Bank of America Merrill Lynch Has Buy On Occidental Petroleum

Bank of America Merrill Lynch is out with a research report on Occidental Petroleum Corp. (NYSE: OXY) after it reported earnings. It has a Buy rating and a $138 price target on shares.In a note to clients, Bank of America Merrill Lynch writes, "OXY adjusted EPS of $2.24 beat consensus of $2.17 largely from chemicals, with E&P in line with our expectations despite lower sales vs. production. Headline oil and gas production was light at 715,000 boepd vs. 725,000 boepd guidance with the delta almost entirely from lower entitlements on higher oil prices in the Mid East. US production matched guidance, with California up slightly (4,000 boepd). At $253m, Chemicals had another solid quarter and alongside lower interest costs appears the main source of the beat. Underlying tax rate was in line at 38%. Following the 2Q11 results, we are changing our estimates modestly"Shares of OXY lost $2.54 yesterday to close at $104.83.