Group 1 - Occidental Petroleum's stock closed at $39.83, reflecting a -0.35% change from the previous day, underperforming the S&P 500's gain of 1.67% [1] - Over the past month, Occidental Petroleum's shares have decreased by 18.45%, compared to the Oils-Energy sector's loss of 10.69% and the S&P 500's loss of 6.57% [1] Group 2 - The upcoming earnings release on May 7, 2025, is anticipated to show earnings per share (EPS) of $0.72, a 10.77% increase year-over-year, with projected revenue of $7.09 billion, reflecting a 17.95% increase [2] - For the entire year, the Zacks Consensus Estimates forecast earnings of $2.63 per share and revenue of $28.8 billion, indicating a -23.99% change in earnings and a +7.14% change in revenue compared to the previous year [3] Group 3 - Recent modifications to analyst estimates for Occidental Petroleum indicate changing business trends, with positive revisions suggesting analyst optimism about the company's profitability [4] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown a strong track record, with stocks rated 1 producing an average annual return of +25% since 1988 [5][6] - Occidental Petroleum currently holds a Zacks Rank of 3 (Hold), with a consensus EPS projection that has decreased by 17.92% in the past 30 days [6] Group 4 - Occidental Petroleum's Forward P/E ratio is 15.19, which is a premium compared to the industry average Forward P/E of 13.7 [7] - The Oil and Gas - Integrated - United States industry, part of the Oils-Energy sector, has a Zacks Industry Rank of 62, placing it in the top 25% of over 250 industries [7][8]

Core Viewpoint - Occidental Petroleum (OXY) is under scrutiny due to its association with Warren Buffett's Berkshire Hathaway, but it may not be the best investment choice for dividend investors [1][9] Group 1: Dividend Performance - Occidental Petroleum's dividend yield is 2.5%, which is below the energy industry average of approximately 3.1% [2] - The company significantly cut its dividend in 2020 due to plummeting oil prices and an overleveraged balance sheet from a large acquisition [4] - Despite improvements in financial health, neither the dividend nor the stock price has returned to previous levels [4] Group 2: Alternative Investment Options - Chevron (CVX) is recommended as a better alternative for dividend investors, offering a 5% dividend yield and a history of increasing dividends for 38 consecutive years [5] - Chevron has a strong balance sheet with a debt-to-equity ratio of 0.15x, significantly better than Occidental's 0.75x [6] - Enterprise Products Partners (EPD) is highlighted as another high-yield option, with a distribution yield of 6.9% and a track record of increasing distributions for 26 consecutive years [7][8]

Occidental Petroleum TodayOXYOccidental Petroleum$39.03 -0.68 (-1.71%) 52-Week Range$34.79▼$68.43Dividend Yield2.46%P/E Ratio16.00Price Target$55.33Add to WatchlistOccidental Petroleum Co. NYSE: OXY is known for being one of the largest oil and gas producers in the United States, as well as being Warren Buffet’s favorite stock in the energy sector based on his Berkshire Hathaway Inc. NYSE: BRK.A NYSE: BRK.B cumulative holdings of 28.2% ownership in the company. Occidental is the largest oil and gas produce ...

Core Viewpoint - Occidental Petroleum is positioned as a potential long-term investment opportunity, supported by its vast resources, commitment to carbon capture technology, and growth in its chemicals business [2][3][10]. Group 1: Investment Positioning - Occidental Petroleum is one of Berkshire Hathaway's top holdings, with nearly 265 million shares owned, representing 28.2% of its outstanding shares, valued at $10.5 billion [3]. - Warren Buffett views Occidental as a "forever holding," similar to Coca-Cola and American Express, indicating strong confidence in its long-term potential [3]. Group 2: Growth Catalysts - The company possesses extensive low-cost oil and gas resources across 9.3 million net acres in key regions, which should support production growth for years [4]. - Occidental is investing heavily in carbon capture and sequestration (CCS), aiming to build the world's largest direct air capture facility, with the potential for a $3 trillion to $5 trillion global industry [6][7]. - The chemicals business, OxyChem, is projected to add approximately $325 million in annualized earnings by 2026, driven by increasing global demand for petrochemicals [8]. Group 3: Future Outlook - The combination of vast oil and gas resources, leadership in CCS, and a strong management team under CEO Vicki Hollub positions Occidental for significant shareholder value growth [11]. - While there are uncertainties regarding the future of oil and gas and the unproven nature of CCS technology, the company has multiple avenues for growth that could yield substantial returns [10].

Core Viewpoint - Warren Buffett's investment strategy, particularly his focus on dividend stocks, has significantly contributed to Berkshire Hathaway's strong performance, both historically and in the current market environment [1][2][3]. Group 1: Berkshire Hathaway's Performance - Berkshire Hathaway has achieved a cumulative return of 6,325,426% for its Class A shares since Warren Buffett became CEO [1]. - Year-to-date, Berkshire's stock has increased by 15%, contrasting with a 10.2% decline in the S&P 500 and a 15.7% drop in the Nasdaq Composite [2]. Group 2: Dividend Stocks and Returns - Research indicates that dividend-paying stocks have outperformed non-payers, with annualized returns of 9.2% for dividend stocks compared to 4.31% for non-payers over 51 years [4]. - Berkshire Hathaway is projected to receive nearly $3.3 billion in dividend income over the next 12 months from four key companies [5]. Group 3: Key Dividend Contributors - **Occidental Petroleum**: Expected to generate $933,463,774 in dividend income, with over $254 million from common shares and an 8% yield of approximately $679.1 million from preferred stock [6][7]. - **Coca-Cola**: Anticipated to provide $816 million in dividend income, known for its stability and ability to generate predictable cash flow [9][10][11]. - **Chevron**: Projected to deliver $811,296,053 in dividend income, with a strong balance sheet and a history of increasing dividends for 38 consecutive years [14][16]. - **Bank of America**: Expected to contribute $707,442,930 in dividend income, benefiting from its sensitivity to interest rates and a favorable economic cycle [18][20].

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 ...