Occidental Petroleum’s stock soared 10.4% in January, outperforming the S&P 500’s 1.4% rise. The surge was driven by higher oil prices, with Brent and WTI benchmarks up 16% and 14%, respectively, marking the first monthly increase in six months.

Rising oil prices were fueled by potential supply disruptions, including the capture of former Venezuelan President Nicolás Maduro and growing tensions between the U.S. and Iran. Occidental Petroleum stands to benefit financially, with increased cash flow enabling debt repayment and shareholder returns.

In addition to oil price gains, Occidental Petroleum closed the $9.7 billion sale of its former chemicals business to Berkshire Hathaway in January. This move reduces debt and gives the company flexibility to focus on growing its oil and gas production, enhancing long-term value for shareholders.

By amending its contract with Western Midstream Partners to a fixed-fee structure, Occidental Petroleum will save money in the near term and have more flexibility to develop its oil and gas assets. The company’s improved financial position and the recent rise in oil prices make it an attractive investment opportunity for long-term growth.

Read more at Yahoo Finance: Why Occidental Petroleum Stock Rocketed More Than 10% in January