11 Best Natural Gas Stocks To Buy Now

2. Occidental Petroleum Corporation (NYSE:OXY)

Number of Hedge Fund Holders: 71

Occidental Petroleum Corporation (NYSE:OXY) is one of the largest oil and gas producers in the United States. With a position of approximately 2.8 million net acres in Texas and New Mexico, the company’s combined Permian Basin portfolio of conventional and unconventional acreage differentiates it from its competitors.

Occidental Petroleum Corporation (NYSE:OXY) completed the $12 billion acquisition of CrownRock last year, significantly expanding its footprint in the Permian and Midland basins. While the acquisition price included CrownRock’s existing debt of $1.2 billion, OXY funded the acquisition with $9 billion of new debt. This, coupled with declining oil prices, caused the company’s share price to fall by over 17% in 2024. However, thanks to its CrownRock acquisition, the oil major’s Q3 oil production rose 15.7% to 1.4 million barrels of oil and gas per day. It also managed to generate $1.5 billion of free cash flow before working capital, exceeding guidance in all three segments. OXY also repaid $4 billion of debt during the quarter and remains fully committed to achieving its medium-term principal debt target of $15 billion.

Another thing to note is that despite the falling stock price of Occidental Petroleum Corporation (NYSE:OXY) last year, Warren Buffett’s Berkshire Hathaway consistently bought shares in the company throughout 2024, even in the $60s per share price range, further reinforcing confidence in the OXY’s long-term potential.