Occidental Petroleum (NYSE: OXY) is a buy in Q4 2025, not because its results and outlook are particularly robust, but because they affirm the investment thesis established when Berkshire Hathaway began buying stock nearly four years ago. That is a thesis of growth, with improvements in operational quality, profitability, cash flow, and shareholder value.
Key takeaways from the Q3 release include another debt repayment, which significantly reduced net debt compared to the same period last year and last quarter—by 18% and 10%, respectively—freeing up cash flow and improving the capital return outlook. Another critical detail is that the sale of OxyChem, coincidentally to Berkshire Hathaway, will provide a nearly $10 billion cash injection, improve the operating margin, and allow for another significant debt reduction and subsequent improvement in shareholder value.
