Occidental Petroleum Issues Statement Regarding Icahn Filing (Seite 3) | Diskussion im Forum

[massny]

Occidental Increases Dividend

Verfasst von globenewswire

HOUSTON, Feb. 08, 2024 (GLOBE NEWSWIRE) -- Occidental (NYSE: OXY) announced today that its Board of Directors declared a regular quarterly dividend of $0.22 per share on common stock, payable on April 15, 2024, to stockholders of record as of the close of business on March 8, 2024. On an annual basis, the dividend is $0.88 per share at the new rate, compared to the previous annual rate of $0.72 per share.

Occidental is an international energy company with assets primarily in the United States, the Middle East and North Africa. We are one of the largest oil and gas producers in the U.S., including a leading producer in the Permian and DJ basins, and offshore Gulf of Mexico. Our midstream and marketing segment provides flow assurance and maximizes the value of our oil and gas. Our chemical subsidiary OxyChem manufactures the building blocks for life-enhancing products. Our Oxy Low Carbon Ventures subsidiary is advancing leading-edge technologies and business solutions that economically grow our business while reducing emissions. We are committed to using our global leadership in carbon management to advance a lower-carbon world. Visit oxy.com for more information.

Das ist ja mal cool, erneute Dividenden Anhebung, der Waren weiß schon was er tut,
und das wird nicht die letzte Anhebung sein

und solangsam laufe ich mit meinem EK von 21,40 Euro doch in eine vernünftige
Dividenden Rendite rein.

[mp2019]

Oil prices rise as U.S. crude production is seen growing more slowly this year

Occidental Petroleum

CEO Vicki Hollub told CNBC this week that although the market is currently oversupplied, the world will face a major shortage by the end of 2025 because crude reserves aren’t being replaced fast enough.

“We’re going to be in a situation now where in a couple of years’ time we’re going to be very short supply,” Hollub told CNBC.

Oil traders are also monitoring developments in the Middle East this week as U.S. Secretary of State Antony Blinken consults with U.S. allies in the region in an effort to secure a truce in the Gaza war.

The market is also watching for further U.S. strikes against Iranian forces and its militia allies in retaliation for the death of three American troops in Jordan in late January.

https://www.cnbc.com/2024/02/07/oil-prices-today.html

[mp2019]

Oil market will face supply by end of 2025, Occidental CEO says

The oil market will face a supply shortage by the end of 2025 because the world is not replacing crude reserves fast enough, Occidental CEO Vicki Hollub said.
About 97% of the oil produced today was discovered in the 20th century, she told CNBC.
The world has replaced less than 50% of the crude produced over the last decade, she said.
“We’re in a situation now where in a couple of years’ time we’re going to be very short on supply,” Hollub said.

https://www.cnbc.com/2024/02/05/oil-market-will-face-supply-…

[mp2019]

Kolumne
Öl-Firma Warum Warren Buffett in diese Cash-Maschine Millionen investiert


https://www.capital.de/geld-versicherungen/oel-firma--warren…

[mp2019]

Occidental Petroleum: Why I Believe The Stock Is A Steal Today

Thee oil market is influenced by geopolitical risks and well-supplied oil stocks, leading to indecision among investors. But I think it's a temporary headwind for OXY and the energy sector.
Occidental's recent results reflect lower earnings amid decreased commodity prices. Despite this, OXY's stable debt and liquidity ratios suggest resilience. I anticipate a production expansion amid oil prices stabilizing.
Even after adjusting for the acquisition of CrownRock, the OXY stock is 25% undervalued, according to my calculations.
Despite risks and uncertainty, and despite being underweighted by hedge fund managers, I see these moments as opportunities for creating winning stock positions. OXY is a 'Buy'


https://seekingalpha.com/article/4665832-occidental-petroleu…

[mp2019]

Occidental Petroleum: A Low CAPEX, Low Yield, High Free Cash Flow Buy


Looking at the company from a CAPEX to non-cash expense ratio, Occidental looks like one of the cheapest of their peer group.
Although the company currently has a low dividend yield, buybacks and free cash flow growth should tell a different story in the future.
This is another story looking to successfully reduce debt and strengthen its balance sheet.
The company is poised to be a leader in the race to carbon neutral, anticipating having excess carbon credits to sell into the market which is ever growing.

Groningen Oil and gas processing plant

The only oil name Berkshire seems to love

I haven't delved into oil and gas names seriously for quite some time. I had been tricked in the past investing at the top of the cycle when Warren Buffett and Bill Gates both were buying Exxon (XOM) hand over fist. Oil was supposed to be headed north of $100 a barrel. Didn't happen as usual and the stock traded sideways until the crash during Covid.

Now Berkshire Hathaway (BRK.B)(BRK.A) seems infatuated with accumulating Occidental Petroleum, (NYSE: OXY). It doesn't pay anywhere near the dividend rate of its large-cap brethren, at 1.28%, but it does buy back a lot of shares. The most eye-popping stat I could pull when comparing Occidental to Chevron (CVX) and Exxon, was that the company had the lowest CAPEX as a percentage of Depreciation and Amortization, opening the door for more clear-cut "owner earnings" or free cash flow.

If you have read The Warren Buffett Way, By Robert Hagstrom along with the compilations of letters and essays in The Essays Of Warren Buffett, you realize that Buffett has most dear to his heart an obsession for companies that can achieve non-cash expenses above capital expenditures consistently. Occidental Petroleum seems to be right up that same alley.
What they do

From the 10K:

Occidental’s principal businesses consist of three reporting segments: oil and gas, chemical and midstream and marketing. The oil and gas segment explores for, develops and produces oil (which includes condensate), NGL and natural gas.

The chemical segment primarily manufactures and markets basic chemicals and vinyls. The midstream and marketing segment purchases, markets, gathers, processes, transports and stores oil, NGL, natural gas, CO and power. It also optimizes its transportation and storage capacity, and invests in entities that conduct similar activities, such as WES.

The midstream and marketing segment also includes OLCV. OLCV seeks to leverage Occidental’s legacy of carbon management expertise to develop CCUS projects, including the commercialization of DAC technology, and invests in other low-carbon technologies intended to reduce GHG emissions from its operations and strategically partner with other industries to help reduce their emissions.

The story up to here

The company acquired Anadarko Petroleum in 2019 with the Assistance of Berkshire Hathaway which infused the deal with $10 Billion in cash for preferred shares yielding 8%. They were able to beat out Chevron in the bid. The amount of interest is much more expensive than other debt and Berkshire has taken some of the payments in the form of equity. Anadarko provided a great portfolio of US oil and gas assets to the portfolio.

Therefore we can see in addition to the pricing of Occidental, Berkshire Hathaway has other interests at stake including warrants.


Chart
Data by YCharts

Some nice gaps emerge when comparing Occidental's 10-year price appreciation versus EPS growth and free cash flow growth. While earnings per share on a GAAP basis have been jagged, free cash flow growth looks stable and has much better growth than the negative -30.36% share price would allude to.
The chart



Out of the 3 comps we are looking at today, Occidental also is trading at the furthest off its' all-time highs. Just from that perspective alone, I have started to become intrigued.
The EV story seems set for a pullback

One other reason I have been re-attracted to oil and gas has been the slowdown in all things related to electric vehicles. While Tesla (TSLA) is the clear front runner in vehicle sales, their materials suppliers are starting to tell a different story about the headwinds the industry in general will be facing.

Panasonic (OTCPK:PCRFY)(OTCPK:PCRFF) has canceled the possible build of an additional Oklahoma battery plant. Lithium giant Albemarle (ALB) is cutting capital spending amidst a glut of lithium supply at suppressed prices.

I never believed EVs were a threat to oil consumption in general, but it changes market perception when you see those headlines.
Valuations with comps

Firstly, just looking at a valuation comp set based on the aforementioned "owner earnings" discount, we can see that Occidental Petroleum is trading the most cheaply out of the group at 44% of intrinsic value.

As a note, the Owner Earnings discount typically uses the risk-free rate rather than adjustments for CAPM if the cash flows are stable. Warren Buffett would add a couple of points if he believed the risk-free rate was too low. With rates expected to decline, multiples could expand.

All numbers TTM courtesy of Seeking Alpha in Millions
STOCK NET INCOME Plus D&A Minus CAPEX OWNER EARNINGS

However, if we pit these companies against each other using the Graham Number, or the square root of 22.5 X TTM EPS X Book value we get a bit of a different story. Since Occidental is trading at the highest relative book value of the lot, they get dinged a bit on this metric and look 8% overvalued.

But, Occidental is one of those efficient companies with higher free cash flow per share or owner earnings than GAAP earnings at $7.59/share in TTM free cash flow. Using that metric instead of GAAP EPS puts intrinsic value at $63.95 a share. While oil and gas seems to be a very capital-intensive business, there seem to be some efficiency advantages that Occidental is at least currently enjoying that warrant exploration.
Goal orientation

OXY Investor Relations goals


This graphic lays out quite clearly the beyond 2023 goals of what to do with excess capital, buyback shares and pay-down debt.

Looking at the last 3-year trajectory of share buybacks, we can see that Occidental is best in this group with almost a 6% reduction. However, due to equity financing in the Anadarko deal, pref supplement payments in equity, and others, shares were at an all-time high in 2021 at 934 million shares. It will be a while before shares get back to the mid-700 million level seen before the acquisition.

However, Occidental was also able to retire a significant portion of debt in the past few years getting its leverage ratio back to where it needs to be for investment-grade debt.


Again, the company may be more leveraged than the other operators compared here, but this is a massive reduction in long term debt from over $36 Billion to under $20.
Revenue sources

OXY Q3 10Q

Occidental Petroleum is overweight oil and gas revenue exposure with 84% of the overall oil and gas mix coming from oil revenue. The lion's share comes from United States production with a large chunk via Anadarko. Occidental is one of the leaders in Permian basin oil production at #7. This in itself is a minor moat as barriers to entry for new U.S. oil production are near impossible. This is also a large feat for the company being that the market cap is only around $50 Billion while Exxon and Chevron are closer to $300 Billion.

Occidental is taking net zero seriously



Whether we agree with the hits to profitability that the Paris Agreement and other climate initiatives are impugning upon traditional oil and gas operations, all operators should have a plan in place. Access to financing will one day be dependent upon ESG initiatives. CO2 hub storages across the US are set to come online by 2025. The company has several green initiative partnerships set up, including lithium production similar to Exxon.
The dividend

The yield is substantially smaller than other industry majors, but when compared to free cash flow, there is ample room for growth. At .72 cents a share FWD but producing $7.59 / share in free cash flow on a TTM basis, you can see all the potential for massive dividend growth once the balance sheet gets in order. The company is prioritizing buybacks and debt pay down after the mentioned acquisition and investors just need to be patient. Once the float and debt initiatives are met, outsized return of capital increases via cash dividends seems like a good bet.
Growth trajectories

From the Q3 earnings transcript:

Our accomplishments to date have positioned us as a DAC technology and market leader. The next phase of our DAC strategy is focused on growth through accelerating cost reduction and expanding partnerships. With full ownership of Carbon Engineering's technology now in-house, we expect to supplement and support the highly talented Carbon Engineering team to accelerate the innovations that ultimately reduce the cost to capture years earlier than initially anticipated. By pairing the strengths of Carbon Engineering, Oxy Major Projects and OxyChem, we will continue to reduce costs for the life of the plant.

Growth in the chemical segment, OxyChem, seems to be a growth focus for both the company and analysts. At 18% of the revenue mix, this is a second-place pecking order cash generator below oil production. The refineries are amongst the biggest complaints when it comes to carbon and other chemical air pollution. Having an in-house carbon capture solution, reducing operating costs of the plants and overall CAPEX is in line with what I be;lBerkshire Hathaway likes to see. The company also estimates it may have excess carbon credits because of how far along in the process they are:

Future regulatory and compliance frameworks that cap emissions growth are driving companies in certain sectors to purchase measurable and durable CDR credits like DAC CDRs. As we reduce the cost of DAC, we expect companies will increase the share of DAC CDRs in their portfolio of solutions. We have included 3 market demand scenarios in our earnings presentation to illustrate how the DAC CDR market may grow rapidly through the end of this decade as the cost to capture is reduced.

Carbon capture is an overstated goal by Occidental to increase profitability. Having purchased Canadian startup Carbon Engineering Ltd. for $1.1 billion, both Occidental and Berkshire must have supreme confidence in their capabilities to have these statements so prescient throughout their presentations and earnings calls.
Risks

Oil and gas are always under the pressure of the commodity that it sells. The company has stated that continued dividend growth is sustainable at $40 WTI. With WTI in the mid-70s, there is quite a bit of room to spare. We can assume that $40 WTI is a price point that the entire sector would take a hit and possibly need to accumulate more debt. With some leading indicators of global economic weakness on the horizon, $40 or lower should not be ruled out as a possibility.
Summary

Looking at the company from a CAPEX to non-cash expense ratio, Occidental looks like one of the cheapest of the bunch. I believe this is a Buffett preference when it comes to the acquisition of a company in large quantities. How stable are their cash flows and do non-cash expenses consistently out-strip capital expenditures? While a lack of a strong dividend has assuredly kept this one down when compared to the peer group, the cash flow is there to hike the dividend once the balance sheet cuffs are removed.

This looks like a similar turnaround story similar to Kraft Heinz (KHC), and Berkshire is heavily entrenched to add support should the share price come under further pressure in my view. This appears to be the cheapest fully integrated oil major right now with up, mid, and down stream aspects as well as a comprehensive carbon capture plan. Some of the Berkshire accumulation is not Berkshire bullishness, but rather equity instead of dividends paid on the preferreds. Regardless, I believe we can assume that Buffett likes the stock. Buy.
Recommended For You

https://seekingalpha.com/article/4663857-occidental-petroleu…

[mp2019]

Warren Buffett Raises Stake In Occidental Petroleum To 34%

Famed investor Warren Buffett has continued to buy shares in oil producer Occidental Petroleum (OXY) as the price has fallen and now owns 34% of the company.

Through his holding company, Berkshire Hathaway (BRK.A / BRK.B), Buffett has added to his large holding in the energy company in recent weeks, taking his stake to 34% from 28% just before Christmas.

Occidental Petroleum’s stock is currently at $56.80 U.S. per share and near a 52-week low. Buffett has been an aggressive buyer of the shares anytime the price falls to $60 U.S. or lower.

https://www.baystreet.ca/commodities/6911/Warren-Buffett-Rai…

[mp2019]

Another familiar name Warren Buffett and his team have been piling into is energy stock Occidental Petroleum (OXY -2.68%). Since the start of 2022, Berkshire Hathaway has added more than 228 million common shares of Occidental. This is on top of the $10 billion in preferred stock in Occidental (yielding 8%) Buffett's company received in 2019.

Having close to $13 billion invested in Occidental common stock is a pretty clear indication that Buffett and his closest investing confidants believe the spot price of oil will remain elevated or head even higher. Russia's ongoing war with Ukraine, along with multiple years of reduced capital investment by energy majors because of the COVID-19 pandemic, has led to tight oil supply worldwide. Anytime the supply of a major commodity is constrained, there's a good likelihood the price of said commodity will increase.

What's noteworthy about Occidental Petroleum compared to other integrated oil and gas operators is that it generates most of its revenue from its drilling operations. This is to say that its operating performance is considerably more sensitive to changes in the spot price of crude oil than other integrated energy companies. If the spot price of crude oil remains high, Occidental will disproportionately benefit from it.

https://www.fool.com/investing/2023/12/15/meet-1-stock-warre…

[Tbgraf]

Es ist wie es ist.
Habe heute eine erste Posi aufgebaut. Parallel habe ich mich von allen erneuerbaren Rohstoffen getrennt - selbstredend alle Rot im Portfolio.
So sollte es eigentlich nicht sein, ist es aber. Da ich nicht die Außenministerin bin und somit für die ganze Welt verantwortlich sein will, bleibt mir nichts weiter übrig.
Mal sehen, wohin Oxy läuft. Allen Investierten ein frohes Weihnachtsfest! 😎😎😎

[mp2019]

Starinvestor Warren Buffett hat mehr als eine halbe Milliarde US-Dollar in die Hand genommen, um sich weitere Anteile am Ölkonzern Occidental ins Depot zu holen. Das steckt hinter dem Deal

Erneut aufgestockt - mit der Option auf mehr

Ob es bei dieser Platzierung zum Ende des vierten Quartals bleiben wird, ist abzuwarten, denn Berkshire Hathaway hat in der vergangenen Woche erneut ein großes Aktienpaket von Occidental erworben. Wie aus einer Mitteilung an die US-Börsenaufsicht SEC hervor geht, erwarb das Buffett-Finanzvehikel rund 10,5 Millionen Occidental-Aktien im Wert von 588,7 Millionen US-Dollar. Damit erhöht sich die Beteiligung von Berkshire an dem US-amerikanischen Ölkonzern auf 27 Prozent, zudem besitzt das Unternehmen Vorzugsaktien und Optionsscheine, die Berkshire zum Erwerb weiterer 83,8 Millionen Occidental-Aktien für 4,7 Milliarden US-Dollar bzw. 56,62 US-Dollar pro Stück berechtigen. Sollte Buffett alle Optionen ausüben, würde die Finanzbeteiligung auf 33 Prozent steigen.


https://www.finanzen.net/nachricht/aktien/anteile-aufgestock…