Oil stocks are supposed to be boring. Then Warren Buffett turns one into a soap opera.

Berkshire Hathaway now owns roughly 28% of Occidental Petroleum’s common stock—about 265 million shares. Layer in the 8% yielding preferred shares and those 83.9 million warrants struck around $59.60, and Berkshire’s economic interest creeps north of 30%. And thanks to prior regulatory approval, it could go as high as 50% if Buffett (now Chairman, with Greg Abel as CEO) ever felt like it.

The question isn’t whether Buffett likes OXY. He clearly does. The question is whether you should still like it at this point—or whether the easy money has already been made.

The bull case: This isn’t just about oil

Buffett didn’t buy OXY as a meme trade on $120 crude. He started accumulating in size when shares were in the $50–$60 range and kept buying even after volatility. In early 2025, Berkshire added shares around $46–$47. That’s not chasing. That’s conviction.

Occidental today is a different animal than the debt-choked company that swallowed Anadarko in 2019. The recent $9.7B sale of OxyChem to Berkshire—completed in January 2026—wasn’t random. It was strategic. OXY uses $6.5B of that to hammer down debt, targeting sub-$15B levels. Less leverage. More flexibility. Cleaner balance sheet.

And then there’s the quiet bet most retail investors ignore: carbon capture. CEO Vicki Hollub has positioned Occidental as a leader in direct air capture. Buffett has praised management repeatedly. He’s not betting on oil prices spiking forever; he’s betting on a disciplined operator with long-life Permian assets and optionality in carbon management.

Add it up: solid dividend (around 1.8%), aggressive debt reduction, strong free cash flow when oil is above breakeven levels, and a strategic backstop in Omaha that’s not going anywhere.

That’s not a meme stock. That’s a long-duration asset.

The bear case: You’re not Buffett

But here’s the uncomfortable truth: Buffett’s deal terms are better than yours.

He collects billions in preferred shares yielding 8%. He holds warrants at roughly $59.60. He bought size during downturns. He has the balance sheet to wait out oil cycles. You don’t.

And oil is still oil. Cyclical. Geopolitically messy. Tied to global demand that can wobble fast if China slows or recession hits. If crude slips into the $50s for an extended stretch, OXY’s cash flow shrinks quickly. Debt may be falling, but it’s not gone.

Also, with Berkshire already owning nearly a third of the company, the “Buffett premium” is baked in. Every time he files a Form 4, the stock pops. That tailwind won’t last forever. At some point, ownership concentration limits incremental surprise.

This is no longer a turnaround story. It’s a mature, capital-disciplined oil producer with a powerful shareholder. The asymmetry isn’t what it was in 2022.

So, is it still a buy?

Yes—but not as a get-rich-quick play.

Occidental makes sense for investors who want exposure to oil with management discipline and a built-in long-term partner in Berkshire. It doesn’t make sense for those expecting a repeat of the post-pandemic energy moonshot.

The easy money was made when OXY was drowning in debt and trading like it might not survive the next oil downturn. Today, it’s steadier. Cleaner. Less dramatic.

Buffett isn’t buying because it’s flashy. He’s buying because it throws off cash and has staying power.

If you want adrenaline, look elsewhere.

If you want a durable oil bet with a billionaire quietly accumulating in the background, Occidental still deserves a spot on the watchlist.

Just don’t expect fireworks. Expect compounding.

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