Since Greg Abel succeeded Warren Buffett as CEO of Berkshire Hathaway on January 1, 2026, market watchers have been looking for clues about how the new leader would chart his own course. The complete exit from Amazon and UnitedHealth Group shares drew considerable attention, yet the portfolio’s real standout performers have been two decidedly traditional energy holdings: Chevron (NYSE: CVX) and Occidental Petroleum (NYSE: OXY).
Through the market close on July 28, Chevron had risen 20.3% and Occidental 27.3% during Abel’s tenure, topping the portfolio’s returns and underscoring how deeply Buffett’s energy convictions continue to resonate.
Chevron, the second-largest integrated energy company in the United States behind ExxonMobil, operates across the full spectrum of upstream exploration and production, midstream transportation and storage, and downstream refining and marketing. This integrated structure provides resilience through commodity cycles and generates the reliable cash flow that Buffett has always prized in a classic “cash cow” investment.
Two other Buffett hallmarks are equally evident in Chevron. The company has delivered a steadily growing dividend, with an average yield of around 4% over the past decade and 39 consecutive years of annual payout increases, putting it on a clear path toward Dividend King status. The commitment to shareholder returns also extends to buybacks: in 2023, the board authorized a $75 billion repurchase program, replacing an earlier $25 billion plan, and at the 2025 Investor Day, Chevron projected annual buybacks of $10 billion to $20 billion through 2030. While Middle East tensions have recently lifted oil prices and provided a short-term tailwind, Chevron’s underlying financial strength is robust enough to support those returns regardless of geopolitical conditions.
Occidental Petroleum, now Berkshire’s seventh-largest holding, entered the portfolio under far more dramatic circumstances. In 2019, Berkshire provided $10 billion to help fund an Occidental acquisition, receiving in return $10 billion in preferred stock carrying an 8% annual dividend. The terms were so lopsided that famed investor Carl Icahn wrote to his shareholders: “The Buffett deal was like taking candy from a baby, and amazingly, she [then-CEO Vicki Hollub] even thanked him publicly for it!” That deal is now delivering a steady stream of returns to Berkshire.
Unlike Chevron’s integrated model, Occidental is heavily weighted toward upstream exploration and production, making it considerably more sensitive to swings in crude prices. That characteristic has been a clear advantage this year, as first-quarter free cash flow surged more than 51% year over year, directly benefiting from higher oil prices. However, that same sensitivity also means Occidental could face a sharper pullback than its integrated peers should geopolitical tensions subside and oil markets stabilize.
Abel has not simply become a Buffett 2.0, but the heavy bet on legacy oil is a conspicuous piece of continuity. One serves as a steady income-generating anchor, while the other provides leveraged offensive upside — together, Chevron and Occidental are delivering the solid performance that underpins this new chapter at Berkshire Hathaway. Over the long run, an integrated giant like Chevron may prove better equipped to weather industry cycles, yet Occidental’s flexibility makes it an ideal complementary holding, and the two energy positions together paint a picture of pragmatic, experienced investment judgment.
