u/Safety-International 5.0 2 ideas

OXY's current $62B market cap implies a profit of only ~$11/barrel on its 5 billion barrels of reserves, pricing oil at roughly $60/barrel. Oil is expected to stay above $90 due to ongoing geopolitical conflicts, meaning OXY will generate significantly more cash flow than currently priced in. Go long OXY, as every $11 increase in crude above $60 theoretically adds another multiple to the company's intrinsic value. A sudden resolution to global conflicts causing oil prices to crash below $60, or unexpected increases in extraction costs.

The author is "all in on oil" and holds a basket of energy tickers including XOM, OXY, OIH, SM, and DVN. The market is not pricing in pessimistic geopolitical scenarios or escalations, creating a systemic undervaluation across the oil sector. Go long the broader energy sector as a macro play on sustained high oil prices ($90+). Macroeconomic recession destroying oil demand, or rapid de-escalation of global wars.