OXY(OXY) Finbold·2025-01-06 10:33Warren Buffett's Investment in Occidental Petroleum - Warren Buffett's Berkshire Hathaway invested approximately $405 million in Occidental Petroleum (OXY) shares during 2024, despite the stock trading below $50 [1] - OXY stock has shown signs of recovery, currently trading at $50.51, up 1.41% in the last trading session and 4.6% on a weekly basis [2] Technical Analysis and Potential Breakout - OXY stock is forming a bullish technical pattern, pushing above a descending wedge, with a bullish MACD cross indicating positive momentum [4][5] - Key resistance levels to watch are $55 and $62.50, with a potential breakout paving the way for higher price ranges [6] Financial Recovery and Strategic Moves - Occidental Petroleum has reduced its debt by 60% since its 2019 acquisition of Anadarko Petroleum, leveraging $23.6 billion in free cash flow from the 2022 oil surge [7] - The company redeemed 15% of Berkshire's preferred stock, saving $120 million annually in interest costs [7] Long-Term Growth Opportunities - Occidental's investment in direct air capture (DAC) technology positions it for long-term growth, with Microsoft purchasing 500,000 metric tons of carbon credits and the U.S. government investing $500 million in its carbon capture projects [8] Revenue Outlook - Occidental's revenue is expected to decline by 6.65% in Q4 2024 to $7.03 billion, but rebound by 14.96% in Q1 2025 to $6.91 billion [9][10] - Full-year 2024 revenue is estimated at $27.15 billion, down 6.1% from 2023, with a forecasted rebound to $28.44 billion in 2025, marking a 4.75% year-over-year growth [10] Analyst Projections - Wall Street analysts project OXY stock to trade at an average price of $60.45 in the next 12 months, with the highest forecast at $78 [11]