Occidental Petroleum (NYSE: OXY) has received more attention than pretty much any other oil and gas producing company on the market lately. That's what happens, though, when Warren Buffett buys a massive stake. Investors want to know what Buffett sees in the business and whether it is worth adding to their own portfolios.
There is quite a bit to like about Occidental right now, but one lingering question may give long-term investors significant pause. Let's look at what it looks like today, what it wants to do in the future, and whether it is an oil stock to buy.
Occidental's oil and gas business is looking better by the day. After taking a risky bet in 2019 to acquire Anadarko Petroleum, which required a lot of debt and special financing from Berkshire Hathaway, the recent period of high oil prices has helped to improve its financials drastically. According to management, its current operations can support its current dividend as long as domestic oil prices remain above $40, and it has been putting much of its excess cash toward debt reduction.
Source Fool.com