We Asked a Year Ago If You Should Buy Buffett’s Favorite Oil Stock. Here’s What Happened.

Core Viewpoint - Occidental Petroleum's stock performance over the past year has been positive, with an 18.07% gain despite challenging oil price conditions, indicating strong operational management and strategic decisions [2][3]. Company Performance - The stock price increased from $45.47 on March 3, 2025, to $53.68 on March 3, 2026, reflecting an 18.07% gain over the year [3]. - Occidental Petroleum consistently beat EPS estimates throughout 2025, with the most significant beat occurring in Q3 2025 at 29.90%, resulting in an adjusted EPS of $0.64 against a consensus of $0.4927 [4]. - Full-year FY2025 EPS was reported at $2.21, with total revenue of $22.4 billion and operating cash flow of $11.7 billion [4]. - A transformative sale of OxyChem to Berkshire Hathaway was completed on January 2, 2026, which facilitated a $5.8 billion reduction in debt, bringing the principal debt down to $15 billion [4]. Market Reaction - The stock surged approximately 6% in pre-market trading on March 2, 2026, due to geopolitical tensions, with WTI crude gaining 6.5% and Brent crude rising 7.5% [4]. - Analysts currently have a cautious outlook, with a consensus target price of $51.88, indicating that the stock is slightly overvalued at its current trading price of $53.68 [5]. - BMO Capital raised its price target to $60 from $48 following Occidental's Q4 earnings beat, while Susquehanna increased its target to $55 after Q3 results [6].