Warren Buffett: a major Occidental Petroleum shareholder. Jamie McCarthy Occidental Petroleum (NYSE:OXY) recently declined to a multi-year low of $50.66 after oil prices dipped to $61. The decline was not the first big one in recent years– there was a similar selloff near the end of 2023–but this selloff took OXY to fresh new lows not seen since early March 2022, before the Russian invasion of Ukraine that kicked off that year's oil bull market. On Tuesday, when I saw that oil prices had fallen to unexpecte ...

Oil Market Overview - WTI crude oil prices hit year-to-date lows due to supply/demand concerns, with China's economic weakness and near-record domestic production contributing to the bearish trend [1] - The Energy sector is the worst-performing area of the US stock market in 2024 [1] Occidental Petroleum (OXY) Performance - OXY shares have suffered, with a market cap of $47 billion and a low-teens P/E ratio, despite high cash flow per share and expected earnings improvements [1] - Q2 2024 non-GAAP EPS of $1.03 beat consensus by $0.26, and revenue of $6.88 billion exceeded expectations by $232 million, leading to a 4.3% share price increase [3] - OXY has seen 14 Wall Street EPS upgrades since Q2 results, compared to 8 downgrades [3] - The company raised production and capital spending guidance, following a $12 billion acquisition of CrownRock, which expanded its Midland Basin footprint [3] Valuation and Financial Metrics - OXY's forward P/E is 13.25, 21.17% higher than the sector median, but its forward PEG ratio of 0.76 is 46.11% below the sector median, indicating modest growth expectations [5] - The stock trades at a significant discount to its long-term average on a price-to-sales basis [4] - OXY's free cash flow yield is 9%, and its dividend yield is above the S&P 500 average, though lower than peers [3] Earnings and Growth Outlook - Analysts expect OXY's operating EPS to rise 3% in 2024, accelerating to $4.79 in 2025, with profit growth potentially slowing to just under $5 by 2026 [3] - Revenue growth is expected to be less optimistic in the near term [3] Technical Analysis - OXY shares are close to 20% undervalued, with a bearish technical situation and key support broken at $55, now acting as resistance [9] - A bearish measured move downside price target near $42 is possible, with potential support in the $36-$37 range [9] - The RSI momentum gauge indicates poor momentum, and the 200-day moving average suggests a bearish primary trend [9] Corporate Events - OXY's unconfirmed Q3 2024 earnings date is November 11 AMC, with a $0.22 quarterly dividend payable on October 15 [8] Competitive Position - OXY has a prominent position in the Permian Basin and is advancing carbon capture projects, setting it apart from competitors [3] - The company plans to pay down debt from the CrownRock acquisition within a year, despite a modest increase in debt burden [3] Conclusion - Despite bearish technicals, OXY is viewed as a fundamental value case with potential EPS upside, making it a buy-rated stock [10]

Even after one of Wall Street's best investors, Warren Buffett bought up to 29% of Occidental Petroleum Co. NYSE: OXY, the stock has been downward and now trades at a new 52-week low. Has the Oracle of Omaha lost his touch? Bears could criticize his timing, but the reality is that the short term doesn't matter for investors like Buffett, but rather the coming few quarters. Occidental Petroleum Today OXY Occidental Petroleum $53.74 -0.89 (-1.63%) 52-Week Range $53.60 ▼ $71.18 Dividend Yield 1.64% P/E Ratio 1 ...

Occidental Petroleum (OXY) recently announced that it has reduced its principal debt by $3 billion in the third quarter of 2024, utilizing robust organic cash flow from operations and proceeds from divestitures. Occidental is on course to achieve its $4.5 billion debt reduction target, set to be completed within 12 months of closing CrownRock L.P. The company completed the acquisition of CrownRock on Aug 1, 2024. Over the past three months, Occidental has experienced a 7.3% fall, underperforming the industr ...

The oil company is working to whittle down its debt. Occidental Petroleum (OXY -2.13%) recently closed its $12 billion acquisition of CrownRock. The deal will significantly enhance its position in the Permian Basin and free cash flow. However, it also loaded the company with debt. The company borrowed $9.1 billion to close the deal and assumed $1.2 billion of CrownRock's existing debt. The oil company plans to significantly reduce its debt in the coming years to ease the potential pressure on its balance sh ...

Investors eagerly await Berkshire Hathaway's NYSE: BRK.B 13F filing every quarter, unveiling Warren Buffett's latest stock moves. This event is closely watched as it offers a rare glimpse into the strategies of one of the greatest investors of all time. Among the most recent highlights from the second quarter of 2024 is Berkshire's increased stake in Occidental Petroleum NYSE: OXY, which has been a significant part of Buffett's portfolio for the past few years. Get Occidental Petroleum alerts: Buffett's His ...

I can see why this stock is a Buffett favorite. Warren Buffett has been a net seller of stocks for seven consecutive quarters. He has also built Berkshire Hathaway's cash, cash equivalents, and short-term investments to nearly $277 billion -- the largest cash stockpile in the company's history. Has the legendary investor thrown in the towel on the stock market? Not completely. Buffett just bought shares in seven stocks. I think one stands out as the best of the bunch. Adding more Buffett added to Berkshire' ...

Achieved $3 billion in principal debt reduction in the third quarter of 2024 Public offering of a portion of Occidental's common units of Western Midstream Partners, LP, raised $700 million, bringing total 2024 year-to-date closed or announced divestments to approximately $1.7 billion Following close of the previously announced Delaware Basin Barilla Draw divestiture, which is expected late in the third quarter, Occidental expects a total year-to-date reduction of over $3.8 billion in principal debt HOUSTON ...

Occidental Petroleum is cashing in on its MLP. Occidental Petroleum (OXY -2.58%) recently closed its needle-moving acquisition of CrownRock. It paid $12 billion for the fellow oil company, which will significantly enhance its position in the prolific Permian Basin. The acquisition should also boost its annual free cash flow by about $1 billion. However, the oil stock took on a boatload of debt to close the deal (it issued $9.1 billion of new debt while also assuming $1.2 billion of CrownRock's existing debt ...

HOUSTON, Aug. 12, 2024 (GLOBE NEWSWIRE) -- Occidental (NYSE: OXY) today announced the launch of an underwritten secondary public offering of 29,560,619 shares of its common stock by CrownRock Holdings, L.P. (the "Selling Stockholder"). Occidental is not offering any shares of common stock in the offering. The Selling Stockholder will receive all of the proceeds from the proposed offering. The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering ...