Occidental Petroleum Corporation (NYSE:OXY) is included in our list of the best Warren Buffett stocks.
An oil drilling platform. Photo by Jan-Rune Smenes Reite on Pexels.
Buffett added Occidental Petroleum Corporation (NYSE:OXY) to his portfolio in 2019, when the billionaire made the investment to help the oil producer fund its acquisition of Anadarko Petroleum. The initial stake comprised 7.47 million shares valued at $332.08 million, making the stock Warren Buffett’s 39th biggest holding as of Q3 2019. Berkshire now owns 264.94 million shares worth $10.89 billion as of the fourth quarter of 2025.
Meanwhile, Occidental Petroleum Corporation (NYSE:OXY) enjoys the confidence of other hedge funds, with 67 out of 1,041 hedge funds remaining bullish on the stock. The combined hedge fund stake in the company totals $12.03 billion as of Q4 2025.
As of the same period, billionaire sentiment remains strong as well, with 24 out of 107 billionaires remaining bullish on the stock, which translates into stakes worth $11.78 billion in the stock.
Occidental Petroleum Corporation (NYSE:OXY)’s investment case reflects an increasingly disciplined operator with strong exposure to oil prices but with a higher beta.
Jim Cramer described Occidental Petroleum Corporation (NYSE:OXY) as a “higher risk way to play the price of crude,” noting that it tends to rally sharply when oil prices rise and decline when they weaken, highlighting its close linkage to commodity trends. The stock jumped to its 52-week high by the end of March, after climbing around 20% since the Iran war started in late February. As of April 20, 2026, the company’s shares are up over 30% in 2026 so far, slightly outperforming the Oil & Gas E&P industry’s 20% gain.
Cramer highlighted a cautious forecast for Occidental Petroleum Corporation (NYSE:OXY) depending on the Iran conflict, as he commented:
“People do that. Instead of buying a crude index, they buy Occidental. When oil goes higher, this stock rallies hard, but when oil comes down, the stock gets pulverized. Basically, OXY’s a big loser if peace breaks out and a big winner if Iranians insist on keeping the Strait closed.”
That sensitivity is accompanied by improving fundamentals.
In its fourth-quarter 2025 earnings call, CEO Vicki Hollub described 2025 as an “exceptional year,” highlighting $4.3 billion in free cash flow despite lower oil prices, record production of 1.4 million BOE/day, and $275 million in operating cost reductions.
Management also pointed to $2 billion in cumulative cost savings since 2023, with an additional $500 million expected in 2026. This is supported by a 16.5 billion BOE resource base with more than 30 years of low-cost inventory, 84% of which breaks even below $50 per barrel.
Mott Capital, an investment firm, noted that Occidental Petroleum Corporation (NYSE:OXY) provides direct exposure to a potential rebound in oil prices, supported by concentrated ownership, which also includes Warren Buffett’s Berkshire Hathaway holding more than 26% of the shares.
Amid improvements in the balance sheet, lower sustaining capital, and expected free cash flow growth, Occidental Petroleum Corporation (NYSE:OXY) appears well-positioned to capture greater upside in a strengthening oil environment, while enhancing its future resilience.
Occidental Petroleum Corp. (NYSE:OXY) is a US-based international oil and gas company that has operations in the US, the Middle East, and North Africa.
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