Berkshire Hathaway is arguably always Buffett's favorite stock. But another stock commands a strong second place. Many investors (including me) have observed that Warren Buffett has built a massive cash stockpile for Berkshire Hathaway (BRK.A -0.25%) (BRK.B 0.03%). Many have also noticed Buffett has been a net seller of stocks for seven consecutive quarters. Does this mean the legendary investor can no longer find any stocks he likes? Not at all. Buffett isn't buying many stocks, but he's still buying some. ...

Company Overview - Occidental Petroleum (Oxy) is an integrated energy company with assets in upstream (oil and natural gas production), midstream (pipelines), and downstream (chemicals and refining) segments, similar to industry giants like ExxonMobil and Chevron [2] - The company's portfolio spans the United States, the Middle East, and North Africa, though its geographic diversification is less extensive compared to larger peers [3] - Oxy has a market capitalization of $50 billion, significantly smaller than Exxon's $550 billion and Chevron's $270 billion [3] Growth Strategy - Oxy is actively pursuing acquisitions to expand its scale and compete with industry giants, as seen in its outbidding of Chevron for Anadarko Petroleum and its recent acquisition of Crown Rock [4][5] - The company aims to grow into one of the top players in the energy industry by acquiring assets similar to those targeted by larger competitors [5] - Acquisitions are particularly meaningful for Oxy due to its smaller size, providing more significant growth opportunities compared to its larger peers [7] Industry Context - The energy industry is transitioning toward cleaner energy sources like solar and wind, but oil and natural gas are expected to remain critical components of the global energy mix for decades [6] - Industry consolidation favors large and efficient operators, positioning companies like Exxon and Chevron as leaders, while Oxy seeks to expand its operating scale through acquisitions [6][7] Competitive Positioning - Oxy's business model mirrors that of Exxon and Chevron, but its smaller size makes it unlikely to fully catch up to these giants, despite its acquisition-focused growth strategy [8] - The company has demonstrated financial prudence by paying down debt and focusing on smaller, more manageable acquisitions, such as Crown Rock, following past missteps like the Anadarko deal [4][7] Investment Perspective - Oxy represents a growth opportunity for investors willing to take on additional risk, as it actively competes with larger industry players through strategic acquisitions [9] - Conservative investors may prefer established giants like Exxon or Chevron, while growth-oriented investors could find value in Oxy's expansion efforts [9]

Core Insights - Occidental Petroleum Corp has a GF Score of 68 out of 100, indicating poor future outperformance potential [2] - The company has experienced a daily gain of 0.68% but a three-month decline of 11.28%, suggesting volatility in its stock performance [1] Company Overview - Occidental Petroleum Corp is an independent exploration and production company with operations in the United States, Latin America, and the Middle East [3] - As of the end of 2023, the company reported net proved reserves of nearly 4 billion barrels of oil equivalent and an average net production of 1,234 thousand barrels of oil equivalent per day, split evenly between oil and natural gas [3] - The company's market capitalization is $50.54 billion, with sales of $27.12 billion and an operating margin of 20.61% [3] Financial Performance - For the year ending December 31, 2023, Occidental's revenue was $28.3 billion, with a gross profit of $10.1 billion, resulting in a gross profit margin of 35.8% [4] - The company reported a pretax income of $6.4 billion from oil and gas operations, accounting for 22.8% of total income [4] - The financial strength indicators reveal a concerning Alman 7-score of 1.74, below the distress zone, and a low cash-to-debt ratio of 0.09, indicating potential financial distress [5] Growth Prospects - Occidental Petroleum Corp shows a lack of significant growth, reflected in its low growth rank and a predictability rank of just one star out of five, which adds to investor uncertainty regarding revenue and earnings consistency [6]

Core Viewpoint - Occidental will announce its third quarter 2024 financial results on November 12, 2024, and will hold a conference call on November 13, 2024, to discuss these results [1][2]. Group 1: Financial Results Announcement - The third quarter 2024 financial results will be released after the market closes on November 12, 2024 [1]. - A conference call to discuss the financial results is scheduled for November 13, 2024, at 1 p.m. Eastern/12 p.m. Central [1]. Group 2: Accessing the Conference Call - Participants can access the conference call by calling 1-866-871-6512 (international callers dial 1-412-317-5417) or via webcast at oxy.com/investors [2]. - Pre-registration for the conference call is available at a specified link [2]. - A recording of the webcast will be posted on the company's website shortly after the call concludes [2]. Group 3: Company Overview - Occidental is an international energy company with significant assets in the United States, the Middle East, and North Africa [3]. - The company is one of the largest oil and gas producers in the U.S., with a leading position in the Permian and DJ basins, as well as offshore in the Gulf of Mexico [3]. - Occidental's midstream and marketing segment focuses on flow assurance and maximizing the value of oil and gas [3]. - The chemical subsidiary, OxyChem, produces essential building blocks for various life-enhancing products [3]. - Oxy Low Carbon Ventures is dedicated to advancing technologies and business solutions that promote economic growth while reducing emissions [3].

Group 1 - Occidental Petroleum is recognized as a well-managed energy company with significant potential for production growth through both organic means and acquisitions [1] - The company is expanding its operational footprint and utilizing excess cash flow to reduce its debt, resulting in a more streamlined balance sheet [1]

Occidental Petroleum's (OXY) share price has dropped 15.8% in the trailing twelve months compared with its industry's decline of 7.2%. OXY exposure to fluctuating market prices of commodities remains a concern. As of Dec. 31, 2023, there were no active commodity hedges in place, so if the commodity prices drop substantially, it can adversely impact Occidental's performance. The company has issued $5 billion of senior unsecured notes to fund the cash consideration of the CrownRock acquisitions. A huge increa ...

This Warren Buffett stock is begging for your attention. Warren Buffett knows a thing or two about oil stocks. And while his track record hasn't been perfect, betting alongside one of the best investors of all time is a wise strategy for making money over the long term. Lately, Buffett has been loading up on one oil stock in particular. Last quarter, he increased his position in it by more than 7 million shares. So if you're on the hunt for oil stocks with attractive long-term upside, this one is worth cons ...

The latest trading session saw Occidental Petroleum (OXY) ending at $52.40, denoting a +0.31% adjustment from its last day's close. The stock's change was more than the S&P 500's daily gain of 0.25%. Meanwhile, the Dow experienced a rise of 0.2%, and the technology-dominated Nasdaq saw an increase of 0.56%. The oil and gas exploration and production company's shares have seen a decrease of 8.94% over the last month, not keeping up with the Oils-Energy sector's loss of 0.05% and the S&P 500's gain of 1.65%. ...

With just one subscription to Beyond the Wall Investing , you can save thousands of dollars a year on equity research reports from banks. You'll keep your finger on the pulse and have access to the latest and highestquality analysis of this type of information. As you probably know, Occidental Petroleum Corporation (NYSE: OXY ) is a major independent oil and gas producer in the US, the Middle East, and North Africa; it has a midstream services business, and also owns a chemicals business producing and marke ...

Core Viewpoint - Warren Buffett has halted his consistent purchasing of Occidental Petroleum shares, despite previously buying whenever the stock traded below $60, as he now holds more cash than investment ideas [2][4][5]. Group 1: Investment Strategy - Berkshire Hathaway's cash and Treasury holdings could exceed $300 billion by the end of Q3, driven by Buffett's decision to sell stocks without reinvesting [2]. - Buffett has sold over $7 billion worth of Bank of America stock since the start of Q3, indicating a trend of selling more stocks than buying [3]. - Occidental Petroleum shares are currently near a two-year low, yet Buffett has not added to his position, suggesting a shift in investment strategy [3][4]. Group 2: Occidental Petroleum's Financials - Occidental's stock price has fallen close to $50, and Buffett has not purchased more shares despite previously buying below $60 [4][5]. - The price of West Texas Intermediate crude oil has dropped about 15% since the start of Q3, impacting Occidental's earnings [7]. - Occidental's management aims to reduce debt from approximately $19.7 billion to $15 billion by the end of 2026 or Q1 2027, having already retired $3 billion of debt in Q3 [8]. Group 3: Market Position and Future Prospects - Occidental's portfolio, particularly in the Permian Basin, positions it favorably for future earnings when oil prices rise [13]. - The company is investing in carbon capture technology, receiving a $650 million award from the U.S. Department of Energy for a Direct Air Capture Hub, which could lead to significant future revenue [14]. - Occidental shares currently trade at an enterprise-value-to-EBITDA ratio of about 5.4, a discount compared to larger peers, making it potentially attractive for investors bullish on oil prices and carbon capture [15].