OXY

Occidental Petroleum Corporation (NYSE: OXY) is a prominent energy company engaged in the exploration and production of oil and natural gas, with operations spanning the United States, Latin America, and the Middle East. As of February 14, 2025, the stock is trading at $48.35, reflecting a slight increase of 0.98% from the previous close.

Recent Developments:

  • Berkshire Hathaway's Investment: Warren Buffett's Berkshire Hathaway has recently increased its stake in Occidental Petroleum by purchasing an additional 763,000 shares at an average price of $46.82 each, bringing its total ownership to approximately 28.3%. This move underscores Berkshire's confidence in Occidental's long-term prospects.

  • Joint Venture Renewal: Occidental has renewed its joint venture with Colombia's Ecopetrol in the Permian Basin. The agreement includes plans to drill about 91 development wells in 2025, with an investment exceeding $880 million, highlighting Occidental's commitment to expanding its production capabilities.

Financial Performance and Outlook:

Analysts have set expectations for Occidental's Q1 2025 earnings, with Roth Capital projecting earnings of $0.98 per share, up from a previous forecast of $0.80. The consensus estimate for full-year earnings stands at $3.34 per share. The company's strong performance in the Permian Basin and efforts in debt reduction are anticipated to positively impact its financial results.

Analyst Ratings:

The stock has received mixed ratings from analysts, with 10 Buy, 28 Hold, and 2 Sell recommendations. The average price target over the next 12 months is $60.23, suggesting potential upside from the current trading price.

Investment Considerations:

Occidental's strategic initiatives, including partnerships and asset acquisitions, position it for growth in the energy sector. However, investors should be mindful of the company's debt levels and the inherent volatility in oil and gas markets. The continued support from major investors like Berkshire Hathaway may provide additional confidence in the company's direction.

Please note that investing in the stock market involves risks, and it's essential to conduct thorough research or consult with a financial advisor before making investment decisions.