Occidental Petroleum Price Target Rises to $66 with $800M Capex Cut
Piper Sandler upgraded Occidental Petroleum to Overweight, boosted its mid-cycle WTI oil price forecast by $5 to $75/bbl, and raised the price target to $66 from $54. The firm cited $800 million in 2026 capital spending cuts for similar production levels, driven by sustainable efficiency gains in the Delaware Basin.
1. Piper Sandler Upgrade
Piper Sandler upgraded Occidental Petroleum from Neutral to Overweight and lifted its mid-cycle WTI oil forecast to $75 a barrel from $70, raising the price target on the stock to $66 from $54 based on tighter supply balances and potential Middle East disruptions.
2. Capital Efficiency Improvements
Occidental’s 2026 guidance reflects approximately $800 million less capital spending while maintaining projected production, as enhanced drilling and completion efficiencies reduce costs and support sustained output.
3. Delaware Basin Operations
The firm highlighted Occidental as one of the strongest operators in the Delaware Basin, noting solid production performance despite declines in 2025, underscoring operational resilience and execution capabilities.
4. Outlook for Future Investment
Piper Sandler warned that ongoing Iran conflict risks and tighter spare capacity may require higher futures prices to incentivize new production investment, suggesting medium-term support for crude values.