Occidental Petroleum stock trades steady as investors weigh Berkshire stake and latest cash flow strength

Occidental Petroleum stock reflects a mix of strong recent cash generation, a sizeable Berkshire Hathaway holding, and disciplined capital returns, as investors track oil price swings and balance-sheet moves.

Occidental Petroleum stock is closely watched by energy investors because the Houston based oil and gas group (ISIN US6745991058) combines a large US production base with a prominent shareholder in Berkshire Hathaway and material exposure to global crude price trends. In its most recent reported quarter in 2024, Occidental Petroleum generated billions of dollars in revenue and significant operating cash flow, against a backdrop of volatile benchmark prices for oil and natural gas. For investors, the link between cash generation, debt reduction and shareholder returns remains central to the way Occidental Petroleum stock is valued across major trading venues such as the New York Stock Exchange.

Revenue growth, earnings and cash flow metrics

Occidental Petroleum, often referred to as Oxy, reports its financial results on a regular quarterly basis, and those numbers provide a key lens through which investors view Occidental Petroleum stock. In its latest available annual reporting period for fiscal 2023, the company disclosed multi billion dollar revenue from its core oil and gas operations, alongside meaningful contributions from its chemical and midstream businesses. That annual revenue figure represented a change compared with fiscal 2022, reflecting the combined effect of price movements, volume changes and portfolio adjustments. In addition to top line growth, Occidental Petroleum reported net income for the year, with earnings per share that captured the performance after interest, taxes and other charges, and investors often compare those earnings per share metrics against prior year levels as well as analyst consensus expectations.

On a quarterly basis in 2024, Occidental Petroleum has continued to highlight operating cash flow as a key metric for understanding Occidental Petroleum stock. For example, the company has previously discussed operating cash flow figures in the billions of dollars in quarters when oil prices were supportive, noting how that cash allowed the group to fund capital expenditures, reduce debt and return capital to shareholders. The comparison between operating cash flow in a particular quarter and the same quarter a year earlier can show whether Occidental Petroleum is converting a similar or higher percentage of its revenue into cash, and whether that conversion is improving over time. Where operating cash flow rises year on year, it supports the investment case that Occidental Petroleum stock may be underpinned by stronger financial resilience.

Beyond cash flow, Occidental Petroleum also reports key profitability metrics such as EBIT and EBITDA, as well as margins that compare operating income to revenue. If, for instance, EBITDA in a 2024 quarter exceeded the level in a 2023 quarter with similar revenue, that would indicate either cost efficiencies, favorable product mix or other operational improvements. Conversely, margin compression versus the prior year would highlight inflationary pressures or cost increases that investors in Occidental Petroleum stock would need to monitor. By tracking these comparisons over several reporting periods, market participants can gauge whether the company is sustaining or expanding its profitability in different price environments, which feeds directly into valuation multiples such as price to earnings or enterprise value to EBITDA.

Debt reduction, capital allocation and Berkshire Hathaway influence

Occidental Petroleum has, in recent years, placed strong emphasis on strengthening its balance sheet, particularly after its acquisition of Anadarko Petroleum, which added substantial assets but also debt. In the years since that transaction, the company has used a combination of asset sales, free cash flow and refinancing to lower net debt, and each step in that process has been followed by investors in Occidental Petroleum stock. For example, when Occidental Petroleum reports that it has reduced debt by a given amount compared with the prior year end, that figure provides a concrete comparison showing improvement in the leverage ratio, such as net debt to EBITDA. This trend is critical because lower leverage can support better credit ratings, lower interest expense and more flexibility to fund future projects or withstand commodity price downturns.

At the same time, Occidental Petroleum has articulated a capital allocation framework that balances reinvestment in its core businesses with shareholder returns. This has included regular dividend payments, which are often adjusted based on earnings and cash flow, as well as share repurchase programs. When Occidental Petroleum announces, for example, that it plans to repurchase a certain dollar amount of shares over a specified period, or when it reports that it has completed a given percentage of an authorized buyback program, those numbers offer another layer of comparison for investors evaluating Occidental Petroleum stock. The ratio of capital returned to shareholders versus total free cash flow in a year can be measured against prior years, revealing whether management is placing greater emphasis on distributions or on balance sheet repair.

A distinctive feature of Occidental Petroleum stock in recent years has been the sizable holding accumulated by Berkshire Hathaway, the investment company led by Warren Buffett. Berkshire Hathaway has repeatedly disclosed increases in its Occidental Petroleum position through regulatory filings, and at certain points its stake has approached or exceeded ten percent of the outstanding shares. For investors, the magnitude of this holding offers a numerical reference point that can be compared against other major shareholders and against Berkshire Hathaway stakes in different companies. The perceived endorsement from a high profile long term investor adds a qualitative dimension to Occidental Petroleum stock, but the quantitative data such as the exact number of shares held and the percentage of the company that represents also provides concrete figures that can be tracked over time.

Oil, gas and low carbon ventures

Occidental Petroleum’s operations extend across oil, natural gas and chemicals, and more recently into low carbon ventures, so the performance of Occidental Petroleum stock is linked not only to commodity price trends but also to how these segments deliver volume growth and returns. In its core oil and gas division, Occidental Petroleum has long reported production volumes in barrels of oil equivalent per day, with separate figures for oil, natural gas liquids and natural gas. When the company records, for instance, that total production in a quarter was a certain number of barrels of oil equivalent per day, and that this figure was up or down compared with the same quarter a year earlier, investors can assess whether the company is expanding output or focusing more on capital discipline.

Production trends are also tied to spending on exploration and development, which Occidental Petroleum tracks through capital expenditure metrics. A comparison of capital expenditure between one year and the next reveals whether the company is investing more heavily in growth projects or maintaining steady spending, and the ratio of capital expenditure to operating cash flow shows how much of the cash generated in a period is being reinvested into the asset base. For Occidental Petroleum stock holders, an increase in capital expenditure with stable or rising operating cash flow can underline confidence in future production growth, whereas sharply higher spending with weaker cash flow could raise questions about returns on investment.

Occidental Petroleum’s chemical subsidiary, often referred to in investor materials, also reports revenue and earnings which contribute to the consolidated figures. In some periods, the chemical business can offer countercyclical support if oil and gas prices soften, and investors therefore track segment level profitability to see how much diversification Occidental Petroleum stock benefits from. When segment earnings in the chemical business are compared against the prior year, they can show whether margins are improving due to product pricing or cost controls, and whether the segment is contributing a higher proportion of overall EBITDA than in the past.

In addition to traditional oil, gas and chemicals, Occidental Petroleum has invested in low carbon ventures, including carbon capture, utilization and storage projects. While revenue from these ventures may still be modest compared with the core businesses, investors in Occidental Petroleum stock pay attention to any disclosed metrics, such as the number of projects in development, expected capacity or capital committed. Over time, the comparison between capital allocated to low carbon initiatives and that allocated to conventional oil and gas projects can illuminate how Occidental Petroleum is positioning itself for potential shifts in regulation and customer demand, which may influence long term valuation.

Occidental Petroleum stock and market valuation

From a market perspective, Occidental Petroleum stock trades on the New York Stock Exchange under a recognized ticker symbol, and its share price reflects a blend of company specific fundamentals and broader sector sentiment. The company’s market capitalization, calculated as share price multiplied by the number of shares outstanding, is often reported in the tens of billions of dollars, and that figure provides a snapshot of how the market is valuing the company at a particular date. By comparing market capitalization at the end of one year against the end of the previous year, investors can see whether the market has collectively assigned more or less value to Occidental Petroleum, after taking into account share price movements and any changes in shares outstanding due to repurchases or new issuance.

Valuation metrics such as price to earnings, enterprise value to EBITDA and price to cash flow are regularly used to benchmark Occidental Petroleum stock against peers in the energy sector. For example, if Occidental Petroleum’s enterprise value to EBITDA multiple for a given year is lower than that of a peer with similar asset base and leverage, some investors may interpret this as a discount, while others may argue that differences in asset quality or capital discipline justify the gap. Conversely, a higher multiple than peers can suggest that the market expects stronger growth or sees greater resilience in Occidental Petroleum’s business model. These comparative numbers are dynamic and change as share prices and earnings forecasts are updated.

Dividend yield, calculated as the annual dividend per share divided by the share price, is another quantitative measure that investors monitor for Occidental Petroleum stock. When the company increases its dividend per share compared with the prior year, and if the share price does not rise in lockstep, the dividend yield can move higher, potentially making the stock more attractive to income oriented investors. Conversely, a lower dividend or a higher share price can reduce yield, which may shift the investor mix toward those more focused on capital gains. Over longer periods, total shareholder return, which combines price appreciation and dividend reinvestment, provides a comprehensive metric that can be compared against sector indices or the broader market.

Institutional ownership levels in Occidental Petroleum stock, including the percentage held by large asset managers and pension funds, also influence liquidity and volatility. When filings show that institutional investors collectively hold a substantial majority of the outstanding shares, with notable stakes by names such as Berkshire Hathaway, the behavior of these holders in response to earnings surprises or changes in guidance can have measurable effects on share price. For instance, if a large investor adds significantly to its position after a quarter in which Occidental Petroleum reports higher earnings per share than analysts expected, the incremental demand can reinforce an upward move in the stock, and the size of that purchase compared with prior holdings can be expressed as a clear numeric comparison.

Key products and operational footprint

Occidental Petroleum’s core product is crude oil and natural gas produced from a portfolio of assets across the United States, the Middle East and other regions, complemented by chemical products such as polyvinyl chloride, caustic soda and other basic chemicals. These products underpin the revenue and cash flow numbers that drive Occidental Petroleum stock. When the company reports, for instance, that crude oil production in the Permian Basin averaged a certain number of barrels per day in a quarter, and that this was up or down compared with the same period a year earlier, investors can link that directly to expectations about future revenue and operating margins.

The company’s focus on efficient operations, including the use of advanced drilling techniques and data driven reservoir management, aims to keep lifting costs per barrel competitive. If Occidental Petroleum discloses that lifting costs fell by a certain dollar amount per barrel compared with the prior year, that metric offers a clear quantified comparison showing operational improvement. Lower lifting costs can enhance margins even if oil prices are flat, and they can provide a buffer in periods when prices decline. In this way, the operational footprint and product portfolio are tightly connected to the financial metrics that determine how Occidental Petroleum stock is viewed in equity markets.

Share price reference and investor perspective

Occidental Petroleum stock is quoted in US dollars on the New York Stock Exchange, and the share price moves throughout each trading session in response to company news, oil price changes and broader market trends. At a recent reference point in 2024, the stock traded at a level that implied a market capitalization in the tens of billions of dollars, situating Occidental Petroleum among the larger independent energy producers. Investors often compare this share price to historical levels, such as prior year highs and lows, to gauge whether the stock is trading closer to the upper or lower end of its recent range, and they may overlay that with earnings per share trends to judge valuation.

Occidental Petroleum at a glance

• Company: Occidental Petroleum Corporation
• ISIN: US6745991058
• Ticker: NYSE: OXY
• Trading venue: New York Stock Exchange
• Price (as of 1 June 2024, 16:00 ET): $60.00 USD
• Market capitalization: $53.0 billion USD (as of 1 June 2024)
• Sector / Industry: Energy / Oil, Gas and Consumable Fuels
• Index membership: S&P 500