Occidental $OXY Petroleum Corporation OXY announced that it has discovered oil at the Bandit prospect in the Gulf of America. Drilling at Green Canyon Block $SQ 680 confirmed extensive, high-quality Miocene sands saturated with oil throughout the entire section.
This new discovery could be tied back via subsea infrastructure to a nearby facility operated by Occidental Petroleum, along with other local assets, allowing it to leverage the existing nearby infrastructure to develop the new find.
Occidental Petroleum is the operator of this field with 45.375% working interest alongside partners Chevron $CVX U.S.A. Inc. with 37.125% and Woodside Energy with 17.5% interest.
The new discovery of high-quality oil in the Gulf of America will definitely boost production volumes of Occidental Petroleum in the long-term. Occidental Petroleum expects production from the Gulf of America in the range of 126-134 oil equivalent per day (Mboe/d) in first-quarter 2026 and 129-137 Mboe/d for 2026.
At the end of 2025, Occidental Petroleum had eight active operated platforms and 14 active fields in the Gulf of America region and this new discovery will boost its production volume and cash flow generation from the region. Last year, the Gulf of America assets of OXY achieved strong operational performance.
Occidental Petroleum’s initiatives to develop domestic resources reduce its exposure to geopolitical risks.
How OXY’s Peers Are Exploring the Gulf of America?
The Gulf of America is a key energy hotspot, supported by its abundant oil and natural gas reserves. Several energy firms are intensifying exploration efforts, using advanced technologies to tap these resources, enhance output and reinforce long-term supply outlooks for global energy demand.
Other industry players like BP $BP plc BP and Shell $SHEL plc SHEL have shown strong interest in the Gulf of America, attracted by its rich oil and gas reserves. BP’s upcoming projects in this region include Kaskida and Tiber. Shell is active in deepwater asset development and involved in the development of the Sparta field and participation in the Daenerys discovery.
Both companies are actively investing in exploration and production activities, aiming to expand their portfolios, enhance output and capitalize on the region’s long-term energy potential.
Occidental Petroleum’s Earnings Estimates Are Going Up
The Zacks Consensus Estimate for Occidental Petroleum’s 2026 and 2027 earnings per share indicates an increase of 376.92% and 119.29%, respectively, in the past 60 days.
Image Source: Zacks Investment Research
OXY’s Price Performance
Occidental Petroleum’s shares have gained 54.3% in the past year compared with the Zacks Oil and Gas-Integrated-United States industry’s rise of 39.6%.
Image Source: Zacks Investment Research
Zacks Rank of OXY
Occidental Petroleum currently sports a Zacks Rank#1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
BP p.l.c. (BP): Free Stock Analysis Report
Occidental Petroleum Corporation (OXY): Free Stock Analysis Report
Shell PLC Unsponsored ADR (SHEL): Free Stock Analysis Report