Latest news with #OccidentalPetroleum
Globe and Mail
18 hours ago
- Business
- Globe and Mail
OXY's International Operations Are Powering Multi-Dimensional Growth
Occidental Petroleum 's OXY global upstream footprint plays a pivotal role in driving its growth and resilience. International assets, such as Qatar's Dolphin gas project, Oman's Mukhaizna oilfields and the UAE's Al Hosn Gas, contribute significantly to production and cash flow. These diversified operations help cushion the company from volatility in U.S. shale markets and reduce exposure to domestic regulatory and market fluctuations, providing a more stable foundation for consistent shareholder returns. Occidental continues to deepen its presence in the Middle East and North Africa, with strategic stakes in high-potential regions. The company is the largest independent oil producer in Oman. OXY derives nearly one-fifth of the total production and over a quarter of its proved reserves from the broader Middle East. Occidental is also integrating decarbonization into its global operations through the 1PointFive platform, which is pioneering direct air capture technology. The company's recent memoranda of understanding with Algeria's Sonatrach signal ongoing efforts to explore new hydrocarbon zones, unlocking further production upside and strengthening long-term international partnerships. Occidental expects its international operation to contribute in the range of 226-236 thousand barrels of oil equivalents per day in 2025 to total production. The international initiatives enhance Occidental's free cash flow profile and provide a cushion against domestic concentration risk. With robust operations in resilient global basins and a growing portfolio of low-carbon technologies, Occidental trades at an attractive valuation and offers compelling upside potential as its international strategy continues to evolve. How International Operations Aid U.S. Oil & Gas Companies International operations support U.S.-based oil and gas companies by diversifying revenue streams, stabilizing cash flows and reducing reliance on domestic markets. It supports companies like ExxonMobil XOM and Chevron CVX by providing diversified production sources and reducing exposure to domestic market fluctuations. ExonMobil's offshore assets in Guyana and LNG projects in Papua New Guinea drive high-margin growth, while Chevron's stakes in Kazakhstan's Tengiz field and Australia's LNG operations contribute significantly to earnings and cash flow. International exposure positions both companies to capitalize on emerging market demand and global energy transition opportunities. OXY's Earnings Estimate is Going Down The Zacks Consensus Estimate for Occidental's earnings per share in 2025 and 2026 has decreased 10.16% and 17.38%, respectively, in the past 60 days. Occidental's ROE Lower Than the Industry Return on equity ('ROE'), a profitability measure, reflects how effectively a company utilizes its shareholders' funds to generate income. The trailing 12-month ROE of OXY is 16.6%, a tad lower than its industry's 16.89%. OXY Stock's Price Performance Occidental's shares have gained 3.2% in the past month compared with the industry 's growth of 5.4%. OXY's Zacks Rank Occidental currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Picks Stock Most Likely to "At Least Double" Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren't winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%. See Our Top Stock to Double (Plus 4 Runners Up) >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chevron Corporation (CVX): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report This article originally published on Zacks Investment Research (
Globe and Mail
4 days ago
- Business
- Globe and Mail
Prediction: Warren Buffett Will Buy These 3 Stocks During His Final 6 Months As Berkshire Hathaway CEO
The end of an era is coming. Warren Buffett will step down as CEO of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) at the end of 2025 after six decades leading the company. He'll remain Berkshire's chairman, but to say Buffett will be missed is an understatement. Buffett isn't the kind of person to coast into retirement. You can bet he'll continue to read the annual reports of hundreds of companies throughout the rest of the year. And I suspect the legendary investor will find a few opportunities with his research. I predict that Buffett will buy the following three stocks during his final six months as Berkshire Hathaway CEO. 1. Occidental Petroleum I'd argue that Occidental Petroleum (NYSE: OXY) has become Buffett's favorite stock over the past few years, except for Berkshire Hathaway itself. Exhibit A is that he has purchased shares of the oil and gas producer a whopping 34 times since the first quarter of 2022. Buffett wrote to Berkshire Hathaway shareholders in 2024 that Occidental is one of a handful of stocks he expects the conglomerate will "maintain indefinitely." He noted that Berkshire owns warrants that allow it to "materially increase our ownership at a fixed price." Those options expire in a few years, though. Berkshire currently owns approximately 27% of Occidental, a stake so large that it's the conglomerate's sixth largest holding. However, I think Buffett is itching to buy even more. In August 2022, Berkshire secured regulatory approval to acquire up to 50% of Occidental. With the prospects of rising oil prices now that the U.S. is involved in Israel's attacks on Iranian nuclear facilities, Occidental could be an attractive target for deploying some of Berkshire's nearly $348 billion cash stockpile. 2. Domino's Pizza Buffett has been a net seller of stocks for 10 consecutive quarters. However, that didn't stop him from gobbling up shares of Domino's Pizza (NASDAQ: DPZ) over the past three quarters. I predict the "Oracle of Omaha" is still hungry for more. Why? For one thing, Domino's Pizza's share price is approaching levels when Berkshire increased its stake in the first quarter of 2025. The price could soon be right for Buffett to buy again. Importantly, Domino's Pizza checks off a lot of the boxes on Buffett's list for buying a stock. He undoubtedly understands the company's business quite well. Domino's has a strong brand and is a leader in its industry. It's also highly resilient -- a quality that could matter to Buffett even more now than in the past during these turbulent times. The following chart highlights an incredibly attractive attribute of Domino's Pizza that many stocks can't boast. Its share price has soared over the past 10 years while its valuation, based on the trailing 12-month price-to-earnings ratio, has fallen. Buffett could make a bigger bet that this trend will continue. DPZ data by YCharts 3. Berkshire Hathaway You might find this strange, but I'm least confident in my prediction that Buffett will buy more shares of Berkshire Hathaway itself. However, I nonetheless think there's a pretty good chance that he'll authorize some stock buybacks over the next six months. Berkshire hasn't bought back any of its shares in the last two quarters. Buffett explained in the conglomerate's annual shareholder meeting in May, "If Berkshire buys Berkshire shares in repurchases, we now pay more than you will pay if you buy Berkshire shares." A 1% tax on companies that buy back shares makes it more expensive for Berkshire to repurchase its own stock . What will it take for Buffett to buy additional Berkshire Hathaway shares? The stock must decline quite a bit. I think this could happen for a couple of reasons. First, as Buffett's retirement draws closer, some investors could move out of the stock (ill-advisedly, in my opinion). Second, high tariffs could either negatively affect some of Berkshire's businesses or the tariff uncertainty could dissipate, causing investors to find other stocks more attractive. Regardless of how it happens, if Berkshire's share price falls enough, expect the buybacks to resume. Should you invest $1,000 in Berkshire Hathaway right now? Before you buy stock in Berkshire Hathaway, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Berkshire Hathaway wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor 's total average return is994% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 23, 2025
Yahoo
4 days ago
- Business
- Yahoo
Prediction: Warren Buffett Will Buy These 3 Stocks During His Final 6 Months As Berkshire Hathaway CEO
Buffett will likely buy more of one of his favorite oil stocks -- Occidental Petroleum -- over the next six months. He could be hungry for a larger position in Domino's Pizza. The legendary investor also just might authorize more Berkshire Hathaway stock buybacks. 10 stocks we like better than Berkshire Hathaway › The end of an era is coming. Warren Buffett will step down as CEO of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) at the end of 2025 after six decades leading the company. He'll remain Berkshire's chairman, but to say Buffett will be missed is an understatement. Buffett isn't the kind of person to coast into retirement. You can bet he'll continue to read the annual reports of hundreds of companies throughout the rest of the year. And I suspect the legendary investor will find a few opportunities with his research. I predict that Buffett will buy the following three stocks during his final six months as Berkshire Hathaway CEO. I'd argue that Occidental Petroleum (NYSE: OXY) has become Buffett's favorite stock over the past few years, except for Berkshire Hathaway itself. Exhibit A is that he has purchased shares of the oil and gas producer a whopping 34 times since the first quarter of 2022. Buffett wrote to Berkshire Hathaway shareholders in 2024 that Occidental is one of a handful of stocks he expects the conglomerate will "maintain indefinitely." He noted that Berkshire owns warrants that allow it to "materially increase our ownership at a fixed price." Those options expire in a few years, though. Berkshire currently owns approximately 27% of Occidental, a stake so large that it's the conglomerate's sixth largest holding. However, I think Buffett is itching to buy even more. In August 2022, Berkshire secured regulatory approval to acquire up to 50% of Occidental. With the prospects of rising oil prices now that the U.S. is involved in Israel's attacks on Iranian nuclear facilities, Occidental could be an attractive target for deploying some of Berkshire's nearly $348 billion cash stockpile. Buffett has been a net seller of stocks for 10 consecutive quarters. However, that didn't stop him from gobbling up shares of Domino's Pizza (NASDAQ: DPZ) over the past three quarters. I predict the "Oracle of Omaha" is still hungry for more. Why? For one thing, Domino's Pizza's share price is approaching levels when Berkshire increased its stake in the first quarter of 2025. The price could soon be right for Buffett to buy again. Importantly, Domino's Pizza checks off a lot of the boxes on Buffett's list for buying a stock. He undoubtedly understands the company's business quite well. Domino's has a strong brand and is a leader in its industry. It's also highly resilient -- a quality that could matter to Buffett even more now than in the past during these turbulent times. The following chart highlights an incredibly attractive attribute of Domino's Pizza that many stocks can't boast. Its share price has soared over the past 10 years while its valuation, based on the trailing 12-month price-to-earnings ratio, has fallen. Buffett could make a bigger bet that this trend will continue. You might find this strange, but I'm least confident in my prediction that Buffett will buy more shares of Berkshire Hathaway itself. However, I nonetheless think there's a pretty good chance that he'll authorize some stock buybacks over the next six months. Berkshire hasn't bought back any of its shares in the last two quarters. Buffett explained in the conglomerate's annual shareholder meeting in May, "If Berkshire buys Berkshire shares in repurchases, we now pay more than you will pay if you buy Berkshire shares." A 1% tax on companies that buy back shares makes it more expensive for Berkshire to repurchase its own stock . What will it take for Buffett to buy additional Berkshire Hathaway shares? The stock must decline quite a bit. I think this could happen for a couple of reasons. First, as Buffett's retirement draws closer, some investors could move out of the stock (ill-advisedly, in my opinion). Second, high tariffs could either negatively affect some of Berkshire's businesses or the tariff uncertainty could dissipate, causing investors to find other stocks more attractive. Regardless of how it happens, if Berkshire's share price falls enough, expect the buybacks to resume. Before you buy stock in Berkshire Hathaway, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Berkshire Hathaway wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Keith Speights has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway and Domino's Pizza. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy. Prediction: Warren Buffett Will Buy These 3 Stocks During His Final 6 Months As Berkshire Hathaway CEO was originally published by The Motley Fool
Yahoo
6 days ago
- Business
- Yahoo
JPMorgan Lowers PT for Occidental Petroleum (OXY), Keeps Neutral Rating
Occidental Petroleum Corporation (NYSE:OXY) is one of the 10 Best Oil and Gas Stocks to Buy Now. On May 9, JPMorgan lowered its price target on Occidental Petroleum Corporation (NYSE:OXY) from $52 to $47 and kept a 'Neutral' rating. JPMorgan analysts highlighted the corporation's Q1 2025 results and the management's efforts to cut costs amid a challenging oil price environment. Oil derricks in the background with a few workers in the foreground, emphasizing the company's oil and gas production activities. Occidental Petroleum Corporation (NYSE:OXY) reported that it reduced drilling cycle times in the Permian Basin by 15% through enhanced well designs and strong execution. These actions led to a 10% decrease in well costs year-over-year, exceeding the target of 5-7% that the company had set just a few months ago. Thanks to these improvements, the corporation plans to decommission two drilling rigs in the Permian in 2025. However, Occidental Petroleum Corporation (NYSE:OXY) aims to bring more wells online and with slightly increased production even with this reduced rig count. The corporation has lowered its full-year capital guidance by $200 million. Additionally, Occidental Petroleum Corporation (NYSE:OXY) aims to cut its operational expenses by $150 million in 2025. Occidental Petroleum Corporation (NYSE:OXY) is an American multinational energy company with assets mainly in the US, the Middle East, and North Africa. It is one of the largest oil and gas producers in the US. While we acknowledge the potential of OXY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 11 Stocks That Will Bounce Back According To Analysts and 11 Best Stocks Under $15 to Buy According to Hedge Funds. Disclosure: None. Error al recuperar los datos Inicia sesión para acceder a tu cartera de valores Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos
Yahoo
19-06-2025
- Business
- Yahoo
Should You Buy Occidental Petroleum While It's Below $50?
Berkshire Hathaway's cost basis on its Occidental position is above $50 a share. The oil company expects to deliver roughly $1.5 billion of incremental annual free cash flow by 2027, unrelated to oil prices. It has additional upside catalysts from rising oil prices and its carbon capture and storage business. 10 stocks we like better than Occidental Petroleum › Shares of Occidental Petroleum (NYSE: OXY) have dipped over the past year. They've fallen from a peak of more than $60 a share to less than $50. That's largely due to a decline in oil prices, which have fallen from over $80 a barrel to their recent level just above $70 per barrel. Here's a look at several reasons why you should buy the oil stock while it's below $50 a barrel. Warren Buffett's Berkshire Hathaway has been snapping up shares of Occidental in recent years. Buffett's company owns over 264.9 million shares (26.9% of Occidental's outstanding shares). Those shares are currently worth more than $12.6 billion. That's 4.4% of Berkshire's investment portfolio, making Occidental its sixth-largest position. Berkshire's cost basis on its Occidental position is in the low $50s. Buffett's company has capitalized on opportunities to add to its position when the oil stock has dipped below $50 a share over the past year. In addition to buying shares on the open market, Buffett's company holds warrants to buy another $5 billion of Occidental's stock at $59.62 apiece. His company received those warrants when it made its $10 billion preferred stock investment in Occidental in 2019 to support its purchase of Anadarko Petroleum. Oil prices have a major impact on Occidental Petroleum's cash flow and stock price because its oil and gas business is its biggest moneymaker. While its fossil fuel business will continue to be its main profit driver, the company expects to capture a roughly $1.5 billion improvement in its free cash flow over the next few years, unrelated to oil prices. Occidental Petroleum expects to reach an inflection point next year that will boost its free cash flow by $1 billion in 2026. It anticipates its chemical business (OxyChem) will deliver more than $450 million of incremental free cash flow in 2026 from the benefits of expansion projects, including its Battleground plant and the roll-off of the associated capital spending. Meanwhile, the company expects to capture about $450 million in additional earnings in its midstream business as legacy contracts roll off and it reduces capital spending in that segment. Finally, Occidental anticipates its debt repayment strategy will deliver over $135 million in annual interest expense savings in 2026. The company sees the total free-cash-flow improvement from these catalysts rising to around $1.5 billion in 2027. This meaningful improvement will provide it with a higher foundation of stable base cash flows. Occidental can use that incremental excess free cash flow to grow shareholder value via dividend increases, repurchases (common shares and Berkshire's preferred stock), and additional debt repayment. On top of the visible growth from Occidental's non-oil businesses, it has additional upside potential from higher oil prices. If the current conflicts in the Middle East or between Russia and Ukraine escalate to the point where major energy infrastructure gets destroyed, oil prices could spike. Likewise, an unexpected supply issue elsewhere (potentially caused by a natural disaster or human decision) could also drive up crude prices. Meanwhile, Occidental is also building a carbon capture and storage business that could start paying off over the next year. It's starting up its initial direct air capture (DAC) unit, Stratos, this year and expects to be at full capacity by the middle of 2026. It has been commercializing the project by selling carbon credits to companies seeking to decarbonize their operations. Getting this project up and running will showcase the company's ability to commercialize this technology, which Occidental believes could be a big moneymaker over the long term. It would prove to the market that the company can continue developing DAC projects, which would enhance its long-term growth prospects. The dip in Occidental's stock price has caused it to trade below Buffett's purchase level. On top of that, the company has many upside catalysts, many of which don't rely on improving oil prices. Given all that, the dip below $50 looks worth buying for those seeking lower-risk exposure to the oil market. Before you buy stock in Occidental Petroleum, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Occidental Petroleum wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $660,821!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $886,880!* Now, it's worth noting Stock Advisor's total average return is 791% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Matt DiLallo has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy. Should You Buy Occidental Petroleum While It's Below $50? was originally published by The Motley Fool
