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Occidental Petroleum Outperformed Oil-Weighted Stocks

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Oil-weighted stocks’ returns

On May 22–29, our list of oil-weighted stocks fell 7.2%—compared to the 4.2% fall in US crude oil July futures. On average, our list of oil-weighted stocks underperformed US crude oil prices. Trade war concerns might have intensified the fall in these energy stocks.

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Occidental Petroleum outperformed oil-weighted stocks

Let’s take a look at the oil-weighted stocks that fell the least in the last four trading sessions:

  • Occidental Petroleum (OXY) fell 1.5%.
  • Oasis Petroleum (OAS) fell 2.8%
  • Pioneer Natural Resources (PXD) fell 4.3%.

Only Occidental Petroleum had a negative correlation with oil prices among our list of oil-weighted stocks. In May, the discount between Midland and Magellan East Houston WTI expanded ~$0.6 from last month, which could boost Occidental Petroleum’s midstream earnings—a positive development for the company’s stock prices amid weaker oil prices.

Underperformers among oil-weighted stocks

Now, let’s look at the oil-weighted stocks that underperformed their peers and US crude oil prices in the last four trading sessions:

  • Callon Petroleum (CPE) fell 10.3%.
  • Carrizo Oil & Gas (CRZO) fell 11.5%.
  • California Resources (CRC) fell 14.3%.

These three stocks had correlations of at least 60% with US crude oil active futures. All of these oil-weighted stocks are part of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP). They operate with production mixes of at least 60% in liquids based on the latest quarterly production data.

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