Growth Stock Portfolio: 12 Stock Picks By Warren Buffett

7. Occidental Petroleum Corporation (NYSE:OXY)

5-year average revenue growth (YoY): 11.94%

Occidental Petroleum Corporation (NYSE:OXY) is among the biggest independent producers of gas and oil in the world. Its upstream activities are spread throughout North Africa, the Middle East, and the US.  The company claimed to have net proven reserves of around 4 billion barrels of oil equivalent at the end of 2023. In 2023, net production reached 1,234 thousand barrels of oil equivalent per day on average, with around 50% of the output coming from natural gas and 50% from oil and gas liquids.

One of the biggest producers of oil and gas (O&G) in the US, Occidental Petroleum Corporation (NYSE:OXY) also runs subsidiaries in the chemical and renewable energy industries. It owns a majority equity stake in Western Midstream and operates a consolidated midstream business that offers gathering, processing, and transport services to the upstream segment. The portfolio also consists of a chemical company that manufactures PVC and caustic soda. The latter segment’s profitability is dependent on the health of the overall economy, although it enjoys lower energy and ethylene costs.

By making significant investments in carbon capture technology, the company has positioned itself as a progressive leader in the energy sector, supporting the objectives of the global energy transition. The company’s excellent cash flow, prudent management, and strategic approach position it for future growth, even though an immediate increase in oil prices may not be anticipated. Despite market volatility, Occidental Petroleum Corporation (NYSE:OXY) is a great possibility for long-term investors because it provides an appealing risk-reward ratio at its current value.

Furthermore, Occidental Petroleum Corporation (NYSE:OXY) is an excellent choice for investors due to its dividend policy. For the past 45 years, the business has been paying dividends to stockholders on a regular basis.