Occidental Petroleum Continues to Demonstrate Why Warren Buffett's Company Sees So Much Value in the Oil Stock
Occidental Petroleum (NYSE: OXY) has grabbed the attention of Warren Buffett's company, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). That's abundantly clear in Berkshire's buying binge of Occidental's stock. Buffett's company recently bought another $35.7 million of the oil stock, boosting its stake to 28.8% of its outstanding shares. That makes Occidental its sixth largest holding, at 4.3% of its investment portfolio. Those who wonder what Buffett's company sees in Occidental need to look no further than the oil stock's recent quarterly report. Here's a closer look at that report and what's ahead for the energy company.Occidental Petroleum produced an average of nearly 1.5 million barrels of oil equivalent (BOE) per day (BOE/d) in the fourth quarter, exceeding the mid-point of its production guidance by 13,000 BOE/d. The company delivered record U.S. production, led by strong growth in the Permian Basin and Rockies region. That helped offset lower oil prices during the period. Occidental's oil and gas segment posted pretax income of $1.2 billion, flat with the third quarter despite a 7% decline in the average price it realized for the oil it sold in the period. Continue reading
Occidental Petroleum (NYSE: OXY) has grabbed the attention of Warren Buffett's company, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). That's abundantly clear in Berkshire's buying binge of Occidental's stock. Buffett's company recently bought another $35.7 million of the oil stock, boosting its stake to 28.8% of its outstanding shares. That makes Occidental its sixth largest holding, at 4.3% of its investment portfolio.
Those who wonder what Buffett's company sees in Occidental need to look no further than the oil stock's recent quarterly report. Here's a closer look at that report and what's ahead for the energy company.
Occidental Petroleum produced an average of nearly 1.5 million barrels of oil equivalent (BOE) per day (BOE/d) in the fourth quarter, exceeding the mid-point of its production guidance by 13,000 BOE/d. The company delivered record U.S. production, led by strong growth in the Permian Basin and Rockies region. That helped offset lower oil prices during the period. Occidental's oil and gas segment posted pretax income of $1.2 billion, flat with the third quarter despite a 7% decline in the average price it realized for the oil it sold in the period.
