u/Book-m_Danno ·
Reddit — r/ValueInvesting
· July 21, 2026 at 19:50
· ⬆ 15 pts
· 💬 15 comments
| View on Reddit ↗
AI Summary
Summary
The post questions why OXY trades at a roughly one-third discount to peers (COP, EOG) on EV/EBITDA and Market Cap/Levered FCF, noting it is a Buffett favorite.
The author implies a potential undervaluation but asks for logical explanation rather than presenting a full thesis.
Quality assessment: Noise / speculation – it is a cursory observation without depth or data, more a prompt for discussion than a researched DD.
OXY trades at lower EV/EBITDA and Mkt Cap/Levered FCF multiples than COP and EOG; Berkshire Hathaway holds a large position. Persistent valuation gap may close as market re‑rates OXY if operational or macro headwinds fade. OXY appears cheap among large‑cap E&P names and has a high‑quality sponsor; merits a watchlist position. Oil price collapse, Buffett exiting, poor capital allocation, or sector rotation out of energy.