Why this top Warren Buffett oil stock is soaring

Warren Buffett-backed Occidental Petroleum (NYSE: OXY) saw its shares fly 9% higher in the last 24 hours as the equity rose to its February 20 press time price of $51.51.

OXY shares’ rally was driven by an exceptionally impressive February 19 earnings report, spearheaded by a massive earnings per share (EPS) beat. Specifically, Occidental Petroleum recorded an EPS of $0.31 rather than the forecasted $0.18-0.19.

Other contributing factors include a substantial reduction in corporate debt to $15 billion following the sale of OxyChem. Overall, Occidental Petroleum was able to retire nearly $14 billion in debt in just 20 months.

Elsewhere, the company both announced an increase in oil production and raised its dividend yield by 8% to $0.26. Notably, despite the overwhelmingly positive results, Occidental Petroleum underperformed in terms of revenue, as it recorded $5.42 billion, while the forecasts were estimating $5.88 billion.

OXY stock rally reinforces 2026 energy sector outperformance

OXY stock’s latest rally also serves to reinforce the overall strength of the energy sector and the fossil fuel industry in particular. 

Since 2026 started, oil giants have been outperforming the rest of the market, driven by tailwinds arising from President Donald Trump’s Administration, gaining access to new fields, but also extreme instability in oil-rich regions.

Overall, the S&P 500 is up just 0.05% year-to-date (YTD), but the benchmark index’s energy component is up 20.33% within the same time frame.

How much Warren Buffett made on Occidental Petroleum stock bet

As for Warren Buffett and his Berkshire Hathaway (NYSE: BRK.A, BRK.B), the decision to hold OXY stock through the fourth quarter (Q4) of 2025 is proving highly lucrative.

In the most recent 13-F filing, it was revealed that ‘The Oracle of Omaha’ held 265 million Occidental Petroleum shares on December 31, worth approximately $10.9 billion.

Considering OXY stock was changing hands at $41.12 on the final day of 2025 and assuming there were no changes in Berkshire’s position since, Buffett is up $2.7 billion YTD.

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