🛢️ Occidental Petroleum (OXY) – Big Oil with Buffett’s Backing
Occidental Petroleum, founded in 1920, is one of the largest U.S. oil and gas companies. It explores and produces oil and gas across the U.S., Latin America, and the Middle East, and it’s a growing player in carbon capture technology — a future-facing solution to climate challenges.
🧠 Why OXY Is a Big Stock
🧓 Warren Buffett Owns a Huge Chunk
- Berkshire Hathaway owns 265 million shares (~28.2%) of OXY.
- Buffett also holds warrants to buy 84 million more shares, giving him potential control of ~35%.
- It’s one of Buffett’s top 6 investments — showing high confidence in OXY’s future.
🌍 It’s a Global Energy Giant
- Makes billions of dollars annually in revenue.
- Owns major oil fields and infrastructure, especially in the Permian Basin.
- Has long-term projects in carbon capture and clean energy transition.
📊 WebKarobar-Style Ratings (Easy Format)
| Category | Rating / Insight |
|---|---|
| Company Strength | ⭐⭐⭐⭐ (4/5) – Big, reliable, global |
| Buffett Ownership | ⭐⭐⭐⭐⭐ (5/5) – Strong vote of confidence |
| Profitability | ⭐⭐⭐⭐ (4/5) – Strong margins & cash flow |
| Growth Potential | ⭐⭐ (2/5) – Not fast-growing, but steady |
| Analyst Consensus | 🟡 Hold – Most say keep, not buy/sell |
| Risk Level | 🔶 Medium – Oil price changes affect stock |
| ESG (Green Rating) | ✅ Good – Ahead of many peers in ESG |
💵 Dividend Details (As of July 2025)
| Detail | Info |
|---|---|
| Quarterly Payout | $0.24 per share |
| Annual Dividend | $0.96 per share |
| Dividend Yield | ~2.1 – 2.2% |
| Payout Ratio | ~35–47% of earnings |
| Next Payment Date | July 15, 2025 |
| Safety Grade | A+ – Very reliable |
| Growth | Dividend increased for 4 straight years |
💡 Great for investors who want steady, growing income.
📈 Why OXY Stock Goes Up or Down
| Factor | Impact on Stock |
|---|---|
| Oil Prices Rise | 🔼 Stock goes up |
| Strong Earnings/Production | 🔼 Positive investor reaction |
| Analyst Upgrades | 🔼 Stock rallies |
| Debt Reduction | 🔼 Improves investor confidence |
| Oil Price Drop or High Debt | 🔽 Stock can fall |
OXY’s stock follows oil prices closely. When oil is high, profits jump. Strong earnings and cash flow make investors confident. But if oil prices fall or global demand weakens, the stock can slip.
🏦 Debt Details – Where OXY Stands
| Debt Status | Key Numbers & Info |
|---|---|
| Total Long-Term Debt | ~$25–26 billion (as of Q1 2025) |
| Debt Reduction (since 2024) | Over $6.8B paid down; $2.3B already repaid in 2025 |
| Credit Rating (Fitch) | BBB (Outlook: Positive) |
| Goal | Reduce debt to ~$15B by 2027 |
| Impact | Less debt = lower interest, better credit rating, more investor trust |
Most of this debt came from buying Anadarko (2019) and CrownRock (2024). OXY is now aggressively paying it down, which boosts confidence and lowers future risk.
✅ Final Verdict (WebKarobar Summary)
Occidental Petroleum is:
- A strong, dividend-paying oil company
- Warren Buffett’s trusted long-term pick
- Focused on cleaner energy solutions
- Actively reducing its debt
- Great for income investors and those who want stable, large-cap exposure to the energy market
🧭 It may not grow like a tech stock, but it’s a solid performer backed by global operations, smart leadership, and one of the world’s most famous investors.