As the legal successor to Diamond Shamrock Chemical, which intentionally dumped industrial waste into the river for decades, Occidental Petroleum is liable for the cleanup, according to Bloomberg. The agreement for the payment still requires approval from a judge and the New Jersey Department of Environmental Protection.
If the agreement is approved, Occidental Petroleum said it will seek reimbursement from Maxus Energy, a subsidiary of YPF (YPF) . Occidental Petroleum says YPF is financially for the claims against it regarding the Passaic River.
TheStreet Ratings team rates OCCIDENTAL PETROLEUM CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate OCCIDENTAL PETROLEUM CORP (OXY) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, increase in net income, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow."