Occidental Petroleum has turned out to be quite the value for Warren Buffett’s Berkshire Hathaway. But is it a good deal for everyone else?
High oil and gas prices have been especially good for Occidental, whose production is unhedged, unlike some of its independent oil-and-gas-producing peers. The company squeezed out nearly $3.8 billion in net profit in the second quarter, about 16% higher than what analysts polled by Visible Alpha had been expecting. It generated $4.2 billion of free cash flow before working capital—a quarterly record.