Why Occidental Petroleum (OXY) is a Top Choice for Investment in Crude Oil

Occidental Petroleum Corporation (NYSE:OXY) is included among the Best Crude Oil Stocks to Buy According to Hedge Funds.

A leading producer and one of the largest acreage holders in the Permian Basin, Occidental Petroleum Corporation (NYSE:OXY) boasts some of the lowest-cost, longest-life production assets in the US, allowing the company to stay cash flow positive even with crude oil prices in the low $30s per barrel.

Occidental Petroleum Corporation (NYSE:OXY) has fallen by over 8% since the beginning of the year, with investors concerned about the company’s ballooning debt, especially after its $12 billion acquisition of CrownRock in August last year. However, Occidental revealed in May that it had already repaid a total of $6.8 billion in the previous 10 months, reducing its annual interest expense by $370 million.

In fact, the company has already repaid all of its debt maturing in 2025 and has only $284 million maturing over the next 14 months, which should be easy to cover given the company generated $1.2 billion of free cash flow in Q1 2025.

Occidental Petroleum Corporation (NYSE:OXY) also stands out as it is backed by Warren Buffett himself, with Berkshire Hathaway owning a 28.2% stake in the company.

Occidental Petroleum Corporation (NYSE:OXY) is an independent exploration and production company with assets primarily in the United States, the Middle East, and North Africa.

While we acknowledge the potential of OXY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.