Occidental Stock Rises on Record $4.7 Billion Quarterly Profit

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Shares of

Occidental Petroleum
,
one of the biggest producers of U.S. onshore oil and gas, were rising after the company reported record quarterly profit as concerns about global energy supplies lifted prices.

Occidental’s (ticker: OXY) first-quarter profit rose to a record $4.7 billion on the back of a 65% increase in realized oil prices in the period, despite seeing production fall back.

Russia’s invasion of Ukraine in February caused crude prices to rise worldwide. While West Texas Intermediate crude, the U.S. benchmark, has fallen back some in the past few weeks, it is still up more than 50% in the past year. WTI rose 2.4% to $102.14 on Wednesday.

The spike in prices has bolstered oil companies everywhere. But Occidental’s huge footprint in the Permian Basin of west Texas and New Mexico, which allows it to produce 80% of its oil in the U.S., gives it more security than those who rely more on fields overseas.

Berkshire Hathaway

(BRK.B), the conglomerate run by billionaire investor Warren Buffett, has increased its stake in Occidental to 15.2%. Buffett said it was a bet on the Permian Basin and on oil prices remaining elevated.

Occidental plans to use some of its cash to step up debt repayments after buying rival Anadarko Petroleum in 2019.

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