APA vs OXY: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: APA is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. APA and OXY share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined APA and OXY exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

APA Corporation is the Houston-based parent of Apache, an independent exploration and production company. Its asset base spans the Permian Basin in West Texas (its core cash generator, expanded through the 2024 Callon Petroleum acquisition across the Delaware and Midland basins), high-margin production sharing contracts in Egypt operated with partners including the Egyptian government and Sinopec, a 50% interest in the deepwater Block 58 in Suriname developed alongside operator TotalEnergies, and legacy North Sea assets it is winding down. As of year-end 2025 the company reported roughly 1,056 million barrels of oil equivalent of proved reserves, about 74% of which sat in the United States.

Full APA guide

Occidental Petroleum (Oxy) is a large US-based oil and gas company with three main businesses. Upstream exploration and production is the core: Oxy finds and produces crude oil and natural gas, with a flagship position in the Permian Basin, the most prolific US oil field, plus operations in the Rocky Mountains, the Gulf of Mexico, and internationally. Its chemicals arm, OxyChem, is a major producer of chlor-alkali and PVC-related chemicals. Oxy is also building a carbon-management business through its 1PointFive subsidiary, developing direct air capture (DAC) facilities that pull CO2 from the atmosphere. The company makes most of its money selling oil and gas, so cash flow swings with commodity prices. Oxy is notable for Berkshire Hathaway's large ownership stake and for its 2019 acquisition of Anadarko, which left it heavily indebted. Headquartered in Houston, Texas, Oxy has since prioritized cutting debt and returning cash, while positioning carbon capture as a long-term option.

Full OXY guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• APA drivers: Permian cash engine and Callon integration; Egypt high-margin production.
• OXY drivers: Permian Basin scale; Debt reduction and capital return.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: APA's results are directly tied to oil and natural gas prices, so a downturn in commodity prices can sharply reduce revenue, cash flow, and the pace of shareholder returns. For OXY, oxy's earnings and cash flow are highly sensitive to oil and gas prices, which are volatile and outside its control.

Pick APA if you believe its drivers more; OXY if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the APA and OXY guides.

APA. APA trades at a low single-digit-to-high-single-digit earnings multiple typical of a cyclical E and P producer, reflecting both cheap-looking commodity earnings and the market's discount for price volatility. Q1 2026 beat estimates on revenue and adjusted EPS, helped by lower lease operating expenses and U.S. oil output above guidance, yet the stock still fell after the report. Figures are approximate and move with oil and gas prices.

OXY. Oxy's valuation is dominated by oil-price sensitivity and balance-sheet repair. Strong free cash flow at favorable commodity prices funds debt reduction and capital return, while the carbon-capture business adds long-dated optionality. The financial profile is that of a leveraged, cyclical Permian producer working to deleverage.

Headline figures (approximate, Q1 2026): APA shows revenue (ttm) ~$9B, q1 2026 revenue ~$2.33B, q1 2026 adjusted eps ~$1.38, market cap ~$11-15B; OXY shows revenue (ttm) ~$27 billion, operating margin ~20%, highly oil-price dependent, production ~1.2+ million barrels of oil equivalent per day, free cash flow strong at mid-cycle oil prices.

APA and OXY are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined APA and OXY exposure against your real portfolio. It is not an investment adviser.