Occidental Petroleum Surges 2.85% on $510M Volume Surge to 198th Market Activity Rank as Permian Basin Gains Outpace Sector

Occidental Petroleum (OXY) rose 2.85% on August 22, 2025, with a trading volume of $0.51 billion, marking a 73.97% increase from the previous day and ranking 198th in market activity. The stock has outperformed its sector, gaining 7.9% over three months compared to the Zacks Oil and Gas-Integrated-United States industry’s 6% rise, driven by its strategic position in the Permian Basin and international operations.

OXY’s domestic operations in the Permian Basin, a key U.S. oil-producing region, provide high-quality, low-cost output, contributing 768–784 thousand barrels of oil equivalents per day in 2025. International assets in Qatar, Oman, and the UAE are expected to add 233 thousand barrels of oil equivalents per day to total production. The company has reduced debt by $7.5 billion over 13 months, lowering annual interest expenses by $410 million, and plans to divest non-core assets to further strengthen its balance sheet.

Despite these positives, OXY faces risks from un hedged commodity price exposure, which could impact earnings if prices decline. Its return on equity (13.78%) trails the industry average (14.57%), and its valuation metrics, such as a 5.35x EV/EBITDA multiple, suggest a premium to peers. Analysts highlight its robust U.S. operations and growing reserves as long-term strengths but caution against volatility in energy markets.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to 2025 yielded a 31.52% total return, with a 0.98% average daily gain. The Sharpe ratio of 0.79 indicates acceptable risk-adjusted returns, though the maximum drawdown of -29.16% underscores susceptibility during market downturns.