Financial Statement Analysis and Stock Valuation of Oxy

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INDIVIDUAL ASSIGNMENT FIN202|
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TOPIC: Financial statement analysis and stock valuationLECTURE: PHAM LIEN HASTUDENT: HOANG MY LINH ROLL NUMBER: FB00073
CLASS: FB0609 - FPT University|
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Contents
I.INTRODUCTION2
1.Main production2
2.Segment market2
3.Vision2
4.Strategy business2
II.Analysis3
1.Common – size finance statement3
a.Common – size balance sheet3
b.Common – size Income statement5
c.Ratio6
d.Dupont7
2.Competitor7
III.Analysis of company’s stock8
1.Stock8
2.Grow rate8
3.Require rate of return10
4.Intrinsic value of stock10

I. INTRODUCTION
1. Main production
Occidental Petroleum Corporation (OXY) engages in the exploration and production of oil and gas properties in the United States and internationally. The company operates in three segments: Oil and Gas; Chemical; and Midstream, Marketing, and Other. The Oil and Gas segment explores for, develops, produces, and markets oil and condensate, natural gas liquids (NGLs), and natural gas. Its domestic oil and gas operations are located in California, Colorado, Kansas, Montana, New Mexico, North Dakota, Oklahoma, Texas, Utah, and West Virginia; and international oil and gas operations are located in Bahrain, Bolivia, Colombia, Iraq, Libya, Oman, Qatar, the United Arab Emirates, and Yemen. 2. Segment market

The Chemical segment manufactures and markets basic chemicals, including chlorine, caustic soda, chlorinated organics, potassium chemicals, chlorinated isocyanurates, sodium silicates, calcium chloride, and ethylene dichloride products; vinyl comprising vinyl chloride monomer and polyvinyl chloride; and other chemicals, such as resorcinol. The Midstream, Marketing, and Other segment gathers, treats, processes, transports, stores, purchases, and markets oil, condensate, NGLs, natural gas, and carbon dioxide. This segment also trades around its assets consisting of pipelines and storage capacity, as well as oil and gas, and other commodities; and engages in the power generation activities. The company was founded in 1920 and is headquartered in Los Angeles, California 3. Vision

Oxy is well-positioned for success in today’s dynamic and complex business environment. We strive to manage production costs effectively and to achieve exemplary safety and environmental performance. Oxy invest only in projects that meet the company’s stringent financial criteria and complement existing assets. Reflecting both the effectiveness of this strategy and the quality of our assets, Oxy is among the industry’s most profitable producers. 4. Strategy business

Strategic acquisitions near established producing locations further expand our position in our three core geographic regions Improved recovery and enhanced recovery techniques extend the life of mature oil and gas fields and help to extract some of the hardest-to-recover reserves Exploration in targeted areas reveals previously untapped oil and gas reservoirs II. Analysis

1. Common – size finance statement
a. Common – size balance sheet
Period Ending | Year 2011 | Year 2010 | Year 2009 |
|  | % of Assets |  | % of Assets |  | % of Assets | Assets |  |
Current Assets |  |  |  |  |  |  |  |
 | Cash And Cash Equivalents | 3,781,000 | 6.30%| 2,578,000 | 4.92%| 1,224,000 | 2.77%|  | Short Term Investments | 916,000 | 1.53%| 900,000 | 1.72%| 1,075,000 | 2.43%|  | Net Receivables | 5,395,000 | 8.99%| 5,032,000 | 9.60%| 4,092,000 | 9.25%|  | Inventory | 1,069,000 | 1.78%| 1,041,000 | 1.99%| 998,000 | 2.26%|  | Other Current Assets | 381,000 | 0.63%| 3,508,000 | 6.69%| 3,218,000 | 7.28%| Total Current Assets |  | 11,542,000 | 19.22%| 13,059,000 | 24.91%| 10,607,000 | 23.98%| Long Term Investments |  |...
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