Occidental Petroleum Issues Statement Regarding Icahn Filing - Die letzten 30 Beiträge | Diskussion im Forum
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ISIN: US6745991058 · WKN: 851921 · Symbol: OXY
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Letzter Kurs 04.05.24 NYSE
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| Datum | Beiträge | Bewertungen |
|---|---|---|
| 02.05.24 |
| Datum | Beiträge | Bewertungen |
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| 02.05.24 |
Werte aus der Branche Öl/Gas
| Wertpapier | Kurs | Perf. % |
|---|---|---|
| 1.300,00 | +23,81 | |
| 0,8529 | +22,54 | |
| 19,650 | +11,77 | |
| 1,2800 | +10,34 | |
| 86,77 | +10,04 |
| Wertpapier | Kurs | Perf. % |
|---|---|---|
| 3,060 | -12,32 | |
| 1,590 | -15,43 | |
| 1,050 | -17,32 | |
| 0,510 | -20,31 | |
| 0,7400 | -22,11 |
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3 Reasons to Buy Occidental Petroleum (and Warren Buffett Isn't 1 of Them
https://www.fool.com/investing/2024/04/30/3-reasons-to-buy-o…
https://www.fool.com/investing/2024/04/30/3-reasons-to-buy-o…
Entschuldung
Occidental Petroleum-CEO: Schuldenbekämpfung hat höchste Priorität
02.04.24 10:12 Uhr
Der Energieriese Occidental Petroleum widmet sich zukünftig dem Abbau seiner Schulden, verkündet CEO Vicki Hollub auf der CERAWeek Konferenz des S&P Global in Houston. "Wir hatten in den letzten Jahren ein sehr solides Rückkaufprogramm, da unsere Aktien unserer Meinung nach derzeit sehr unterbewertet sind", erklärt sie. Ein Blick in das vergangene Jahr erklärt die Ursache für die Schulden: Im Dezember übernahm das Unternehmen den in Texas ansässigen Schieferölproduzenten CrownRock im Austausch gegen eine zwölf Milliarden US-Dollar schwere Bar- und Aktientransaktion. Der Kauf diente dem Erwerb umfangreicher Schieferölreserven im Permian-Becken in Westtexas und im Südosten New Mexicos. Da CrownRock 94.000 Netto-Acres des Perm-Becken besitzt, wird die Produktion von Occidental Petroleum um etwa 170.000 Barrel Öläquivalent pro Tag gesteigert. Die Akquisition glich keinen bisherigen Deals des Unternehmens. Der Grund: Die Übernahme des privatgeführten CrownRock wurde durch zusätzliche Schulden ermöglicht - mehr als 80 Prozent des Kaufpreises sind damit durch Schulden finanziert worden. Das Gesamtvolumen des Unternehmens erhöhte sich damit auf das 1,7-Fache des Vorsteuergewinns. Plan sei es, die Übernahme - teilweise - durch den Verkauf einiger Vermögenswerte zu finanzieren, so Hollub. Dabei soll die Verschuldung auf 15 Milliarden US-Dollar begrenzt werden. Dies habe laut ihr höchste Priorität.
Hollub hält an CrownRock-Übernahme fest
Vicki Hollub ist fest von der Übernahme CrownRocks überzeugt: "Wir glauben, dass die beiden wichtigsten Möglichkeiten, den Aktionären Mehrwert zu bieten, in einer steigenden Dividende, die uns die CrownRock-Übernahme bringt, und im Rückkauf von Aktien bestehen", erläutert sie. Eine organische Investition in die Öl- und Gasentwicklung von OXY, wird laut Hollub eine "wirklich gute Rendite auf das eingesetzte Kapital" erzielen, prognostiziert sie in ihrem Vortrag auf der CERAWeek Konferenz.
https://www.finanzen.net/nachricht/aktien/entschuldung-occid…
Occidental Petroleum-CEO: Schuldenbekämpfung hat höchste Priorität
02.04.24 10:12 Uhr
Der Energieriese Occidental Petroleum widmet sich zukünftig dem Abbau seiner Schulden, verkündet CEO Vicki Hollub auf der CERAWeek Konferenz des S&P Global in Houston. "Wir hatten in den letzten Jahren ein sehr solides Rückkaufprogramm, da unsere Aktien unserer Meinung nach derzeit sehr unterbewertet sind", erklärt sie. Ein Blick in das vergangene Jahr erklärt die Ursache für die Schulden: Im Dezember übernahm das Unternehmen den in Texas ansässigen Schieferölproduzenten CrownRock im Austausch gegen eine zwölf Milliarden US-Dollar schwere Bar- und Aktientransaktion. Der Kauf diente dem Erwerb umfangreicher Schieferölreserven im Permian-Becken in Westtexas und im Südosten New Mexicos. Da CrownRock 94.000 Netto-Acres des Perm-Becken besitzt, wird die Produktion von Occidental Petroleum um etwa 170.000 Barrel Öläquivalent pro Tag gesteigert. Die Akquisition glich keinen bisherigen Deals des Unternehmens. Der Grund: Die Übernahme des privatgeführten CrownRock wurde durch zusätzliche Schulden ermöglicht - mehr als 80 Prozent des Kaufpreises sind damit durch Schulden finanziert worden. Das Gesamtvolumen des Unternehmens erhöhte sich damit auf das 1,7-Fache des Vorsteuergewinns. Plan sei es, die Übernahme - teilweise - durch den Verkauf einiger Vermögenswerte zu finanzieren, so Hollub. Dabei soll die Verschuldung auf 15 Milliarden US-Dollar begrenzt werden. Dies habe laut ihr höchste Priorität.
Hollub hält an CrownRock-Übernahme fest
Vicki Hollub ist fest von der Übernahme CrownRocks überzeugt: "Wir glauben, dass die beiden wichtigsten Möglichkeiten, den Aktionären Mehrwert zu bieten, in einer steigenden Dividende, die uns die CrownRock-Übernahme bringt, und im Rückkauf von Aktien bestehen", erläutert sie. Eine organische Investition in die Öl- und Gasentwicklung von OXY, wird laut Hollub eine "wirklich gute Rendite auf das eingesetzte Kapital" erzielen, prognostiziert sie in ihrem Vortrag auf der CERAWeek Konferenz.
https://www.finanzen.net/nachricht/aktien/entschuldung-occid…
U.S. Oil Companies Produced More Oil Than any Country in History Last Year. Here Are 3 Top Oil Stocks to Buy Now
Occidental Petroleum produced an average of 1.2 million barrels of oil equivalent per day (BOE/d) during the fourth quarter of last year. That was its highest quarterly total in over three years. The company benefited from strong production growth in the Rockies and Permian Basin, which offset weaker output in the Gulf of Mexico due to a third-party pipeline outage.
The oil company's strong production rate enabled it to generate lots of cash. It produced $5.5 billion of free cash flow for the year. That gave it the money to invest in growing its production, return cash to shareholders through a growing dividend (22% increase) and share repurchases (including some of the preferred shares owned by Warren Buffett's Berkshire Hathaway), and strengthen its balance sheet.
Occidental is in the process of bolstering its already strong position in the Permian Basin after it agreed to acquire CrownRock in a $12 billion deal. That purchase will boost its production rate and free cash flow. The company anticipates the deal will expand its free cash flow by $1 billion over the first year, assuming oil averages $70 a barrel (it's currently over $80). That will give it the cash to quickly repay debt so that it can return more money to shareholders. The company's strong position has made it a stock that Warren Buffett considers a potential "forever" holding.
https://www.fool.com/investing/2024/03/16/us-oil-companies-p…
Occidental Petroleum produced an average of 1.2 million barrels of oil equivalent per day (BOE/d) during the fourth quarter of last year. That was its highest quarterly total in over three years. The company benefited from strong production growth in the Rockies and Permian Basin, which offset weaker output in the Gulf of Mexico due to a third-party pipeline outage.
The oil company's strong production rate enabled it to generate lots of cash. It produced $5.5 billion of free cash flow for the year. That gave it the money to invest in growing its production, return cash to shareholders through a growing dividend (22% increase) and share repurchases (including some of the preferred shares owned by Warren Buffett's Berkshire Hathaway), and strengthen its balance sheet.
Occidental is in the process of bolstering its already strong position in the Permian Basin after it agreed to acquire CrownRock in a $12 billion deal. That purchase will boost its production rate and free cash flow. The company anticipates the deal will expand its free cash flow by $1 billion over the first year, assuming oil averages $70 a barrel (it's currently over $80). That will give it the cash to quickly repay debt so that it can return more money to shareholders. The company's strong position has made it a stock that Warren Buffett considers a potential "forever" holding.
https://www.fool.com/investing/2024/03/16/us-oil-companies-p…
NEW YORK/LONDON (dpa-AFX) - Die Ölpreise haben am Mittwoch zugelegt. Ein Barrel (159 Liter) der Nordseesorte Brent zur Lieferung im Mai kostete zuletzt 83,54 US-Dollar. Das waren 1,62 Dollar mehr als am Vorabend. Der Preis für ein Fass der amerikanischen Sorte West Texas Intermediate (WTI) zur April-Lieferung stieg um 1,69 Dollar auf 79,25 Dollar.
Für Preisauftrieb sorgten Daten zur Entwicklung der Ölreserven in den USA. Die Bestände an Rohöl sind laut Energieministerium im Vergleich zu Vorwoche unerwartet gefallen. Auch die Bestände an Benzin und Destillaten sanken. Zudem ging auch die tägliche Ölproduktion etwas zurück.
Die Richtung stimmt. 😎😎😎
https://www.onvista.de/news/2024/03-13-oelpreise-legen-zu-us…
Für Preisauftrieb sorgten Daten zur Entwicklung der Ölreserven in den USA. Die Bestände an Rohöl sind laut Energieministerium im Vergleich zu Vorwoche unerwartet gefallen. Auch die Bestände an Benzin und Destillaten sanken. Zudem ging auch die tägliche Ölproduktion etwas zurück.
Die Richtung stimmt. 😎😎😎
https://www.onvista.de/news/2024/03-13-oelpreise-legen-zu-us…
Trading Spotlight
Antwort auf Beitrag Nr.: 75.425.825 von speedy78 am 09.03.24 22:08:39
https://seekingalpha.com/article/4675656-occidental-petroleu…
Zitat von speedy78: Ich beobachte Occidental Petroleum nun seit dem Einstieg von Buffet.
Damals wurden auch noch die Förderquoten gesenkt, also Angebot verknappt - aber die Aktie ist gefallen.
Ich beginne an OP zu zweifeln, ob ein Investment darin überhaupt Sinn macht.
Verstehe nicht was der Alte sich davon verspricht und warum die Aktie nicht in die Gänge kommt.
https://seekingalpha.com/article/4675656-occidental-petroleu…
Ich beobachte Occidental Petroleum nun seit dem Einstieg von Buffet.
Damals wurden auch noch die Förderquoten gesenkt, also Angebot verknappt - aber die Aktie ist gefallen.
Ich beginne an OP zu zweifeln, ob ein Investment darin überhaupt Sinn macht.
Verstehe nicht was der Alte sich davon verspricht und warum die Aktie nicht in die Gänge kommt.
Damals wurden auch noch die Förderquoten gesenkt, also Angebot verknappt - aber die Aktie ist gefallen.
Ich beginne an OP zu zweifeln, ob ein Investment darin überhaupt Sinn macht.
Verstehe nicht was der Alte sich davon verspricht und warum die Aktie nicht in die Gänge kommt.
Dividende und Kurse sind bei Chevron deutlich besser. Ohne das Corona-V gab es hier keine Performance seit Jahren.
https://seekingalpha.com/article/4675656-occidental-petroleu…
Occidental Petroleum: Warren Buffett Is Right
Berkshire Hathaway is the largest shareholder in Occidental Petroleum and has no interest in purchasing or managing the company.
Occidental Petroleum had strong 2023 results, with record productivity rates, increased proven reserves, and $5.5 billion in free cash flow.
The company is acquiring CrownRock for $12 billion, which is expected to support lower breakeven and increase cash flow.
Occidental Petroleum is committed to substantial shareholder returns.
The Oracle of Omaha is looking 10 years down the road at a business most investors have never even heard of.
If you own a stake in Occidental Petroleum (OXY -1.11%), then you probably already know Warren Buffett's also a fan. Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) owns nearly 244 million shares of the oil and gas giant... a position that's been steadily added to since 2019 and is now worth a total of $14.5 billion. Buffett even mentioned Occidental's "vast oil and gas holdings" in his recent annual letter to Berkshire shareholders, underscoring the idea that the company is making adequate investments in its future supply of crude and natural gas.
However, there's something else Buffett said about Occidental Petroleum in his recently penned letter that deserves a closer look. He added that Berkshire Hathaway's a fan of the company's "leadership in carbon-capture initiatives [even] though the economic feasibility of this technique has yet to be proven."
The comment begs a couple of questions, the first of which is simply: What the heck is carbon capture?
What's carbon capture?
You likely know that fossil fuels like oil, coal, and to some extent even natural gas aren't exactly environmentally friendly. Namely, using them creates by-products like carbon dioxide (or CO2), which can contribute to global warming.
Just as the name suggests, carbon capture prevents these carbon-based molecules from floating freely in the atmosphere and/or onto the ground.
It's easier said than done. That's why it hasn't really been done to any meaningful commercial degree.
In that technology begets more technology, however, the ability to trap carbon dioxide is not only improving, but approaching the point of being cost-effective. That's important too, since many of the world's top polluters will soon be paying for solutions allowing them to keep their net carbon footprint under control.
And none too soon. The United States' federal government has set a goal of becoming a net-zero emissions country by 2050. That's ambitious to be sure. But it's not out of the realm of possibility if we push the proverbial envelope.
Enter Occidental Petroleum.
Occidental's carbon capture projects
Occidental Petroleum is one of the developers pushing that envelope. It may be pushing it more than any other organization, in fact.
Take its so-called STRATOS project in Ector County, Texas as an example. Although it's not yet up and running, BlackRock has committed $550 million of its own money to the joint venture that is expected to capture up to 500,000 tons of CO2 directly from the atmosphere every year beginning in mid-2025. Amazon and Airbus are just a couple of the companies that have already signed up as eventual paying customers when they're required to reduce their carbon footprint.
That's just the beginning, though. CEO Vicki Hollub feels that this atmospheric carbon capture tech could be licensed out to as many as 1,000 paying customers needing such tools to meet carbon emission requirement mandates in the future.
https://www.fool.com/investing/2024/03/03/warren-buffett-lov…
Occidental Petroleum: Warren Buffett Is Right
Berkshire Hathaway is the largest shareholder in Occidental Petroleum and has no interest in purchasing or managing the company.
Occidental Petroleum had strong 2023 results, with record productivity rates, increased proven reserves, and $5.5 billion in free cash flow.
The company is acquiring CrownRock for $12 billion, which is expected to support lower breakeven and increase cash flow.
Occidental Petroleum is committed to substantial shareholder returns.
The Oracle of Omaha is looking 10 years down the road at a business most investors have never even heard of.
If you own a stake in Occidental Petroleum (OXY -1.11%), then you probably already know Warren Buffett's also a fan. Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) owns nearly 244 million shares of the oil and gas giant... a position that's been steadily added to since 2019 and is now worth a total of $14.5 billion. Buffett even mentioned Occidental's "vast oil and gas holdings" in his recent annual letter to Berkshire shareholders, underscoring the idea that the company is making adequate investments in its future supply of crude and natural gas.
However, there's something else Buffett said about Occidental Petroleum in his recently penned letter that deserves a closer look. He added that Berkshire Hathaway's a fan of the company's "leadership in carbon-capture initiatives [even] though the economic feasibility of this technique has yet to be proven."
The comment begs a couple of questions, the first of which is simply: What the heck is carbon capture?
What's carbon capture?
You likely know that fossil fuels like oil, coal, and to some extent even natural gas aren't exactly environmentally friendly. Namely, using them creates by-products like carbon dioxide (or CO2), which can contribute to global warming.
Just as the name suggests, carbon capture prevents these carbon-based molecules from floating freely in the atmosphere and/or onto the ground.
It's easier said than done. That's why it hasn't really been done to any meaningful commercial degree.
In that technology begets more technology, however, the ability to trap carbon dioxide is not only improving, but approaching the point of being cost-effective. That's important too, since many of the world's top polluters will soon be paying for solutions allowing them to keep their net carbon footprint under control.
And none too soon. The United States' federal government has set a goal of becoming a net-zero emissions country by 2050. That's ambitious to be sure. But it's not out of the realm of possibility if we push the proverbial envelope.
Enter Occidental Petroleum.
Occidental's carbon capture projects
Occidental Petroleum is one of the developers pushing that envelope. It may be pushing it more than any other organization, in fact.
Take its so-called STRATOS project in Ector County, Texas as an example. Although it's not yet up and running, BlackRock has committed $550 million of its own money to the joint venture that is expected to capture up to 500,000 tons of CO2 directly from the atmosphere every year beginning in mid-2025. Amazon and Airbus are just a couple of the companies that have already signed up as eventual paying customers when they're required to reduce their carbon footprint.
That's just the beginning, though. CEO Vicki Hollub feels that this atmospheric carbon capture tech could be licensed out to as many as 1,000 paying customers needing such tools to meet carbon emission requirement mandates in the future.
https://www.fool.com/investing/2024/03/03/warren-buffett-lov…
Warum Buffet Occidental langfristig halten will:
Buffett hob dann die drei Faktoren hervor, die seine Ansicht antreiben, dass Occidental eine unbestimmte Zeit sein könnte: "Wir mögen besonders seine riesigen Öl- und Gasbestände in den Vereinigten Staaten sowie seine Führungsrolle bei CO2-Abscheidungsinitiativen, obwohl die wirtschaftliche Machbarkeit dieser Technik noch nicht bewiesen ist. Beide Aktivitäten liegen sehr im Interesse unseres Landes."
Er stellte fest, dass es noch nicht so lange her sei, dass die USA "beklagenswert von ausländischem Öl abhängig" seien. Dank einer deutlichen Verbesserung der Wirtschaftlichkeit der Schieferbohrungen sind die USA heute jedoch ein wichtiger Ölproduzent. Das bedeutet, dass die OPEC nicht die dominierende Kraft ist, die sie einst auf dem Ölmarkt war, und Occidental spielt eine Schlüsselrolle. Es ist ein großer Ölproduzent geworden, was gut für das Land ist.
Buffett hob auch die Führung von Occidental bei der CO2-Abscheidung hervor. Das Ölunternehmen hat eine lange Geschichte des Einsatzes von Kohlendioxid, um mehr Öl aus alten Feldern zu locken, indem es es in Ölreservoirs injiziert, um den Druck und die Produktion durch einen Prozess zu erhöhen, der als verbesserte Ölgewinnung bekannt ist. Es nutzt jetzt sein Know-how bei der Einspritzung von Kohlendioxid, um von der massiven Kohlenstoffabscheidungs- und Sequestrierungsmöglichkeit zu profitieren. Es entwickelt ein Dekarbonisierungsgeschäft durch den Bau direkter Luftabscheidungsanlagen, die das Treibhausgas aus der Luft ziehen. Es ist die Kommerzialisierung der Technologie, die, wie ihre Ölproduktion, gut für das Land (und die Umwelt) ist.
https://www.fool.com/investing/2024/02/27/like-coca-cola-and…
Buffett hob dann die drei Faktoren hervor, die seine Ansicht antreiben, dass Occidental eine unbestimmte Zeit sein könnte: "Wir mögen besonders seine riesigen Öl- und Gasbestände in den Vereinigten Staaten sowie seine Führungsrolle bei CO2-Abscheidungsinitiativen, obwohl die wirtschaftliche Machbarkeit dieser Technik noch nicht bewiesen ist. Beide Aktivitäten liegen sehr im Interesse unseres Landes."
Er stellte fest, dass es noch nicht so lange her sei, dass die USA "beklagenswert von ausländischem Öl abhängig" seien. Dank einer deutlichen Verbesserung der Wirtschaftlichkeit der Schieferbohrungen sind die USA heute jedoch ein wichtiger Ölproduzent. Das bedeutet, dass die OPEC nicht die dominierende Kraft ist, die sie einst auf dem Ölmarkt war, und Occidental spielt eine Schlüsselrolle. Es ist ein großer Ölproduzent geworden, was gut für das Land ist.
Buffett hob auch die Führung von Occidental bei der CO2-Abscheidung hervor. Das Ölunternehmen hat eine lange Geschichte des Einsatzes von Kohlendioxid, um mehr Öl aus alten Feldern zu locken, indem es es in Ölreservoirs injiziert, um den Druck und die Produktion durch einen Prozess zu erhöhen, der als verbesserte Ölgewinnung bekannt ist. Es nutzt jetzt sein Know-how bei der Einspritzung von Kohlendioxid, um von der massiven Kohlenstoffabscheidungs- und Sequestrierungsmöglichkeit zu profitieren. Es entwickelt ein Dekarbonisierungsgeschäft durch den Bau direkter Luftabscheidungsanlagen, die das Treibhausgas aus der Luft ziehen. Es ist die Kommerzialisierung der Technologie, die, wie ihre Ölproduktion, gut für das Land (und die Umwelt) ist.
https://www.fool.com/investing/2024/02/27/like-coca-cola-and…
BERKSHIRE HATHAWAY INC -2003
At yearend, Berkshire owned 27.8% of Occidental Petroleum’s common shares and also
owned warrants that, for more than five years, give us the option to materially increase our
ownership at a fixed price. Though we very much like our ownership, as well as the option,
Berkshire has no interest in purchasing or managing Occidental. We particularly like its vast oil
and gas holdings in the United States, as well as its leadership in carbon-capture initiatives, though
the economic feasibility of this technique has yet to be proven. Both of these activities are very
much in our country’s interest
And then – Hallelujah! – shale economics became feasible in 2011, and our energy
dependency ended. Now, U.S. production is more than 13 million BOEPD, and OPEC no longer
has the upper hand. Occidental itself has annual U.S. oil production that each year comes close to
matching the entire inventory of the SPR. Our country would be very – very – nervous today if
domestic production had remained at five million BOEPD, and it found itself hugely dependent
on non-U.S. sources. At that level, the SPR would have been emptied within months if foreign oil
became unavailable
For a long time, the pessimism appeared to be correct, with production falling to five
million BOEPD by 2007. Meanwhile, the U.S. government created a Strategic Petroleum Reserve
(“SPR”) in 1975 to alleviate – though not come close to eliminating – this erosion of American
self-sufficiency.
And then – Hallelujah! – shale economics became feasible in 2011, and our energy
dependency ended. Now, U.S. production is more than 13 million BOEPD, and OPEC no longer
has the upper hand. Occidental itself has annual U.S. oil production that each year comes close to
matching the entire inventory of the SPR. Our country would be very – very – nervous today if
domestic production had remained at five million BOEPD, and it found itself hugely dependent
on non-U.S. sources. At that level, the SPR would have been emptied within months if foreign oil
became unavailable.
Under Vicki Hollub’s leadership, Occidental is doing the right things for both its country
and its owners. No one knows what oil prices will do over the next month, year, or decade. But
Vicki does know how to separate oil from rock, and that’s an uncommon talent, valuable to her
https://www.berkshirehathaway.com/2023ar/2023ar.pdf
shareholders and to her country
At yearend, Berkshire owned 27.8% of Occidental Petroleum’s common shares and also
owned warrants that, for more than five years, give us the option to materially increase our
ownership at a fixed price. Though we very much like our ownership, as well as the option,
Berkshire has no interest in purchasing or managing Occidental. We particularly like its vast oil
and gas holdings in the United States, as well as its leadership in carbon-capture initiatives, though
the economic feasibility of this technique has yet to be proven. Both of these activities are very
much in our country’s interest
And then – Hallelujah! – shale economics became feasible in 2011, and our energy
dependency ended. Now, U.S. production is more than 13 million BOEPD, and OPEC no longer
has the upper hand. Occidental itself has annual U.S. oil production that each year comes close to
matching the entire inventory of the SPR. Our country would be very – very – nervous today if
domestic production had remained at five million BOEPD, and it found itself hugely dependent
on non-U.S. sources. At that level, the SPR would have been emptied within months if foreign oil
became unavailable
For a long time, the pessimism appeared to be correct, with production falling to five
million BOEPD by 2007. Meanwhile, the U.S. government created a Strategic Petroleum Reserve
(“SPR”) in 1975 to alleviate – though not come close to eliminating – this erosion of American
self-sufficiency.
And then – Hallelujah! – shale economics became feasible in 2011, and our energy
dependency ended. Now, U.S. production is more than 13 million BOEPD, and OPEC no longer
has the upper hand. Occidental itself has annual U.S. oil production that each year comes close to
matching the entire inventory of the SPR. Our country would be very – very – nervous today if
domestic production had remained at five million BOEPD, and it found itself hugely dependent
on non-U.S. sources. At that level, the SPR would have been emptied within months if foreign oil
became unavailable.
Under Vicki Hollub’s leadership, Occidental is doing the right things for both its country
and its owners. No one knows what oil prices will do over the next month, year, or decade. But
Vicki does know how to separate oil from rock, and that’s an uncommon talent, valuable to her
https://www.berkshirehathaway.com/2023ar/2023ar.pdf
shareholders and to her country
U.S. crude hovers near three month high as Middle East conflict rages on
Published Tue, Feb 20 20248:20 AM ESTUpdated 26 Min Ag
https://www.cnbc.com/2024/02/20/crude-oil-prices-today.html
Published Tue, Feb 20 20248:20 AM ESTUpdated 26 Min Ag
https://www.cnbc.com/2024/02/20/crude-oil-prices-today.html
Occidental Petroleum Eases Permian Basin Focus As Warren Buffett Buys More Shares
https://www.investors.com/news/occidental-petroleum-permian-…
https://www.investors.com/news/occidental-petroleum-permian-…
Darfs ja nicht geben, dass des Vieh jetzt mal vom Fleck kommt.
Beobachte es schon seit dem Einstieg von Buffett, dann waren ziemlich zeitgleich noch Senkungen der Förderquoten (also Verknappung des Angebots) aber der Mist bewegte sich einfach nicht.
Beobachte es schon seit dem Einstieg von Buffett, dann waren ziemlich zeitgleich noch Senkungen der Förderquoten (also Verknappung des Angebots) aber der Mist bewegte sich einfach nicht.
Occidental Petroleum: A Contrarian Play
Backed by Warren Buffett's Berkshire Hathaway, Occidental Petroleum presents itself as a contrarian play. With geopolitical instability affecting oil prices, the potential for growth in this industry is evident.
https://bnnbreaking.com/finance-nav/dividend-stocks-the-path…
Backed by Warren Buffett's Berkshire Hathaway, Occidental Petroleum presents itself as a contrarian play. With geopolitical instability affecting oil prices, the potential for growth in this industry is evident.
https://bnnbreaking.com/finance-nav/dividend-stocks-the-path…
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.
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.
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
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
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-…
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-…
Kolumne
Öl-Firma Warum Warren Buffett in diese Cash-Maschine Millionen investiert
https://www.capital.de/geld-versicherungen/oel-firma--warren…
Öl-Firma Warum Warren Buffett in diese Cash-Maschine Millionen investiert
https://www.capital.de/geld-versicherungen/oel-firma--warren…
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…
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…
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…
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…
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…
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…
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…
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…
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! 😎😎😎
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! 😎😎😎
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…
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…
Nach dem CrownRock-Deal Occidental Petroleum: Buffett setzt weiter auf das Öl-Geschäft
Nach Angaben der Börsenaufsicht SEC erwarb Berkshire Hathaway in dieser Woche nahezu 10,5 Millionen Aktien von Occidental Petroleum für etwa 588,7 Millionen US-Dollar. Durch diese Käufe steigt der Anteil von Berkshire an Occidental auf rund 27 Prozent.
Berkshire besitzt auch Vorzugsaktien und Optionsscheine, die den Erwerb von weiteren 83,8 Millionen Aktien von Occidental zu einem Gesamtpreis von 4,7 Milliarden US-Dollar oder 56,62 US-Dollar pro Aktie ermöglichen. Sollten die Optionsscheine ausgeübt werden, könnte Berkshire insgesamt 33 Prozent an Occidental halten.
https://www.wallstreet-online.de/nachricht/17633263-crownroc…
Nach Angaben der Börsenaufsicht SEC erwarb Berkshire Hathaway in dieser Woche nahezu 10,5 Millionen Aktien von Occidental Petroleum für etwa 588,7 Millionen US-Dollar. Durch diese Käufe steigt der Anteil von Berkshire an Occidental auf rund 27 Prozent.
Berkshire besitzt auch Vorzugsaktien und Optionsscheine, die den Erwerb von weiteren 83,8 Millionen Aktien von Occidental zu einem Gesamtpreis von 4,7 Milliarden US-Dollar oder 56,62 US-Dollar pro Aktie ermöglichen. Sollten die Optionsscheine ausgeübt werden, könnte Berkshire insgesamt 33 Prozent an Occidental halten.
https://www.wallstreet-online.de/nachricht/17633263-crownroc…
Berkshire Hathaway buys Occidental Petroleum shares worth about $588.7 mln
Reuters
December 14, 20233:33 AM GMT+1Updated 9 hours ago
https://www.reuters.com/markets/deals/berkshire-hathaway-buy…
The recent acquisitions have propelled Berkshire Hathaway’s ownership of Occidental to about 27%. Notably, the conglomerate also holds preferred shares and warrants that enabled it to acquire an additional 83.8 million Occidental shares for $4.7 billion, valuing each share at $56.62. These shares and warrants were part of a deal that played a crucial role in financing Occidental’s acquisition of Anadarko Petroleum in 2019. If exercised, the warrants would escalate Berkshire’s total ownership to 33%.
On Wednesday, 13 December 2023, the closing price for Occidental stood at $57.22. This move follows Berkshire’s earlier investment on 25 October 2023, where it acquired a 25.8% stake, amounting to approximately $14.4 billion.
https://www.domain-b.com/management/m-a/berkshire-hathaway-a…
Reuters
December 14, 20233:33 AM GMT+1Updated 9 hours ago
https://www.reuters.com/markets/deals/berkshire-hathaway-buy…
The recent acquisitions have propelled Berkshire Hathaway’s ownership of Occidental to about 27%. Notably, the conglomerate also holds preferred shares and warrants that enabled it to acquire an additional 83.8 million Occidental shares for $4.7 billion, valuing each share at $56.62. These shares and warrants were part of a deal that played a crucial role in financing Occidental’s acquisition of Anadarko Petroleum in 2019. If exercised, the warrants would escalate Berkshire’s total ownership to 33%.
On Wednesday, 13 December 2023, the closing price for Occidental stood at $57.22. This move follows Berkshire’s earlier investment on 25 October 2023, where it acquired a 25.8% stake, amounting to approximately $14.4 billion.
https://www.domain-b.com/management/m-a/berkshire-hathaway-a…
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