Key Points Berkshire Hathaway has an extensive history with Occidental Petroleum. Buffett hasn’t been tempted to chase high-flying growth stocks and is perfectly fine investing in underappreciated businesses. OxyChem will fit well under Berkshire Hathaway’s umbrella. 10 stocks we like better than Berkshire Hathaway › On Jan. 1, 2026, Warren Buffett will step down as chief executive officer (but remain chairman) of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) -- handing the reins to his successo ...

Core Insights - Oil prices remained stable while natural gas prices experienced a decline, influenced by various market dynamics and corporate activities in the energy sector [1][2][3] Mergers and Acquisitions - California Resources Corporation (CRC) announced a merger with Berry Corporation (BRY) in an all-stock deal valued at approximately $717 million, which includes Berry's net debt. This merger aims to unlock operational synergies, reduce costs, and enhance cash flow generation [4][5] - Following the merger, CRC shareholders will own about 94% of the combined entity, which will strengthen CRC's asset portfolio by adding high-quality, conventional oil-weighted production assets [5][6] - Chord Energy is set to acquire Williston Basin assets from Exxon Mobil's subsidiary, XTO Energy, for $550 million. This acquisition will enhance Chord's presence in the Williston Basin and is expected to contribute 9,000 barrels of oil equivalent per day to its production [6][7][8] Regulatory Developments - Pembina Pipeline secured approval from the Canada Energy Regulator for a negotiated settlement regarding the Alliance Pipeline, which is crucial for the natural gas transmission system between Canada and the U.S. This approval is expected to ensure smooth operations for the pipeline over the next decade [9][10][11] Environmental Initiatives - Petrobras has approved the construction of Brazil's first Carbon Capture and Storage (CCS) pilot project, aiming to capture and store up to 100,000 tons of CO2 annually. This project is part of Brazil's commitment to carbon neutrality by 2050 and will leverage Petrobras' expertise in offshore technologies [11][12][13] Market Performance - The Energy Select Sector SPDR saw a slight decline of 0.1% last week, with mixed stock performances among major oil and gas companies. Over the past six months, the sector fund has decreased by approximately 4% [14][15]

Core Viewpoint - California Resources Corporation intends to offer $400 million in senior unsecured notes due 2034 to finance the repayment of existing indebtedness related to the pending business combination with Berry Corporation [1][2]. Group 1: Offering Details - The offering consists of $400 million in aggregate principal amount of senior unsecured notes due 2034, guaranteed by existing and certain future subsidiaries [1]. - The net proceeds will be used to repay Berry Corporation's existing indebtedness and cover fees and expenses related to the merger and the note offering [1]. Group 2: Redemption Conditions - If the Berry Merger does not occur by March 14, 2026, or if the merger agreement is terminated, the notes will be subject to a special mandatory redemption at 100% of the initial issue price plus accrued interest [2]. Group 3: Regulatory Information - The notes will not be registered under the Securities Act of 1933 and will be offered only to qualified institutional buyers and non-U.S. persons [3]. - The company will file a registration statement with the SEC in connection with the Berry Merger, which will include a proxy statement and prospectus [8]. Group 4: Company Overview - California Resources Corporation is an independent energy and carbon management company focused on energy transition and environmental stewardship [7].

Core Insights - California Resources Corporation (CRC) has published its 2024 Sustainability Report Summary and 2024 Sustainability Report, highlighting its ongoing commitment to sustainability and local energy production [1][2] - The company has become the largest oil and gas producer in California following its merger with Aera Energy, which has influenced its sustainability strategy [2] - CRC introduced its Responsible Net Zero (RNZ) strategy, focusing on decarbonization and aligning with California's climate goals [2][8] Sustainability Highlights - CRC secured California's first-ever EPA permits for underground CO2 injection and storage, paving the way for the state's first commercial-scale carbon capture and storage (CCS) project [8] - The company reduced Scope 1 and 2 greenhouse gas emissions by 27% compared to its 2020 baseline and legacy methane emissions by 32% [8] - CRC achieved a well production carbon intensity that is 9% below the California Air Resources Board (CARB) 2023 statewide average [8] - The company delivered over 4.7 billion gallons of treated reclaimed water to local water districts and recycled or reclaimed approximately 75% of total produced water from operations [8] - CRC provided more than $5.7 million in donations across California to positively impact communities and continued to rank among the safest companies in the U.S. with 23 awards from the National Safety Council [8]

Core Insights - Petrobras has approved the São Tomé CCS Pilot Project, marking Brazil's first carbon capture and storage initiative, with operations set to begin in 2028 and aiming to capture and store up to 100,000 tons of CO2 annually for three years, supporting Brazil's carbon neutrality goal by 2050 [1][9]. Strategic Importance - The São Tomé CCS Pilot is a key element in Petrobras' decarbonization strategy, directly aligning with Brazil's national climate agenda and the company's target of achieving net-zero emissions by 2050 [2]. - The project utilizes Petrobras' extensive offshore technology expertise for CO2 capture, transportation, and geological storage in deep saline formations [2]. Project Location and Geological Suitability - The project will be located in Barra do Furado, Quissamã, chosen for its geological characteristics that favor safe and permanent CO2 storage in saline aquifers, recognized for their long-term stability and minimal environmental impact [3]. CCS Value Chain Integration - The project encompasses the entire CCS value chain, including advanced CO2 capture technologies, dedicated transport pipelines, and deep subsurface injection, allowing Petrobras to test operations in a real-world environment and develop regulatory frameworks for future projects [4]. Regulatory Oversight - The São Tomé CCS Pilot is under the supervision of key regulatory bodies, ensuring adherence to safety and environmental standards, while also serving as a testing ground for legal frameworks for future commercial-scale CCS projects [5][6]. Technological Innovation - The project will employ innovative monitoring technologies to track CO2 movement with high precision, including seismic imaging and subsurface monitoring systems, which will provide critical data for validating geological carbon storage [7][8]. National and Global Learning Platform - The pilot project is designed to be a learning platform for Brazil, expected to train local engineers and geoscientists in CCS technologies and provide valuable data for research institutions [10][11]. Alignment with International Standards - The project aligns with global environmental protocols and climate strategies, positioning Brazil alongside countries like Norway, Canada, and the United States in implementing similar storage technologies [12]. Future Industrial Decarbonization - The pilot could serve as a model for future CCS hubs that aggregate emissions from various industrial sources, enhancing Brazil's role in global climate solutions [13]. Conclusion - The São Tomé CCS Pilot represents a significant milestone for Petrobras and Brazil's energy transition, integrating the full CCS value chain and setting a benchmark for climate action in the Global South, as Petrobras evolves into a climate technology leader [14].

Core Insights - Technip Energies, in partnership with JGC, has secured two significant Front-End Engineering Design (FEED) contracts for the INPEX Abadi LNG project, which is pivotal for Indonesia's energy sector [1][4] - The project aims to produce 9.5 million tons of LNG annually and provide an additional 150 million standard cubic feet per day of natural gas for domestic use, significantly contributing to Indonesia's energy goals and Japan's LNG imports [4] Group 1: Contract Details - The first contract involves the design of a gas Floating Production Storage and Offloading (FPSO) vessel, which will process gas before exporting it via subsea pipeline to the onshore LNG facility [2] - The second contract focuses on the onshore LNG facility, which includes the design of two LNG trains and supporting infrastructure such as a jetty and materials offloading facilities [3] Group 2: Strategic Importance - The Abadi LNG project incorporates carbon capture and storage (CCS) technology, aligning with Indonesia's target of achieving net-zero CO₂ emissions by 2060 [4] - The project is expected to play a crucial role in the global energy transition by providing low-carbon energy solutions, thereby supporting both local economic growth and sustainability efforts [4]

Financial Data and Key Metrics Changes - For Q2 2025, the company reported a net loss of $72.2 million or $1.09 per share, compared to a loss of $24.4 million or $0.38 per share in Q2 2024, reflecting a significant increase in losses [16][19] - Revenue for the quarter was $552.8 million, down 10.7% year-over-year, primarily due to exiting ethanol marketing and placing the Fairmont ethanol asset on care and maintenance [18][19] - Adjusted EBITDA for Q2 2025 was $16.4 million, compared to $5 million in Q2 2024, indicating improved operational performance despite the overall revenue decline [19] Business Line Data and Key Metrics Changes - The company has focused on core operations and has executed several non-core asset sales, including the GP Ferrelson joint venture, which has improved liquidity and operational focus [12][13] - The operational execution has led to 99% capacity utilization across the fleet of operating assets, with the highest ethanol yields in company history [24][26] Market Data and Key Metrics Changes - The market has seen improvements due to strong ethanol exports and supportive policies regarding renewable volume obligations, which have expanded ethanol crush margins [29][30] - The company is currently 65% crushed for Q3, indicating strong operational performance and market conditions [29][100] Company Strategy and Development Direction - The company is narrowing its focus to core operations and enhancing profitability through a carbon strategy, with significant progress in constructing CCS infrastructure [9][10] - The recent legislation, including the One Big Beautiful Bill Act, has extended the 45Z clean fuel production tax credit through 2029, positively impacting the company's strategic investments [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to improve profitability and cash flows, particularly with the anticipated startup of carbon monetization in Q4 2025 [33][39] - The company expects to achieve an annualized EBITDA contribution of over $150 million from its decarbonization strategy by 2026 [12][49] Other Important Information - The company has successfully extended the maturity of its junior mezzanine notes and is evaluating various financing solutions to support long-term growth [14][15] - Continuous improvement initiatives have led to a $50 million cost reduction target being met, with further efficiencies being identified [12][34] Q&A Session All Questions and Answers Question: Can you help frame the EBITDA potential in the back half of the year and into 2026? - Management indicated a stronger EBITDA margin outlook supported by rising corn oil prices and strong ethanol exports, with carbon monetization expected to contribute $20-25 million in Q4 [39] Question: What was the thought process behind the sale of the stake in the Darrelson JV? - The asset was deemed non-core, and data-driven decisions indicated it was sensible to exit at this time [41][42] Question: Can you clarify cash flows and the impact of RIN sales? - The $22.6 million from RIN sales was included in operating cash, and the proceeds from the Darrelson sale were collected in July, contributing positively to Q3 cash flow [46][47] Question: What is the expected impact of the 45Z credits? - The carbon opportunity has increased to $150 million for 2026 due to favorable policy changes, with all plants expected to qualify for the 45Z tax credits [49][51] Question: How should investors think about the capital structure and cash flows from carbon monetization? - Significant cash flows from carbon monetization are expected to accrue directly to the company, providing free cash flows for capital allocation [55][58] Question: What is the current state of the export market? - The export market is strong, with projections to reach 2.1 billion gallons, supported by increased demand from Canada, India, and the EU [108][110]

Financial Performance & Debt Reduction - Occidental generated approximately $2.6 billion in operating cash flow before working capital in Q2 2025[6, 11] - The company repaid $7.5 billion of debt over the last 13 months, reducing annual interest expense by ~$410 million[7, 24] - Additional divestitures of approximately $950 million were announced since Q1 2025[7, 11, 24] - Unrestricted cash balance as of June 30, 2025, was $2.3 billion[27] Cost Reduction & Efficiency - $150 million of additional 2025 capital and opex reductions are planned[7, 13] - Cumulative cost reductions of $500 million are expected in 2025, enhancing cash flow[7] - Domestic operating cost reduction drivers are expected to save ~$150 million in 2025[13] - Permian unconventional well costs in 1H25 were 13% lower than the 2024 average[15] Production & Operations - Total company production was 1,400 Mboed in Q2 2025[11, 27] - OxyChem pre-tax income was $213 million in Q2 2025[27] - Midstream adjusted pre-tax income was $116 million in Q2 2025[27]

Financial Performance - The company generated $324 million of Adjusted EBITDAX in 2Q25, exceeding guidance[8] - Operating cash flow for 2Q25 reached $165 million[4] - Free cash flow for 2Q25 was $109 million[5] - Shareholder returns totaled $287 million in 2Q25, including dividends of $35 million and share repurchases of $252 million[4] - $422 million was returned to shareholders in 1H25, and $1482 million since May 2021[16] Operational Highlights - Net production in 2Q25 was 137 thousand barrels of oil equivalent per day (MBOE/D), with 80% oil, 7% NGLs, and 13% gas[6, 7] - The company reduced 2025 estimated drilling & completion (D&C) and workover capital by approximately 3%[8] - The company raised the midpoints of 2025 estimated net production by approximately 1% and adjusted EBITDAX by approximately 7%[8] - Aera merger synergies of $235 million were implemented 3 months ahead of schedule[8, 26] Carbon Management - The CTV JV received authorization to construct from the U S EPA[8] - The company has 7 EPA Class VI permits in queue for approximately 287 million metric tons of storage[64]

High-integrity carbon removal credits will be used to support buyer's decarbonization and to mitigate corporate travel emissions ENGLEWOOD, Colo., July 21, 2025 (GLOBE NEWSWIRE) -- Gevo, Inc. (NASDAQ: GEVO) is pleased to announce that it is selling carbon abatement into the market for the first time. To support decarbonization and to mitigate its corporate travel emissions, the buyer, a global financial and technology company, purchased high- integrity durable carbon removal credits, known as CORCs (or CO2 ...