Occidental Petroleum (Occidental) is an American oil and gas company that operates in the United States and the Middle East. The company's chemical division is present in the United States, as well as in Canada and Chile. During the last 3 months. Oxy lost its value by more than 10%, which Berkshire Hathaway, led by one of the world's most famous investors, W. Buffett, took advantage of, increasing its stake. Oxy shares have a fair value of $72.1 with an upside potential of 16.1% and a dividend yield of 1.34%.
Investment theses Stable financial position.
At the end of the 1st quarter of 2024, Occidental Petroleum recorded a decline in financial indicators against the backdrop of unfavorable conditions in the energy market. Average production decreased by 4% to 1.172 million barrels/day. Adjusted earnings per share (EPS) fell 42% year over year to $0.63. At the same time, the indicator exceeded the expectations of the market. In addition, the company managed to maintain a positive net cash flow ($720 million), which indicates good financial discipline.
🔼Berkshire Hathaway increased its position in the company's shares.
W. Buffett's company began buying Oxy shares in 2022. In June of this year, Berkshire made another purchase, increasing its stake to 29%. The purchase of shares by one of the largest and most prominent investors indicates good prospects for the company and its shares.
🔼Risks.
Volatile energy market conditions can adversely affect a company's financial results and hit the value of its securities.
Awareness!
The above information is not a basis for investment, nor a guarantee or promise of income. Before investing, you should make your own assessment of the potential risks and benefits and your willingness and ability to accept such risks.