Warren Buffett will help Occidental reduce its debt, says Tortoise Capital's Rob Thummel

Core Insights - Occidental Petroleum (Oxy) has a significant debt load of $24 billion against $27 billion in revenue, indicating a nearly 1:1 debt-to-revenue ratio, which is concerning for investors [1] - Warren Buffett's potential involvement in helping Oxy reduce its debt by $10 billion could improve its financial standing, particularly its debt-to-EBITDA ratio, which could drop to approximately 1.2 times if a transaction occurs [2][3] - Oxy is considered one of the most indebted large-cap oil and gas companies, with a current debt-to-EBITDA ratio around 1.8 times, influenced by volatile oil prices [4] Company Analysis - The energy sector is expected to see falling oil prices, leading to a cautious stance on investing in Oxy at this time [5] - Preference is given to infrastructure companies like Western Midstream, which operates on fee-based cash flow rather than commodity-based cash flow, providing more stability [6] - Other companies of interest include EQ on the natural gas side and Vistra, which is viewed as a strong investment in the evolving energy landscape [7]