10:42 ET - Occidental Petroleum's valuation is difficult to reconcile with the quality of its underlying assets and cash flow power through a cycle, Goldman Sachs analysts say in a note. There are four parts to the oil-and-gas producer's story that are underappreciated, the analysts says. They note Occidental's free-cash flow magnitude that can be returned to shareholders and to redeem preferred equity, as well as an underappreciation of its upstream portfolio. The analysts also cite the company's chemicals business as a consistent source of cash flow and greater confidence in higher carbon credits from voluntary markets in the near term as well as a path to stated cost reduction targets in the long term that can unlock value for the business. They upgrade Occidental to buy from neutral. Shares gain 1.5% to $65.72. (denny.jacob@wsj.com; @pennedbyden)

(END) Dow Jones Newswires

February 14, 2023 10:42 ET (15:42 GMT)

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