1 Energy Stock With a Big Catalyst in 2014

Occidental Petroleum had a fairly solid 2013. The company kept pace with the market for most of the year, only recently dropping off and underperforming. That could change in 2014 as the company has a massive catalyst that could unlock billions in value and send its shares higher.

Many analysts on Wall Street see the company selling its oil and gas operations in the Middle East and North Africa in the year ahead. These operations are worth an estimated $22 billion, which is more value than investors currently ascribe to Occidental Petroleum credit for the assets. Many analysts suggest the company could sell a partial stake in these assets for $8-$10 billion and use that cash to buy back stock and pay down some of its debt.

Analysts at Merrill Lynch, for example, see Occidental Petroleum\’s shares being worth up to $130 if the company makes such a move. In fact, Merrill Lynch recently named Occidental Petroleum as one of its top energy stocks for 2014. Others aren\’t quite as bullish as the average price target for the stock is $108.45 for the next 12 months.

Excellent!! In my most The Simpson’s favorite voice.

via 1 Energy Stock With a Big Catalyst in 2014 – DailyFinance.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s