Core Viewpoint - The energy sector is facing challenges due to economic scrutiny and uncertainties in U.S. trade policy, leading to fluctuating oil and gas prices, prompting investors to evaluate energy stocks for resilience and potential returns [1]. Chevron - Chevron is highlighted as a strong investment option, offering a high dividend yield of 4.9% and demonstrating resilience with only a 5% decline in stock price year-to-date [2][3]. - The company's global diversification and robust fundamentals make it appealing for long-term investment, with significant operations in upstream, downstream, and chemicals manufacturing [3]. - Major expansion projects, such as the Tengizchevroil oilfield in Kazakhstan and operations in the Gulf of Mexico, are expected to enhance production [4]. - Chevron targets an annual production growth rate of 6% to 8% for 2025 and 3% to 6% for 2026, with an anticipated increase in free cash flow to over $9 billion compared to $15 billion in 2024, based on a Brent crude oil price of $60 per barrel [5][6]. - The company plans to maintain its quarterly dividend of $1.71 per share and continue a large stock buyback program, supporting shareholder returns [6]. Occidental Petroleum - Occidental Petroleum, with a market capitalization of $36 billion, is smaller than Chevron but has a strong position in onshore oil and gas production, particularly in the Permian Basin [9][10]. - The company is diversified across chemicals, midstream infrastructure, and international assets, and is advancing its direct air carbon recapture facility [10]. - Despite a 22% decline in stock price year-to-date due to an intense investing spending plan, the stock is trading at attractive valuation metrics, under 12 times forecast 2025 EPS and 8 times free cash flow [11][12]. - Occidental may offer more upside potential if oil and gas prices rebound, making it a consideration for investors bullish on the energy sector [13]. Investment Decision - In the current macroeconomic environment, Chevron is considered the better energy stock due to its diversified asset base and higher-quality fundamentals, providing a more reliable option for investors while delivering solid dividend income [15].

My last article on Occidental Petroleum Corporation (NYSE: OXY ) stock was published two months ago by Seeking Alpha. More specifically, on February 18, 2025, I wrote an As you can tell, our core style is to provide actionable and unambiguous ideas from our independent research. If your share this investment style, check out Envision Early Retirement. It provides at least 1x in-depth articles per week on such ideas.We have helped our members not only to beat S&P 500 but also avoid heavy drawdowns despite th ...

Occidental Petroleum’s (OXY) share price has dropped 19.8% in the past month compared with its industry’s decline of 12.7%. In the same period, the Zacks Oil & Energy sector has declined 11.9%.OXY’s exposure to fluctuating commodity prices remains a concern. As of Dec. 31, 2024, there were no active commodity hedges in place, so if the commodity prices drop substantially, it can adversely impact Occidental’s performance.Price Performance (One Month)Image Source: Zacks Investment ResearchOther operators in t ...

Core Viewpoint - Warren Buffett's investment in Occidental Petroleum (OXY) is under significant pressure as the stock has dropped to its lowest level since February 2022, currently trading at $36.26, down 26% year-to-date, and underperforming the broader energy sector which is down about 12% [1][5]. Company Performance - Occidental Petroleum's stock has seen a decline from earlier 2025 highs above $50, marking a significant reversal in its performance [1]. - Berkshire Hathaway owns nearly 265 million shares of Occidental at an average cost of $54.20, resulting in an estimated paper loss of $4.7 billion, making it one of the most challenged equity holdings in Buffett's portfolio [4]. Market Conditions - The recent downturn in OXY is attributed to West Texas Intermediate (WTI) crude prices falling below $60 per barrel, influenced by fears of a global recession and new trade tensions due to U.S. tariffs on China [5]. - Despite stronger pricing reported in Q1, with Occidental realizing $71.07 per barrel for oil and a 92% surge in natural gas prices to $2.42 per Mcf, these gains have not alleviated market concerns [6]. Competitive Position - Analysts express caution regarding Occidental's performance, noting that the company lags behind industry peers in several areas, including a heavier debt burden, slower production growth, and significant spending on carbon-capture technology, which is capital-intensive [7]. - Occidental remains a focal point in Berkshire Hathaway's equity portfolio, with investors closely monitoring the upcoming earnings report scheduled for May 8 [8].

The Warren Buffett-owned oil stock's plunge presents an opportunity to buy.Shares of Occidental Petroleum (OXY -9.52%) crashed today and were trading 10% lower as of 12:20 p.m. ET.Ironically, Occidental Petroleum just revealed that it realized higher average prices for oil and gas in its first quarter versus the fourth quarter, which is good news for the company and its investors. Why did the stock then crash today? There are three things to keep in mind.Oil prices are fallingFirst, Occidental Petroleum's w ...

Group 1 - The company reported preliminary data indicating an average oil price of $71.01 per barrel for the first quarter, surpassing analyst expectations of $70.58 per barrel [1]

Core Viewpoint - 1PointFive, a subsidiary of Occidental, has signed a 25-year offtake agreement to capture approximately 2.3 million metric tons of CO2 per year from CF Industries' Bluepoint low-carbon ammonia production facility in Louisiana, with the CO2 to be stored at 1PointFive's Pelican Sequestration Hub [1][2][4] Group 1: Agreement Details - The agreement involves the transportation and geological storage of CO2 captured from the Bluepoint facility, which is a collaboration with CF Industries and its partners JERA Co., Inc. and Mitsui & Co., Inc. [1][4] - The Pelican Sequestration Hub has received a final investment decision and is progressing through the development process [1][3] Group 2: Industry Impact - The agreement highlights the potential for large-scale investments in low-carbon products and assists hard-to-decarbonize sectors in managing their emissions [2][3] - Sequestration technology enhances the value of natural gas, allowing for the production of ammonia with significantly lower carbon intensity when CO2 emissions are captured during manufacturing [2] Group 3: Company Expertise - 1PointFive's collaboration with CF Industries is seen as a validation of its expertise in managing carbon dioxide and its role as a commercial sequestration partner [3] - The Pelican hub will include infrastructure for safely and economically sequestering industrial emissions in geological formations over a mile underground, leveraging Occidental's extensive experience in CO2 management [3]

Core Insights - Warren Buffett has shifted his perspective on the oil and energy sector, particularly with his significant investment in Occidental Petroleum Co. (OXY) [2][13] - Buffett's previous investment in ConocoPhillips was deemed a "major mistake," leading to substantial losses [5][4] Investment in Occidental Petroleum - Berkshire Hathaway acquired OXY stock when it was down 30% from its highs in February 2025, increasing its stake by 763,017 shares to a total of 265 million shares, representing 28.2% of the company [2] - This investment accounted for 4.63% of Berkshire's total assets, making it the sixth-largest holding in the portfolio [2] - Buffett's investment strategy with Occidental included a $10 billion investment in preferred stock, which provided an 8% annual dividend and warrants for purchasing common stock at $59.62 per share [9][13] Comparison with Previous Investments - Buffett's earlier investment in ConocoPhillips involved accumulating nearly 85 million shares, but he exited by 2013 with estimated losses of $1.5 billion due to a failure to anticipate the collapse in energy prices [5][4] - In contrast, Buffett's investment in Occidental is characterized by a solid foundation of dividends and the potential for further stock acquisition at a discount [13] Leadership and Strategy - Buffett praised Occidental's CEO Vicki Hollub for her fiscal discipline and long-term vision, which influenced Berkshire's decision to invest [10] - Occidental is diversifying its operations, particularly through investments in carbon capture technology via its subsidiary 1PointFive, which is set to launch a billion-dollar direct air capture facility in 2025 [11][12] Market Outlook - Analysts have a 12-month stock price forecast for Occidental Petroleum at $59.00, indicating a potential upside of 52.44% from the current price of $38.70 [11] - The company is also selling carbon dioxide removal credits, which could enhance its revenue streams and align with environmental accountability [12]

Core Points - The U.S. Environmental Protection Agency has approved Occidental and 1PointFive's Class VI permits for carbon dioxide sequestration from the STRATOS Direct Air Capture facility in Texas, marking a significant milestone for the company [1][2][3] - The permits are essential for Occidental's strategy to securely store CO2 captured from the atmosphere, demonstrating compliance with federal and state requirements during the EPA's review process [2][3] - STRATOS is designed to capture up to 500,000 tonnes of CO2 annually and is expected to commence commercial operations in 2025, contributing to U.S. energy security and economic growth [3] Company Overview - Occidental is a major international energy company with significant assets in the U.S., Middle East, and North Africa, recognized as one of the largest oil and gas producers in the U.S. [4] - The company is involved in various segments, including midstream and marketing, and is committed to advancing carbon management technologies through its Oxy Low Carbon Ventures subsidiary [4] - 1PointFive focuses on Carbon Capture, Utilization, and Sequestration (CCUS) solutions, aiming to mitigate global temperature rise through innovative decarbonization technologies [5]

HOUSTON, April 02, 2025 (GLOBE NEWSWIRE) -- Occidental (NYSE: OXY) will announce its first quarter 2025 financial results after close of market on Wednesday, May 7, 2025, and will hold a conference call to discuss the results on Thursday, May 8, 2025, at 1 p.m. Eastern/12 p.m. Central. The conference call may be accessed by calling 1-866-871-6512 (international callers dial 1-412-317-5417) or via webcast at oxy.com/investors. Participants may pre-register for the conference call at https://dpregister.com/sr ...