Occidental Petroleum NYSE: OXY przemysł naftowy i gazowy

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Warren Buffett's Berkshire Hathaway (NYSE:BRKa) continues to add to its Occidental Petroleum (NYSE:OXY) position on recent sector weakness related to fears about a recession.

Late Thursday, Berkshire disclosed buying another 4.3 million shares worth about $250 million based on current prices.

The latest purchase brings the firm's stake to 179,741,891 shares. Berkshire also owns warrants that cover another 83,858,848 shares, with an exercise price of $59.62, and 100,000 preferred shares.

Wall Street analysts have recently speculated that Buffett and Berkshire could buy the remaining two-thirds of Occidental that they don't own once the company becomes investment grade.

Shares of Occidental are down 22% from their late May 2022 peak.

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ATechniczna

Warren Buffett Stocks OXY stock shot up 9.9% to 71.29 on Friday, running past a 66.26 cup-with-handle buy point in triple normal volume, according to MarketSmith analysis. Shares are now slightly extended from the 5% buy zone, so investors may want to wait for a pullback.

Occidental Petroleum has outperformed many other oil stocks as Warren Buffett's Berkshire has amassed an OXY stock stake of just over 20% in recent months.

On Friday, Berkshire disclosed that the Federal Energy Regulatory Commission approved its request to buy up to 50% of Occidental Petroleum, triggering the breakout. Berkshire filed for the right to do so on July 11, the company said Friday.

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Big Bet on Occidental Could Be Another Buffett Mistake on Oil, Analyst Warns

It was disclosed on Friday that Warren Buffett’s Berkshire Hathaway (NYSE:BRKa) has received permission from the Federal Energy Regulatory Commission (FERC) to buy up to 50% of shares in Occidental Petroleum (NYSE:OXY).

The WSJ reports today that Berkshire hasn’t informed OXY that it plans to acquire a controlling stake in the company. Still, Buffett is likely to have a major influence on OXY given that BRK is OXY’s largest shareholder as it owns a c.20.2% stake.

Moreover, Buffett’s company has warrants to purchase another 83.9 million common shares and 100,000 shares of preferred stock.

The WSJ report adds that some senior executives at Occidental believe Buffett may be interested in acquiring a controlling stake if oil prices fall, which should also bring down the OXY share price.

Occidental shares rallied almost 10% on Friday to push its market cap to over $66 billion. Shares closed at $71.29, already bringing hefty profits to Buffett as he was previously acquiring shares at a price in the range of $50 to $60.

A BofA analyst hiked the price target on OXY shares to $80 from $77 but warned that Warren Buffett may be bidding against himself by buying more OXY shares. If Buffett is simply bullish on oil prices, the analyst argues he has better options elsewhere given the run-up in OXY shares.

“Our standing position is that value isn’t enough to realize upside we look for catalysts to force recognition of value. BRK’s role as the ‘rate of change’ agent may have been overlooked but their disclosed interest may continue to squeeze short positions, recent outperformance may mean the risk from here is that BRK ends up bidding against itself,” the analyst wrote in a client note.

Finally, the analyst reminds clients of Buffett’s failed bet on ConocoPhillips (NYSE:COP) back in 2007, which was also based on the belief that oil prices would only increase over the long term.

https://www.investing.com/news/stock-ma ... SI-2877394

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Occidental dips after missing on fourth quarter profit expectations

Investing.com -- Occidental Petroleum Corporation (NYSE:OXY) shares dipped in after-hours trading after it missed expectations on profit.

The oil producer reported fourth-quarter adjusted earnings per share of $1.61, compared with expectations for adjusted profit of $1.81 a share. Revenue of $8.3 billion compared to the expected $8.37B expected.

Shares were down 1.7% in late trading.

Occidental said it would start a new $3B share repurchase program after completing a $3B program. It also announced a 38% increase to its common dividend.

CEO Vicki Hollub said: "Our operational success drove the financial achievements that enabled us to complete our $3.0B share repurchase program and deliver substantial balance sheet improvements. Our teams are well positioned to maintain this operational success, as we continue to focus on delivering value for our shareholders in 2023.”

The company reported $2.5B in oil and gas pre-tax income on continuing operations for the fourth quarter, compared with pre-tax income of $3.3B for the third quarter. The fourth quarter results included $46 million of gains on sales of assets.

“Excluding items affecting comparability, fourth quarter oil and gas income declined due to lower worldwide crude oil Crude Oil WTI or and natural gas liquids (NGL) and domestic natural gas prices and higher exploration expenses, partially offset by higher crude oil sales volumes,” Occidental said.

https://www.investing.com/news/stock-ma ... ns-3016234

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Investing.com -- Shares in Occidental Petroleum Corporation (NYSE:OXY) gained nearly 3% in premarket U.S. trading on Wednesday after billionaire Warren Buffett's Berkshire Hathaway (NYSE:BRKa) increased its already hefty stake in the energy company.

The Omaha, Nebraska-based conglomerate purchased 5.8 million shares in Occidental from March 3 to March 7, according to a regulatory filing, all within the range of $59 to $61 per share.

Berkshire's indirect ownership of the Houston-based group now totals more than 200 million shares, worth $12.2 billion based off of the stock's closing price of $60.85 on Tuesday.

Last August, regulators gave Berkshire the approval to snap up a 50% stake in Occidental, spurring speculation that it may eventually buy all of the business. The stake currently stands at more than 22%.

Occidental is among Berkshire's ten largest holdings, a list that also includes oil major Chevron (NYSE:CVX) as well as blue-chip corporate names like Bank of America (NYSE:BAC) and Coca-Cola (NYSE:KO).

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Warren Buffett's Berkshire Hathaway (BRKB) bought over 7.88 million shares of Occidental Petroleum (OXY), worth close to $467 million. OXY rose 1.3% on the news.

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Berkshire Hathaway stake in Occidental Petroleum rises to 23.6%

(Reuters) - Warren Buffett's Berkshire Hathaway (NYSE:BRKa) Inc boosted its ownership stake in Occidental Petroleum Corp (NYSE:OXY) to about 23.6% after buying nearly 3.7 million additional shares.

Berkshire disclosed the purchases, which cost about $216 million and occurred on March 23 and 27, in a U.S. Securities and Exchange Commission filing on Monday night.

Buffett's company began buying large quantities of Occidental stock just over one year ago, around when Russia invaded Ukraine, and has spent more than $1 billion on the stock this month.

It now owns about 211.7 million Occidental shares worth $12.6 billion based on the oil company's closing price of $59.65 on Monday.

In August, Berkshire won U.S. Federal Energy Regulatory Commission permission to buy up to 50% of Occidental's common stock.

It also owns $10 billion of Occidental preferred stock with an 8% dividend, plus warrants to buy another $5 billion of common shares at $59.62 each.

Berkshire is Occidental's largest shareholder, and some analysts and investors have speculated that it might eventually buy the Houston-based company.

Buffett, 92, has longed to make another large acquisition for his Omaha, Nebraska-based conglomerate, whose dozens of businesses include Geico car insurance and the BNSF railroad.

Berkshire built a 22.6% stake in BNSF before paying $26.5 billion for the remainder in 2010.

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Occidental Petroleum (NYSE:OXY) dipped slightly after Warren Buffett said his investment powerhouse, Berkshire Hathaway, will not make a bid to take full control of the energy firm.

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Warren Buffett's Berkshire Hathaway (NYSE:BRKa) continues to add to its Occidental Petroleum (NYSE:OXY) position despite recent comments from Mr. Buffett that they won't buy the entire company.

A Form 4 filing with the SEC overnight showed that Berkshire bought another 2.165 million shares between 05/11/23-05/12/23 at prices from $56.80-$58.46 per share.

Berkshire Hathaway owns 213,872,911 common shares following the latest purchases, as well as 93,532 Series A Preferred shares. In addition, Berkshire owns warrants to purchase another 83,858,849 common shares.

At the firm's annual meeting earlier in the month, Buffett said while they love the shares they have, they are not looking at making an offer to control the entire company.

"We will not be making any offer for control of Occidental," Buffett said at that time. "We love the shares we have," he added while saying they may buy more shares in the future.

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This Undervalued Stock Yields 6% and Offers Upside
by Jody Chudley, Wealthy Retirement • July 1, 2023
Warren Buffett just can’t stop buying shares of Occidental Petroleum (NYSE: OXY).

He now holds almost 25% of all Occidental shares through his conglomerate Berkshire Hathaway (NYSE: BRK-A).

But if you are interested in owning an oil and gas producer, I’m not sure Occidental is the one to go for.

Devon Energy (NYSE: DVN) is cheaper, is growing faster and has an intriguing dividend.

With more than 650,000 barrels per day of production, Devon is one of the largest independent producers focused exclusively on the United States.

Roughly two-thirds of that production comes from the highly prolific Delaware Basin, located in the massive Permian Basin.

Unlike most of the larger oil and gas producers – which are now planning on keeping production flat – Devon is going to grow in 2023.

Management’s guidance is for year-over-year production growth of 9% per share.

This growth is impressive because Devon is going to accomplish it while still pumping out significant free cash flow. That’s unusual in this business.

As investors, we want to see strong free cash flow. This is cash flow that can be distributed to shareholders as dividends or through share repurchases.

Usually, to grow at a nearly double-digit rate, producers must reinvest all their cash flow. That leaves little to no free cash flow for shareholders.

With nearly double-digit growth and free cash flow, Devon is letting shareholders have their cake and eat it too.

In the chart below, you’ll see that management has quantified how much free cash flow the company can generate at various oil prices.
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https://dailytradealert.com/2023/07/01/ ... rs-upside/

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Occidental Petroleum misses on quarterly profit, raises full-year output

(Reuters) -Occidental Petroleum on Wednesday raised its full-year production forecast by 1%, but missed second-quarter profit expectations due to a slide in oil and gas prices and took a writedown to exit some operations.

Weak oil and gas prices have hit earnings of U.S. oil producers after a bumper year in 2022 when Russia's invasion of Ukraine buoyed energy prices.

Occidental (NYSE:OXY)'s average realized price for oil fell 32% to $73.59 per barrel for the April-June quarter, while gas prices fell 78% to $1.36 per thousand cubic feet.

Production in the quarter rose 6% to 1.2 million barrels of oil equivalent per day (boepd), above the company's estimate in May.

The better-than-expected output in the quarter also helped the company raise its full-year production guidance by 1% to between 1.19 million boepd and 1.24 million boepd, from a midpoint of 1.195 million previously.

Occidental also said it will not pursue future exploration in Wyoming's Powder River Basin, and took a $164 million after-tax impairment charge related to the properties.

Occidental had interest in over 300,000 net acres in the Powder River Basin at the end of 2022 and had planned to run one drilling rig in 2023, according to its annual report.

Adjusted profit of 68 cents per share for the second quarter was below analysts' average estimate of a 72 cents, according to Refinitiv data.

Meanwhile, rival U.S. oil producers Marathon Oil (NYSE:MRO) and APA Corp reported quarterly earnings that beat analysts' estimates on higher than projected output.

Marathon guided full-year production above the prior 190,000 barrels of oil per day midpoint guidance while maintaining a capital spending range of $1.9 billion to $2 billion.

Apache said output was tracking in line with its full-year production guidance of 404,000 to 408,000 boepd.

However, the company cut its full-year exploration and production spending outlook to $1.9 billion from a previous range of $1.9 billion to $2 billion, citing no additional drilling in Suriname in 2023 and deferred drilling activity in the UK North Sea.

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(Reuters) -U.S. oil and gas producer Occidental Petroleum (NYSE:OXY) on Tuesday agreed to pay $1.1 billion for technology supplier Carbon Engineering Ltd to help it develop a string of carbon-capture sites it hopes will profit from tackling climate change.

The U.S. oil producer aims to build about 100 plants using direct air capture (DAC) technology that strips carbon dioxide (CO2) from the atmosphere to bury underground or for use in making products such as concrete and aviation fuel.

The DAC technology is in early stages of commercialization and will require multibillion-dollar investments to prove it can work economically and generate profits.

"This is not a huge deal for Occidental, but we think it adds to near-term leverage and heightens concerns over cash burn at (Occidental's) Low Carbon Ventures division," Roth MKM brokerage firm said in a note.

The payments will be spread over three approximately equivalent annual payments, with the first due at closing, which is expected for before the end of 2023, the companies said.

Carbon dioxide is a greenhouse gas. President Joe Biden's administration views DAC technology as a tool to help meet a goal of neutralizing emissions by 2050, if it can be commercialized and applied at industrial scale.

While carbon capture is applied to emissions produced at industrial facilities, DAC actively removes CO2 from the air.

Last Friday, the U.S. Department of Energy announced sites in Texas and Louisiana will get over $1 billion in federal grants. Some of that money will fund Occidental's 30 proposed DAC plants in Kleberg Country, Texas.

The two sites will be the first funded by a $3.5 billion authorization for regional DAC hubs funded by Congress from the bipartisan infrastructure bill.

Occidental said it has been working with Carbon Engineering on DAC deployment since 2019.

"The acquisition enables Occidental to catalyze broader development partnerships for DAC deployment in the most capital efficient and valuable way," said Occidental CEO Vicki Hollub.