Occidental Petroleum reported mixed Q1 results with earnings per share of $1.06 beating estimates by $0.47, while revenue fell short and free cash flow was negative due to working capital issues. Production exceeded guidance, but the company's long-term debt remains at $13.3 billion, limiting further structural improvements until future cash flow and Berkshire preferred stock redemption occur. The current share price around $59–$60 reflects geopolitical risk premiums and Berkshire's warrants, creating a near-term price ceiling. The stock is considered unattractive for new investment at current levels, with a potential buying opportunity if shares pull back to the low-$50s or progress is made on preferred redemption.
