Occidental Petroleum's Bold $1.1B Move Into DAC: Analyst Deciphers The Future Impact On Revenue And Debt
Portfolio Pulse from Shivani Kumaresan
Occidental Petroleum Corp (OXY) has acquired existing technology provider Carbon Engineering Ltd for $1.1 billion to expedite future direct air recapture (DAC) projects. The acquisition is expected to generate incremental revenue from technology licensing and royalties. The deal also reinforces OXY's commitment to DAC technology in its low carbon ventures. OXY has a DAC specific construction partnership with Worley Ltd (WYGPF).
August 16, 2023 | 5:37 pm
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POSITIVE IMPACT
Occidental Petroleum's acquisition of Carbon Engineering is expected to generate incremental revenue and reinforce its commitment to low carbon ventures.
The acquisition of Carbon Engineering by OXY is a strategic move to expedite future DAC projects. This is expected to generate incremental revenue from technology licensing and royalties, and reinforces OXY's commitment to low carbon ventures. This could potentially increase investor confidence in OXY's long-term strategy and sustainability efforts, positively impacting its stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Worley Ltd's partnership with Occidental Petroleum for DAC specific construction is expected to grow alongside the DAC program.
Worley Ltd's partnership with OXY for DAC specific construction is expected to grow alongside the DAC program. This could potentially increase the company's revenue and positively impact its stock price.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50