Occidental Petroleum stock (US6745991058): Warren Buffett favorite in focus after latest earnings and oil price swings

Occidental Petroleum has reported fresh quarterly figures while oil prices remain volatile and Warren Buffett’s Berkshire Hathaway keeps adding to its stake. What drives the stock story for US investors now?

Occidental Petroleum is back in the spotlight after the company reported its latest quarterly results and as oil prices remain volatile, while Warren Buffett’s Berkshire Hathaway continues to hold a large stake in the producer. The integrated oil and gas group recently posted first-quarter 2026 earnings with lower profit year over year but solid cash generation, according to a company release published in early May 2026 on its investor relations site, as reported by Occidental Petroleum as of 05/2026. In parallel, the stock has shown notable short-term moves in step with crude benchmarks, with daily changes around one to two percent on the New York Stock Exchange in recent sessions, based on price data from major US market portals including NYSE data as of 05/2026.

As of: 24.05.2026

By the editorial team – specialized in equity coverage.

At a glance

• Name: Occidental Petroleum
• Sector/industry: Energy, oil and gas exploration and production
• Headquarters/country: Houston, United States
• Core markets: United States, Middle East, Latin America
• Key revenue drivers: Crude oil, natural gas liquids, natural gas, chemicals
• Home exchange/listing venue: New York Stock Exchange (ticker: OXY)
• Trading currency: US dollar (USD)

Occidental Petroleum: core business model

Occidental Petroleum is an energy company with a strong upstream focus, meaning that exploration and production of oil and gas volumes are central to its business model. The group holds significant acreage in US shale basins such as the Permian, where it drills wells, develops fields and sells produced hydrocarbons into regional and global markets. Its performance is therefore closely linked to benchmark crude prices like West Texas Intermediate and Brent, which can move substantially within short periods, influencing realized selling prices and cash flows.

In addition to upstream activities, Occidental Petroleum operates a midstream and marketing segment that manages pipelines, gathering systems and export logistics to bring volumes from the field to end markets. This part of the business can smooth earnings by generating fee-based income, but its scale is smaller than the company’s upstream operations, according to segment descriptions provided in recent annual filings released in February 2025 by the company on its investor page, as outlined by SEC filing as of 02/2025.

Another pillar of the group is its chemicals arm, commonly referred to as OxyChem, which manufactures basic chemicals and vinyls that are used in construction, packaging and various industrial processes. While the chemicals segment is more exposed to industrial demand cycles than to oil prices, it can provide partial diversification of earnings when commodity markets are weak. Management has emphasized in past presentations, such as the 2025 investor day materials published in March 2025, that this diversification is intended to enhance resilience, as noted by Occidental Petroleum as of 03/2025.

Occidental Petroleum also invests in low-carbon solutions, particularly carbon capture, utilization and storage projects. Through its Oxy Low Carbon Ventures unit, the company aims to build large-scale direct air capture plants and carbon management services that could, over the long term, provide new revenue streams from selling carbon credits or offering emissions management to third parties. These initiatives are still at an early stage relative to the core oil and gas business, but they feature prominently in the group’s long-term strategy and climate-related disclosures submitted in 2024 and 2025, according to documentation made available by Occidental Petroleum as of 11/2025.

Main revenue and product drivers for Occidental Petroleum

The company’s revenue is primarily driven by the volume of hydrocarbons it produces and the realized prices for crude oil, natural gas liquids and natural gas. Volumes depend on drilling activity, decline rates of existing wells and capital expenditure levels, all of which are determined by management in response to market conditions. Realized prices, in turn, track global commodity benchmarks with a time lag and reflect regional differentials, contract terms and hedging outcomes. When oil prices rise, Occidental Petroleum’s revenue and operating cash flow typically move higher, while price downturns can quickly pressure profitability.

Occidental Petroleum’s chemicals business contributes additional sales through products such as chlorine, caustic soda and PVC, which are sold to industrial clients. Demand here is influenced by global economic growth, construction activity and manufacturing cycles. In its full-year 2024 report released in February 2025, the company reported that the chemicals segment generated a meaningful portion of its operating income, though still smaller than the upstream contribution, as highlighted by Occidental Petroleum as of 02/2025. This segment can sometimes offset part of the volatility from oil markets, especially when industrial demand remains robust.

Another important driver for Occidental Petroleum is its capital allocation framework, including how much of its cash flow is directed toward debt reduction, shareholder returns and new investments. After its large acquisition of Anadarko Petroleum in 2019, the company carried significant leverage and prioritized deleveraging. Over the following years, management used higher oil prices to pay down debt, according to updates in earnings releases throughout 2023 and 2024, such as the third-quarter 2024 report issued in November 2024 and summarized by Reuters as of 11/07/2024.

Shareholder distributions via dividends and share repurchases are closely watched by investors, especially as Berkshire Hathaway has built a major position in the stock. The company has periodically increased its dividend and authorized share buyback programs when market conditions and leverage allowed, according to board decisions communicated in press releases during 2023 and 2024. For example, Occidental Petroleum announced an additional repurchase authorization and a dividend raise in a statement released in February 2024, as reported by Occidental Petroleum as of 02/2024. These decisions shape the total return profile of the stock for income-oriented and total-return investors.

Why Occidental Petroleum matters for US investors

For US investors, Occidental Petroleum occupies a prominent role in the domestic energy sector as one of the larger independent oil and gas producers listed on the New York Stock Exchange. The company is part of major US equity indices that many ETFs and mutual funds track, meaning that shifts in Occidental Petroleum’s strategy, profitability or balance sheet can ripple through portfolios indirectly. Its significant footprint in the Permian Basin also ties its prospects closely to US energy policy, shale productivity trends and infrastructure availability, factors that matter for the broader US oil supply outlook.

Another reason the stock attracts attention is the presence of Berkshire Hathaway as a major shareholder. Warren Buffett’s conglomerate began building its position after Occidental Petroleum announced the Anadarko acquisition and has increased it over time through open-market purchases and preferred securities, according to multiple SEC filings and news reports, including an update published in August 2024 detailing additional share purchases, as summarized by CNBC as of 08/20/2024. For many retail investors in the United States and abroad, Berkshire’s interest in Occidental Petroleum provides an additional narrative layer, even though it does not guarantee future performance.

Occidental Petroleum’s exposure to global commodity markets also means the stock can act as a partial hedge against inflation and geopolitical risks for some US portfolios. When supply disruptions or geopolitical tensions drive up oil prices, integrated exploration and production companies may benefit, potentially offsetting weakness in more cyclical sectors. The flip side is that the stock can be volatile, reacting quickly to macroeconomic data, OPEC+ policy shifts and changes in demand expectations. Daily moves of more than one percent are common, as evidenced by trading patterns on the New York Stock Exchange during periods of heightened energy market uncertainty, based on quotes compiled by MarketWatch as of 05/2026.

Conclusion

Occidental Petroleum remains a closely watched energy name for US investors, combining leveraged exposure to oil and gas prices with diversification from chemicals and emerging low-carbon ventures. Recent quarterly results underline how sensitive earnings and cash flow are to commodity swings, while management continues to balance debt reduction, capital spending and shareholder distributions. The strong presence of Berkshire Hathaway as a major shareholder adds to the narrative but does not remove the fundamental risks tied to volatile energy markets, regulatory developments and execution on long-term projects. Investors who follow the stock typically weigh these opportunities and uncertainties against their own risk tolerance and time horizon.

Disclaimer: This article does not constitute investment advice. Stocks are volatile financial instruments.