occidental “proper” will be a lean, mean Permian machine. Investors may want to buy shares now to take advantage of the future gains caused by the separation.

Article printed from InvestorPlace Media,

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