{"id":21405,"date":"2023-08-29T23:56:00","date_gmt":"2023-08-29T15:56:00","guid":{"rendered":"https:\/\/www.granitefirm.com\/blog\/us\/?p=21405"},"modified":"2024-07-12T17:44:42","modified_gmt":"2024-07-12T09:44:42","slug":"occidental-petroleum","status":"publish","type":"post","link":"https:\/\/www.granitefirm.com\/blog\/us\/2023\/08\/29\/occidental-petroleum\/","title":{"rendered":"How does Occidental Petroleum make money? World&#8217;s largest carbon capturer, Betting on geothermal extraction of lithium"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/08\/29\/occidental-petroleum\/#Company_Profile\" >Company Profile<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/08\/29\/occidental-petroleum\/#Introduction\" >Introduction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/08\/29\/occidental-petroleum\/#Major_business_units\" >Major business units<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/08\/29\/occidental-petroleum\/#An_exception_for_Buffett\" >An exception for Buffett<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/08\/29\/occidental-petroleum\/#Why_Buffett_bet_huge_on_Occidental_Petroleum\" >Why Buffett bet huge on Occidental Petroleum?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/08\/29\/occidental-petroleum\/#Wall_Streets_view\" >Wall Street&#8217;s view<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/08\/29\/occidental-petroleum\/#Buffetts_own_opinion\" >Buffett&#8217;s own opinion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/08\/29\/occidental-petroleum\/#Why_keep_increasing_holdings\" >Why keep increasing holdings?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/08\/29\/occidental-petroleum\/#How_many_shares_does_he_has\" >How many shares does he has?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/08\/29\/occidental-petroleum\/#Origin_of_both_parties\" >Origin of both parties<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/08\/29\/occidental-petroleum\/#Excellent_entry_opportunity\" >Excellent entry opportunity<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/08\/29\/occidental-petroleum\/#Fits_Buffetts_Taste\" >Fits Buffett&#8217;s Taste<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/08\/29\/occidental-petroleum\/#Stock_repurchase\" >Stock repurchase<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/08\/29\/occidental-petroleum\/#Redemption_of_preferred_stock\" >Redemption of preferred stock<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/08\/29\/occidental-petroleum\/#Does_Occidental_Petroleum_derail\" >Does Occidental Petroleum derail?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/08\/29\/occidental-petroleum\/#Finding_new_revenue_source\" >Finding new revenue source<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/08\/29\/occidental-petroleum\/#Awarded_Amazons_ten-year_contract\" >Awarded Amazon&#8217;s ten-year contract<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/08\/29\/occidental-petroleum\/#The_practice_of_the_industry\" >The practice of the industry<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/08\/29\/occidental-petroleum\/#Betting_on_geothermal_extraction_of_lithium\" >Betting on geothermal extraction of lithium<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/08\/29\/occidental-petroleum\/#Company_performance_vs_peers\" >Company performance vs. peers<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/08\/29\/occidental-petroleum\/#Business_and_financial_performance\" >Business and financial performance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/08\/29\/occidental-petroleum\/#Sstock_price_performance\" >Sstock price performance<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/08\/29\/occidental-petroleum\/#Related_articles\" >Related articles<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Company_Profile\"><\/span>Company Profile<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Introduction\"><\/span>Introduction<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Occidental Petroleum (ticker: OXY), the company was founded in 1920 and is headquartered in Houston, Texas. It is one of the largest producers of the largest oil field in the United States and the company with the lowest cost (see the table at the bottom of this article for analysis and comparison with Occidental Petroleum&#8217;s peers).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Major_business_units\"><\/span>Major business units<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The company is mainly engaged in the exploration and production of oil and natural gas. It operates through the following business units:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Oil and Gas Sector: The Oil and Gas segment explores for, develops and produces oil and condensate, liquefied natural gas and natural gas.<\/li>\n\n\n\n<li>Chemicals segment: The Chemicals segment manufactures and sells basic chemicals and vinyl.<\/li>\n\n\n\n<li>Midstream and Marketing: The Midstream and Marketing segment buys, markets, gathers, processes, transports, and stores petroleum, condensate, liquefied natural gas, natural gas, carbon dioxide, and electricity.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"An_exception_for_Buffett\"><\/span>An exception for Buffett<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_Buffett_bet_huge_on_Occidental_Petroleum\"><\/span>Why Buffett bet huge on Occidental Petroleum?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In <a href=\"https:\/\/berkshirehathaway.com\/letters\/2023ltr.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Berkshire &#8216;s 2023 shareholder letter<\/a>, he stated: &#8220;At yearend, Berkshire owned 27.8% of Occidental Petroleum\u2019s common shares and also owned warrants that, for more than five years, give us the option to materially increase our ownership at a fixed price. Though we very much like our ownership, as well as the option, Berkshire has no interest in purchasing or managing Occidental. We particularly like its vast oil and gas holdings in the United States, as well as its leadership in carbon-capture initiatives, though<br>the economic feasibility of this technique has yet to be proven. Both of these activities are very much in our country\u2019s interest.&#8221;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Wall_Streets_view\"><\/span>Wall Street&#8217;s view<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The market generally interprets this news as Buffett&#8217;s bet on long-term inflation in the U.S. economy and believes that crude oil prices will remain high for a long time. When oil companies no longer engage in capital expenditure competition, prices will not drop sharply in the long run. The current Occidental Petroleum Company is equivalent to a walking money printing machine.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Buffetts_own_opinion\"><\/span>Buffett&#8217;s own opinion<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Buffett said that when you drill a well, you get a lot of oil very quickly, and then the production slowly drops to zero. He likes Occidental&#8217;s position in the Permian Basin. Occidental Petroleum has many high-quality oil wells, which is a completely different oil business. And because Occidental Petroleum&#8217;s development in the past few years is indeed in line with the commonality of Buffett&#8217;s shareholding.<\/p>\n\n\n\n<p>For the commonality of Buffett&#8217;s holdings, please refer to my previous article analysis: &#8220;&#8221;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/04\/27\/buffett-portfolio\/\" target=\"_blank\" rel=\"noreferrer noopener\">The commonalities of Buffett portfolio \u2013 cheap, fixed income, repurchase<\/a>&#8220;.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_keep_increasing_holdings\"><\/span>Why keep increasing holdings?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Buffett revealed in a media interview on March 7, 2022 that he made the decision to increase his stake after reading the full minutes of Occidental Petroleum&#8217;s fourth-quarter financial report meeting on February 25, believing that the company is doing the right thing .<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_many_shares_does_he_has\"><\/span>How many shares does he has?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In August 2022, Berkshire (tickers: BRK.A and BRK.B) received permission from the Federal Energy Regulatory Commission to purchase up to 50% of Occidental Petroleum&#8217;s common stock. Berkshire needs this authorization because, if exercised, it would exceed FERC&#8217;s 25% ownership cap.<\/p>\n\n\n\n<p>By the end of June 2023, increase Berkshire&#8217;s stake in Occidental Petroleum to 25%, making Berkshire the company&#8217;s largest shareholder. Occidental Petroleum Corporation is one of the few Berkshire companies that hold more than 20% of the company&#8217;s equity. For this part, please refer to the analysis in my other article: &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/02\/20\/companies-buffett-owns-20\/\">The companies Buffett owns more than 20%<\/a>&#8220;<\/p>\n\n\n\n<p>Many people speculated that Berkshire would eventually acquire Occidental; Buffett, however, said he had no intention of buying Occidental outright, but was still happy with his large investment in the oil company.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Origin_of_both_parties\"><\/span>Origin of both parties<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Buffett first invested in Occidental Petroleum in 2019, when Occidental Petroleum was engaged in a bidding war with oil giant Chevron (ticker: CVX ) for peer Anadarko Petroleum (Anadarko). At the time, Occidental Petroleum CEO Vicki Hollub traveled to Omaha, Nebraska, to convince Buffett to provide $10 billion in financing for her bidding war. With Buffett&#8217;s financial support, Occidental Petroleum quickly won the deal.<\/p>\n\n\n\n<p>In exchange, Buffett received a total of $10 billion in Occidental Petroleum preferred stock (yielding 8%), plus warrants to purchase 84 million common shares at $59.62 per share.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Excellent_entry_opportunity\"><\/span>Excellent entry opportunity<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>From the start, the Anadarko acquisition left Occidental heavily indebted (adding more than $30 billion in debt to its balance sheet). Then, as oil prices plummeted after the outbreak, Occidental Petroleum&#8217;s market value plummeted from $50 billion before the acquisition in 2019 to less than $9 billion at the end of 2020. But at the same time, this also provides an excellent entry opportunity for Buffett. The increase in crude oil demand caused by the economic recovery after the epidemic and the conflict between Russia and Ukraine are catalysts for fuel prices. Buffett has frequently increased his positions in Occidental Oil since the beginning of 2022.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Fits_Buffetts_Taste\"><\/span>Fits Buffett&#8217;s Taste<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Occidental Petroleum is a company favored by Buffett. At Berkshire\u2019s shareholder meeting in 2023, Buffett publicly praised Holub\u2019s management of Occidental: \u201cHolub is an outstanding manager of Occidental Petroleum. Or, we like to have Vicki running it.&#8221;<\/p>\n\n\n\n<p>Since the company acquired Anadarko Petroleum in 2019, Holub has been cutting debt and returning money to shareholders.<\/p>\n\n\n\n<p>Holub was the first woman to head a U.S. oil and gas company when she was appointed CEO of Petroleum in 2016. Seven years later, the stock price of Petroleum ranks among the top in the S&amp;P 500 Index.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Stock_repurchase\"><\/span>Stock repurchase<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The CEO of Occidental Petroleum has repeatedly stated publicly that excess free cash flow will be used for stock repurchases, and that stock repurchases have a higher priority than increasing oil production.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Redemption_of_preferred_stock\"><\/span>Redemption of preferred stock<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>By August 2023, Occidental Petroleum has redeemed some of Buffett&#8217;s preferred shares with a face value of US$1.2 billion, equivalent to 12% of Berkshire&#8217;s initial US$10 billion investment<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Does_Occidental_Petroleum_derail\"><\/span>Does Occidental Petroleum derail?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Finding_new_revenue_source\"><\/span>Finding new revenue source<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Occidental Petroleum, whose main business is oil, is investing heavily in carbon capture. Is it not doing business properly? My answer is no, because the world&#8217;s major oil companies believe that the use of oil as energy has no prospects, and are invariably looking for new sources of future revenue for the company.<\/p>\n\n\n\n<p><strong>Please note<\/strong>: Oil still has many uses other than energy, and revenues will still grow, as I mention in my book. This is also the main reason why the market value and revenue of listed oil companies will still increase, and the stock price will not collapse. See the discussion in the following chapters of my book &#8220;<a href=\"https:\/\/www.books.com.tw\/products\/0010935641?sloc=main\" target=\"_blank\" rel=\"noreferrer noopener\">The Rules of 10 Baggers<\/a>&#8221; for details:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Sections 3-7, pp. 166-167, discussion on the energy sector<\/li>\n\n\n\n<li>Sections 6-7, page 323<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Awarded_Amazons_ten-year_contract\"><\/span>Awarded Amazon&#8217;s ten-year contract <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Occidental Petroleum&#8217;s carbon capture subsidiary 1PointFive said on September 12, 2023 that Amazon (US: AMZN) agreed to purchase 250,000 tons of carbon removal credits from Stratos over 10 years. Stratos is a direct air capture plant the company is building in Texas.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_practice_of_the_industry\"><\/span>The practice of the industry<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>One of the most famous examples is Exxon Mobil (ticker: XOM), the world&#8217;s largest oil company, which announced its investment in the lithium industry in May 2023, betting on the vigorous development of electric vehicles and opening up a larger source of revenue for itself.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Betting_on_geothermal_extraction_of_lithium\"><\/span>Betting on geothermal extraction of lithium<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Berkshire Hathaway, owned by Buffett, went directly to joint venture with Occidental Petroleum Company to use innovative direct lithium extraction technology (DLE) to extract lithium resources from geothermal brine in California.<\/p>\n\n\n\n<p>In 2019, BHE Renewable Energy Company began to promote the thermal lithium extraction project in Haiti; in May 2020, the project was approved by the California Energy Commission (CEC).<\/p>\n\n\n\n<p>It is reported that the project utilizes the DLE patented technology of TerraLithium, a wholly-owned subsidiary of Occidental Petroleum, to efficiently and environmentally friendly extract high-purity lithium products from lithium-rich brine. The 10 geothermal power plants operated by BHE Renewable Energy, a subsidiary of Berkshire Hathaway, in California can process 50,000 gallons of lithium-rich brine per minute, providing a unique resource advantage for the project.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Company_performance_vs_peers\"><\/span>Company performance vs. peers<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Business_and_financial_performance\"><\/span>Business and financial performance <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Metrics<\/td><td>OXY<\/td><td>XOM<\/td><td>CVX<\/td><\/tr><tr><td>2022 annual revenue and growth rate (in US$ billion)<\/td><td>36.634 +41.14%<\/td><td>402.217 +44.17%<\/td><td>235.916 +52.14%<\/td><\/tr><tr><td>Gross margin<\/td><td>67.07%<\/td><td>33.24%<\/td><td>38.87%<\/td><\/tr><tr><td>Operating margin<\/td><td>37.3%<\/td><td>17.8%<\/td><td>17.81%<\/td><\/tr><tr><td>Net margin<\/td><td>36.32%<\/td><td>13.86%<\/td><td>15.03%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Sstock_price_performance\"><\/span>Sstock price performance<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Metrics (as of 8\/18\/2023)<\/td><td>OXY<\/td><td>XOM<\/td><td>CVX<\/td><\/tr><tr><td>Share price<\/td><td>63.91<\/td><td>109.56<\/td><td>161.71<\/td><\/tr><tr><td>Market value (in USD billion)<\/td><td>56.52<\/td><td>438.71<\/td><td>308.5<\/td><\/tr><tr><td>P\/E<\/td><td>10.79<\/td><td>8.77%<\/td><td>10.26<\/td><\/tr><tr><td>Yield rate<\/td><td>1.13%<\/td><td>3.32%<\/td><td>3.73%<\/td><\/tr><tr><td>Stock return in past 5 years<\/td><td>-18.68%<\/td><td>+40.03%<\/td><td>+37.23%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"56\" height=\"56\" src=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2023\/08\/oxy.jpg\" alt=\"Occidental Petroleum\" class=\"wp-image-21406\"\/><figcaption class=\"wp-element-caption\">credit: wiki<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Related_articles\"><\/span>Related articles<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/12\/25\/hydrogen-energy\/\" target=\"_blank\" rel=\"noreferrer noopener\">Current progress of hydrogen energy and relevant companies<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/02\/20\/companies-buffett-owns-20\/\">The companies Buffett owns more than 20%<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/04\/27\/buffett-portfolio\/\" target=\"_blank\" rel=\"noreferrer noopener\">The commonalities of Buffett portfolio \u2013 cheap, fixed income, repurchase<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/08\/29\/occidental-petroleum\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does Occidental Petroleum, which Buffett is heavily betting on, make money? Will become the world&#8217;s largest carbon capturer<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/10\/exxon-mobil-x-market-king\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does Exxon Mobil make money? the former market capitalization king<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/01\/18\/nextera-energy\/\">How does Renewable Energy Giant NextEra Energy make money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/05\/03\/should-u-chase-esg\/\" target=\"_blank\" rel=\"noreferrer noopener\">Should investors chase the ESG?<\/a>&#8220;<\/li>\n<\/ul>\n\n\n\n<p><em><strong>Disclaimer<\/strong><\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>The content of this site is the author\u2019s personal opinions and is for reference only. I am not responsible for the correctness, opinions, and immediacy of the content and information of the article. Readers must make their own judgments.<\/em><\/li>\n\n\n\n<li><em>I shall not be liable for any damages or other legal liabilities for the direct or indirect losses caused by the readers&#8217; direct or indirect reliance on and reference to the information on this site, or all the responsibilities arising therefrom, as a result of any investment behavior.<\/em><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Occidental Petroleum is mainly engaged in the exploration and production of oil and natural gas<\/p>\n","protected":false},"author":1,"featured_media":21406,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[808,222,88,80,164,28,11],"tags":[227,48,49,744,745,297],"class_list":["post-21405","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","category-ceo","category-acquisition","category-portfolio-management","category-repurchase","category-us-stock-market","category-buffett","tag-amzn","tag-brk-a","tag-brk-b","tag-cvx","tag-oxy","tag-xom"],"_links":{"self":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/21405","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/comments?post=21405"}],"version-history":[{"count":19,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/21405\/revisions"}],"predecessor-version":[{"id":27341,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/21405\/revisions\/27341"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media\/21406"}],"wp:attachment":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media?parent=21405"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/categories?post=21405"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/tags?post=21405"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}