Blackrock (NYSE:BLK) and Occidental Join Hands for Stratos

Asset management and investment company Blackrock (NYSE:BLK) has decided to invest $550 million in energy giant Occidental Petroleum’s (NYSE:OXY) Stratos project in West Texas. Stratos is poised to become one of the largest direct air capture (DAC) facilities in the world, extracting carbon dioxide directly from the air. Blackrock will invest money via its fourth global infrastructure fund in a joint venture being formed with Occidental’s 1PointFive subsidiary. The joint venture will become the owner of Stratos.

Roughly 30% of the construction on Stratos is completed to date, while the facility is set to go live by mid-2025. DAC captures CO2 emissions from the air and pushes them into the ground or reuses them in construction materials and other useful products, thus aiding the U.S.’ decarbonization goals. Stratos aims to capture 500,000 tonnes of carbon annually from the atmosphere.

Is Occidental a Good Buy?

The news of the joint venture with Blackrock comes as Occidental announced its third-quarter Fiscal 2023 results yesterday. OXY posted adjusted earnings of $1.18 per share, which declined compared to EPS of $2.44 in the prior-year quarter but was much higher than the consensus of $0.88 per share. Similarly, revenues of $7.4 billion fell 22.1% year-over-year but beat the analysts’ estimate of $7.05 billion.

On TipRanks, OXY stock has a Moderate Buy consensus rating based on five Buys, six Holds, and one Sell rating. The average Occidental Petroleum price forecast of $70.50 implies 17.1% upside potential from current levels. OXY stock has gained 2.7% in the past six months. 

Is BLK a Good Stock to Buy?

Based on 12 Buys and one Hold rating, BLK stock has a Strong Buy consensus rating. The average Blackrock price target of $772.85 implies 19.2% upside potential from current levels. Meanwhile, BLK stock has lost 6.9% so far this year.

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