Occidental (OXY) Stock: Can Buffet’s Interest Fuel the Rally?

Occidental Petroleum Corporation’s price rose close to $60, & Berkshire Hathaway now owns 22% of the company and is growing. They are working hard to realign themselves to a carbon-free future goal in 2021. The company is recognized as 1 of 3 major oil companies that could realistically result in net-zero emissions by 2050.

Occidental made headlines in the 1960s after discovering Lathorp Gas Field in Lathrop, California. In 1993 they exited from coal operation to support the lower carbon future. They are an integrated energy company operating in the US, Middle East, Columbia, and Africa. On a net basis, their US operation accounted for 75%, the Middle East for 19%, and the rest from other bases.

Occidental Working towards Carbon-Free Future

Occidental recently invested in a Texas carbon capture facility and plans on unveiling 1 of 5 supposed carbon sequential hubs in Texas with the capacity to capture 1.2 billion metric tons of CO2. They are also exploring nuclear energy, and lithium extractions, as the importance of Lithium grew 400% for EVS post-pandemic.

Berkshire Hathaway increased its stake in Occidental

Warren Buffet’s Berkshire Hathaway now owns 22% of the company and is expected to grow. Earlier, the giant investor said he might buy more OXY stocks if the price got closer to $60, and he did. As per Q4 filings, Berkshire bought 5.8 million shares worth 200.2 million. They own 22% of the company and are entitled to $144 annual dividends.

Occidental (OXY) – Price Analysis

When writing, OXY was trading at $59.86, with a slight drop of 1.16%. Previous close and open were at $60.56 and $60.33, respectively, while the 52-week change was 7.68%. Revenue grew by 3.87% to $8.22 B, operating expenses dropped by 4.33% to $2.92 B, while net income grew by 25.37% to $1.93 B.

EPS rose 8.78% to $1.61; profit margins increased by 36.32%; operating margin gained 37.30%, while revenue per share jumped by 39.55%. The last earnings were reported on February 27, 2023, where estimated revenue was $8.532 B, and reported was $8.219 B, with a surprise of negative $313.446 M and a drop of 3.67%.

Occidental (OXY) – Chart Analysis

A negative 3.67% revenue earnings and a slower global economy pushed the prices closer to the demand zone. The moving average is also below the downward-sloping trend line; it is expected to stay above the demand zone, consolidating and trying to reach the $63.71 mark.

If the mark is crossed, it shall move north to R1, although it would consolidate for a while before breaking R1. Chances of breaking R2 lie with good news and positive market sentiments.

Disclaimer:

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing