Warren Buffett came to the rescue of Occidental Petroleum (NYSE: OXY) in 2019 when the company was financially struggling through an acquisition. But what started as an opportunistic deal could be turning into a long-term marriage; Buffett recently received permission to acquire as much as 50% of the company's shares.

Buffett's holding company Berkshire Hathaway is no stranger to the oil and gas industry, and here is why Occidental could be an excellent fit for the company's long-term portfolio.

Occidental Petroleum is an upstream oil and gas company, which means it deals in the exploration for and extraction of oil and gas from the ground. Upstream companies then sell these materials, which makes them very sensitive to the commodity prices on the market. Occidental has positioned itself to remain profitable in a volatile market, claiming it can grow its dividend even if crude falls to $40 per barrel.

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Source Fool.com