$AKRBP (-1,4%) vs $OXY (+0,72%)
I have held both shares in my portfolio for several months. No longer see any prospects for Occidental at the moment.
The main difference that explains the better performance of Aker BP (AKRBP)-shares compared to Occidental Petroleum (OXY) lies in their business models and financial structure 💰 .
Main differences
- Production costs (break-even cost):
- Aker BP has one of the lowest production costs in the industry, with a break-even price for the portfolio (full-cycle portfolio break-even) of around 35-40 US dollars per barrel. This enables the company to remain profitable even at lower oil prices and generate significant free cash flows.
- Occidental Petroleum focuses on shale oil production, which often has higher and less predictable operating costs (although OXY is actively lowering these), and has steeper production decline curves.
- Geographic focus:
- Aker BP is a "pure-play upstream company with high-quality assets located on the Norwegian Norwegian continental shelf (e.g. Johan Sverdrup field). This region is characterized by a stable political environment and a predictable production profile.
- Occidental Petroleum focuses mainly on the assets in the Permian Basin in the USA.
- Dividend policy and debt:
- Aker BP offers a very high dividend yield (over 10 %) and pursues a policy of stable stable dividend growth (at least 5% annually), which makes the company attractive to income-oriented investors. The company also has a low level of debt (low leverage).
- Occidental Petroleum has a higher debt levelpartly due to large acquisitions (including the recent CrownRock acquisition). Although OXY is actively working to reduce this debt and is increasing dividends, the high level of debt makes the company more vulnerable to falling oil prices.
Aker BP is viewed by investors as a more resilient oil company due to its industry-leading cost structure and generous dividend policy. more resilient and more resilient and more profitable player, which gives its shares a better performance in volatile oil prices.
