Occidental Petroleum Shares Surge 36% Since Greg Abel Became Berkshire Hathaway CEO

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โดย The Motley Fool·

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Occidental Petroleum shares have surged nearly 36% since Greg Abel became CEO of Berkshire Hathaway in January, outperforming the S&P 500's 14% gain and Chevron's 22.5% rise. The rally was fueled by an escalation in the U.S.-Iran conflict that drove crude prices higher, with Occidental's latest quarterly results showing revenue up 57% year-over-year and earnings rising 20-fold. However, further gains depend heavily on a resurgence in oil prices, making Occidental a more binary bet than Chevron, which has a bull case built on Brent crude prices lower than current levels. Occidental has become a pure play on fossil fuel prices after selling OxyChem to Berkshire for $9.7 billion and reducing debt by $6.5 billion. Abel appears content to hold both Occidental and Chevron for now, but changes to Berkshire's portfolio allocations remain possible.

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The article states that the rally was fueled by an escalation in the U.S.-Iran conflict that drove crude prices higher, benefiting Occidental as a pure play on oil prices.

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