Why Warren Buffett Likes Occidental Petroleum

From the February 25, 2022 Occidental Petroleum earnings call:

Occidental Petroleum CEO Vicki Hollub:

Occidental “will invest in our highest-return assets to generate long-term sustainable free cash flow. The long-term sustainability of our dividend will be enhanced by continued deleveraging and share repurchases.”

“We intend to provide our shareholders with a competitive common dividend while maintaining a long-cycle cash flow breakeven at $40
WTI or less. The long-term sustainability of our dividend will be enhanced by continued deleveraging and share repurchases as well as
our best-in-class capital efficiency and a deep low-cost portfolio of assets. As debt is retired, our cash interest payments will decrease,
freeing up cash that can be used to support future common dividend growth.”

“By executing on the capital plan that invest in our highest-return assets to generate long-term sustainable free cash flow.”

” We now expect that our net debt will be below $25 billion by the end of the first quarter of 2022, which will mark a change in how excess cash flow will be allocated going forward.”

“The long-term sustainability of our dividend will be enhanced by continued deleveraging and share repurchases as well as
our best-in-class capital efficiency and a deep low-cost portfolio of assets. As debt is retired, our cash interest payments will decrease,
freeing up cash that can be used to support future common dividend growth.”

“It is our goal to reward shareholders with the triple benefit of a sustainable common benefit, an active share repurchase program, and a
continuously strengthening financial position. We believe the shareholder return framework we have detailed this afternoon delivers
these benefits in a manner that is transparent for shareholders.”