Occidental Petroleum (OXY, Financial), favored by Warren Buffett (Trades, Portfolio), reported better-than-expected first-quarter earnings for 2025. The company’s sales grew 14% year-over-year to $6.84 billion, slightly above the analyst forecast of $6.83 billion. Earnings per share rose 38% to $0.87, surpassing the expected $0.78, marking the fourth consecutive quarter of exceeding expectations.
CEO Vicki Hollub highlighted the company’s operational excellence and strong free cash flow, emphasizing ongoing debt reduction efforts. Occidental has been focusing on improving its balance sheet, having reached its short-term debt reduction target by the end of the previous year. The company reported a 19% increase in daily production to 1.391 million barrels of oil equivalent and expects second-quarter production between 1.377 million and 1.417 million barrels.
Occidental also reduced its 2025 capital expenditure guidance by $200 million and domestic operating costs by $150 million, attributed to efficiency improvements in the Permian Basin and the Gulf of Mexico. Year-to-date, the company has repaid $2.3 billion in debt, with only $284 million remaining due in the next 14 months.
Berkshire Hathaway, led by Buffett, holds a 28.2% stake in Occidental, valued at $12.4 billion, along with $8.5 billion in preferred shares. Despite having the option to increase its stake, Buffett has indicated no intention to acquire the company.