2023-07-05 16:18:12
Warren Buffett buying more Occidental Petroleum !According to the data disclosed by US Securities and Exchange Commission (SEC), Warren Buffet
Berkshire Hathaway's (BRK B) stake in
Occidental Petroleum Corp (OXY) has increased to above 25%.
Buffett's most recent invested US$120 million to increase its holdings of 2.14 million Occidental shares between June 26 and June 28, with an average purchase price of about US$57.05 per share. Berkshire had also purchased about 4.66 million Occidental shares on May 30. In other words, Buffett has increased his holdings in less than a month.
It also recently owned about US$9.5 billion of Occidental preferred shares carrying an 8% dividend, with warrants to buy another US$5 billion of Occidental shares at US$59.62 each.
Analysts estimate Occidental to report earnings per share (EPS) of US$0.974 per share, down 74.02% year-on-year. They estimated quarterly revenue of US$7.034 billion, down 34.12% year-on-year.
From the last quarter's results, Occidental's profit slowed despite production increasing to 1.22 million barrels of oil equivalent a day (BOE/D) from 1.079 million BOE/D in 2022. It has raised its full-year output projection to 1.195 million BOE/D.
Analysts expect energy prices to increase later in the year, especially since China's economic reopening leads to a significant upswing in oil demand. Analysts also expect Brent crude, the international benchmark, to increase to US$100 a barrel, despite China's disappointing reopening since dialing back its zero-Covid policies.
The share price of Occidental is down -6.00% year-to-date, and the last price was US$59.17
Bloomberg consensus rating has 12 Buys, 17 Holds, and 1 Sell, with a 12-month target price of US$68.15
Sources: Reuters, Business Insider, Rigzone
As at 9pm, Dow Jones Futures 34,447 (-0.55%).
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1.9K viewsedited 13:18
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