10 Best Energy Stocks To Buy According to Hedge Funds

6. Occidental Petroleum Corporation (NYSE:OXY)  

Number of Hedge Fund Investors: 62  

Occidental Petroleum Corporation (NYSE:OXY) is a U.S.-based oil and gas exploration company with operations in the U.S., the Middle East, and Latin America. The company is well-regarded for its strong presence in shale oil production, particularly in the Permian Basin located in the southwestern United States, the DJ basins, and the offshore Gulf of Mexico.

Occidental Petroleum Corporation (NYSE:OXY) is one of the biggest producers of oil in the Permian Basin, where it owns roughly 2.8 million net acres of land. On August 1, Occidental Petroleum (NYSE:OXY) announced the completion of its acquisition of CrownRock for approximately $12 billion. This acquisition was primarily motivated by CrownRock’s assets in the Midland Basin, which complement Occidental Petroleum’s (NYSE:OXY) focus in the Permian Basin. The acquisition resulted in a 33% increase in Occidental Petroleum Corporation’s (NYSE:OXY) inventory of breakeven locations for prices below $40 per barrel. The outlook for production growth at Occidental Petroleum (NYSE:OXY) appears favorable.

Occidental Petroleum (NYSE:OXY) is also focusing on its debt reduction and divestiture goals. As of Q3, the company achieved a $3 billion reduction in principal debt. A recent public offering of a portion of Occidental Petroleum’s (NYSE:OXY) common units in Western Midstream Partners, raised $700 million, bringing the company’s total divestments for 2024 to approximately $1.7 billion in closed or announced deals.