January was a good month for investors who owned Occidental Petroleum (OXY +6.26%), as the stock rose 10%. That's not actually so unusual, given the inherent volatility of the energy sector.
However, the stock lurched higher again in February after it reported earnings. Here's what you need to know about January and the company's February investor update.
Oxy was just going along for the ride
While 10% is a very nice advance in a single month, it actually was a bit of a letdown. That's because oil prices rose even more, with the key U.S. benchmark West Texas Intermediate Crude rising 12% and Brent Crude up 17%. So, when you step back, Oxy's stock price kind of trailed along with the broader oil market.
Image source: Getty Images.
Following oil prices up and down is roughly what you would expect of an energy stock. Oil and natural gas prices are highly volatile over time, with news flow often driving significant price swings. In early 2026, there have been notable geopolitical events that have affected oil prices.
That said, the company reported fourth-quarter 2025 earnings on Feb. 18. That was a bit later than some of the energy sector's larger and more prominent companies, including ExxonMobil and Chevron. The shares of both these oil giants outperformed Occidental in January. And both reported fairly strong earnings.
Oxy catches up and then some
Following the earnings release, however, the tables have turned. After a very quick rally, it is now outperforming both Exxon and Chevron year to date, as of this writing. The big story was that Oxy beat analyst earnings expectations by a wide margin.
NYSE: OXY
Key Data Points
The negative in the quarter was relatively weak oil prices. That dragged down year-over-year results. However, strength in the company's midstream operations helped to offset that weakness more than expected.
And with oil prices strengthening in 2026 amid geopolitical concerns, it seems highly likely that upcoming earnings will include some good news. Given that Occidental, which recently exited the chemicals business, is more production-focused than either Exxon or Chevron, which are more diversified businesses, it is likely to benefit more from rising energy prices.
One month is not enough to go on
That said, one or two months of stock performance doesn't really tell you much about a company like Occidental. As noted above, oil and natural gas prices are highly volatile, and it is more leveraged to these commodities than some of the other large energy companies.
If oil prices suddenly start to fall, Occidental Petroleum's share price is likely to follow suit. It's most appropriate for investors who have a constructive view of energy prices. Other energy investors would probably be better off with more diversified companies, such as Chevron or Exxon.
