Group 1: Occidental Petroleum - Occidental Petroleum's stock has dropped 12% despite beating revenue and earnings expectations in Q2 2024, reporting revenue of $6.88 billion and adjusted EPS of $1.03, compared to analyst expectations of $6.8 billion and $0.77 [2] - The decline in stock price is attributed to analysts reducing price targets due to anticipated declines in energy prices, but long-term investors may find value in the stock [3] - The company expects a strong finish to 2024, bolstered by a $12 billion acquisition of CrownRock, which is projected to contribute free cash flow as long as oil prices remain above $40 per barrel [3][4] - Occidental Petroleum's free cash flow yield exceeds that of peers like Diamondback Energy and Hess, indicating strong operational performance [4] - The current stock price is near its 52-week low, presenting a potential buying opportunity for investors [5] Group 2: Whirlpool - Whirlpool has faced challenges due to prolonged high interest rates impacting the housing market and the major domestic appliance (MDA) market, leading to a shift towards replacement purchases [6] - The housing slowdown has negatively affected margins, prompting management to cut full-year earnings and cash flow guidance [6] - Despite these challenges, there is potential for recovery as lower interest rates could boost the housing market and discretionary spending on appliances [7] - Whirlpool has seen profit growth in segments outside of North America MDA and has implemented cost-cutting measures, aiming to reduce costs by at least $300 million this year [7] - The stock is currently undervalued at less than 9 times Wall Street analyst earnings expectations for 2024, with a dividend yield of 6.8%, making it an attractive option for passive income [7]

Occidental Petroleum (OXY) closed at $51.58 in the latest trading session, marking a +0.45% move from the prior day. The stock outperformed the S&P 500, which registered a daily loss of 0.03%. Elsewhere, the Dow lost 0.61%, while the tech-heavy Nasdaq added 0.56%.Prior to today's trading, shares of the oil and gas exploration and production company had gained 2.89% over the past month. This has outpaced the Oils-Energy sector's loss of 10.96% and the S&P 500's gain of 1.39% in that time.The investment commu ...

Despite what Warren Buffett’s overall reputation might suggest, not all of his stock picks have been winners.In 2024, this fact is showcased by the fortunes of ‘The Oracle of Omaha’s’ sixth-largest bet and second-biggest energy holding, Occidental Petroleum (NYSE: OXY), which is, at press time on October 23, trading near its 2.5-year lows.Indeed, OXY stock – which made up 5.6% of the Buffett portfolio, per the latest 13-f filing – is 13.24% in the red year-to-date (YTD) and an even deeper 17.06% down in the ...

Core Viewpoint - Warren Buffett's Berkshire Hathaway has significantly increased its stake in Occidental Petroleum despite the company's recent struggles and stock price decline, indicating confidence in the long-term potential of the energy company [1][2]. Group 1: Berkshire Hathaway's Investment - Berkshire Hathaway has become one of Occidental's largest shareholders, holding over 25% of the company's outstanding shares as of Q2 [2]. - The initial investment in Occidental was part of the acquisition of Anadarko in 2019, which involved a $38 billion deal and included a $10 billion investment in preferred stock with an 8% dividend yield [2]. - As of June 2024, Berkshire holds warrants for 83.9 million common shares of Occidental at an exercise price of $59.62 per share, while Occidental currently trades at a discount to these warrants [2]. Group 2: Financial Performance and Debt Management - Occidental's business is cyclical and heavily focused on upstream operations, making it sensitive to oil price fluctuations [3]. - In 2022, Occidental capitalized on rising oil prices, generating significant profits, which were used to pay down $10 billion in debt and reduce annual interest charges by $400 million [3]. - The company has continued to strengthen its financial position in 2023, reducing debt by $3 billion as part of a $4.5 billion debt-reduction plan, achieving a 60% reduction from its peak [3]. Group 3: Market Conditions and Future Outlook - Recent market conditions have negatively impacted Occidental, with oil prices falling due to slowing global demand, particularly from China, and strong U.S. production [4]. - OPEC and the International Energy Agency have lowered global oil demand growth forecasts, predicting a "heavy surplus" of oil supplies in 2025, which could keep prices low [5]. - Occidental's investments in direct-air-capture (DAC) technology present a promising growth opportunity, with potential revenues comparable to current oil and gas production [5][6]. - The company's subsidiary, 1PointFive, received $500 million from the U.S. Department of Energy to support DAC development, with potential funding increasing to $650 million for an expanded carbon network [6]. Group 4: Long-term Investment Considerations - Occidental remains vulnerable to oil price swings, which have affected its stock price, and may continue to face headwinds in the near term [7]. - Despite the volatility, the company's balance sheet is improving, and long-term demand for oil and gas is expected to grow [7]. - The long-term potential of carbon capture utilization and sequestration (CCUS) technology could serve as a significant growth catalyst for Occidental [7].

Group 1: Market Performance - The S&P 500 index has increased nearly 23% this year, but 119 stocks within the index have lost value as of October 11 [1] - Berkshire Hathaway, despite being a long-term investor, has seen one of its top holdings struggle compared to the broader market [1] Group 2: Berkshire Hathaway and Occidental Petroleum - Berkshire Hathaway has been significantly increasing its stake in Occidental Petroleum since late 2019, now owning close to 28% of all outstanding shares, which constitutes nearly 4.5% of its total portfolio [1][2] - Berkshire also holds $10 billion in preferred stock and warrants from Occidental, acquired after funding one of the company's acquisitions in early 2019 [2] Group 3: Oil Market Dynamics - Occidental Petroleum has faced challenges this year, with its stock down 8% and forecasts for U.S. oil demand and prices being reduced for the next year [3] - West Texas Intermediate crude oil prices are expected to decline to $73.13 per barrel [3] Group 4: Future Outlook and Investment Considerations - The decision to invest in Occidental depends on the outlook for oil prices, which could be influenced by geopolitical tensions, such as conflicts in the Middle East [4] - The Federal Reserve's interest rate cuts may weaken the dollar, potentially leading to higher oil prices, although historical correlations may not always hold true [4][5] - Occidental can break even on production with oil prices below $60 per barrel, providing some margin for error [5]

Berkshire Hathaway is arguably always Buffett's favorite stock. But another stock commands a strong second place. Many investors (including me) have observed that Warren Buffett has built a massive cash stockpile for Berkshire Hathaway (BRK.A -0.25%) (BRK.B 0.03%). Many have also noticed Buffett has been a net seller of stocks for seven consecutive quarters. Does this mean the legendary investor can no longer find any stocks he likes? Not at all. Buffett isn't buying many stocks, but he's still buying some. ...

Company Overview - Occidental Petroleum (Oxy) is an integrated energy company with assets in upstream (oil and natural gas production), midstream (pipelines), and downstream (chemicals and refining) segments, similar to industry giants like ExxonMobil and Chevron [2] - The company's portfolio spans the United States, the Middle East, and North Africa, though its geographic diversification is less extensive compared to larger peers [3] - Oxy has a market capitalization of $50 billion, significantly smaller than Exxon's $550 billion and Chevron's $270 billion [3] Growth Strategy - Oxy is actively pursuing acquisitions to expand its scale and compete with industry giants, as seen in its outbidding of Chevron for Anadarko Petroleum and its recent acquisition of Crown Rock [4][5] - The company aims to grow into one of the top players in the energy industry by acquiring assets similar to those targeted by larger competitors [5] - Acquisitions are particularly meaningful for Oxy due to its smaller size, providing more significant growth opportunities compared to its larger peers [7] Industry Context - The energy industry is transitioning toward cleaner energy sources like solar and wind, but oil and natural gas are expected to remain critical components of the global energy mix for decades [6] - Industry consolidation favors large and efficient operators, positioning companies like Exxon and Chevron as leaders, while Oxy seeks to expand its operating scale through acquisitions [6][7] Competitive Positioning - Oxy's business model mirrors that of Exxon and Chevron, but its smaller size makes it unlikely to fully catch up to these giants, despite its acquisition-focused growth strategy [8] - The company has demonstrated financial prudence by paying down debt and focusing on smaller, more manageable acquisitions, such as Crown Rock, following past missteps like the Anadarko deal [4][7] Investment Perspective - Oxy represents a growth opportunity for investors willing to take on additional risk, as it actively competes with larger industry players through strategic acquisitions [9] - Conservative investors may prefer established giants like Exxon or Chevron, while growth-oriented investors could find value in Oxy's expansion efforts [9]

Core Insights - Occidental Petroleum Corp has a GF Score of 68 out of 100, indicating poor future outperformance potential [2] - The company has experienced a daily gain of 0.68% but a three-month decline of 11.28%, suggesting volatility in its stock performance [1] Company Overview - Occidental Petroleum Corp is an independent exploration and production company with operations in the United States, Latin America, and the Middle East [3] - As of the end of 2023, the company reported net proved reserves of nearly 4 billion barrels of oil equivalent and an average net production of 1,234 thousand barrels of oil equivalent per day, split evenly between oil and natural gas [3] - The company's market capitalization is $50.54 billion, with sales of $27.12 billion and an operating margin of 20.61% [3] Financial Performance - For the year ending December 31, 2023, Occidental's revenue was $28.3 billion, with a gross profit of $10.1 billion, resulting in a gross profit margin of 35.8% [4] - The company reported a pretax income of $6.4 billion from oil and gas operations, accounting for 22.8% of total income [4] - The financial strength indicators reveal a concerning Alman 7-score of 1.74, below the distress zone, and a low cash-to-debt ratio of 0.09, indicating potential financial distress [5] Growth Prospects - Occidental Petroleum Corp shows a lack of significant growth, reflected in its low growth rank and a predictability rank of just one star out of five, which adds to investor uncertainty regarding revenue and earnings consistency [6]

Core Viewpoint - Occidental will announce its third quarter 2024 financial results on November 12, 2024, and will hold a conference call on November 13, 2024, to discuss these results [1][2]. Group 1: Financial Results Announcement - The third quarter 2024 financial results will be released after the market closes on November 12, 2024 [1]. - A conference call to discuss the financial results is scheduled for November 13, 2024, at 1 p.m. Eastern/12 p.m. Central [1]. Group 2: Accessing the Conference Call - Participants can access the conference call by calling 1-866-871-6512 (international callers dial 1-412-317-5417) or via webcast at oxy.com/investors [2]. - Pre-registration for the conference call is available at a specified link [2]. - A recording of the webcast will be posted on the company's website shortly after the call concludes [2]. Group 3: Company Overview - Occidental is an international energy company with significant assets in the United States, the Middle East, and North Africa [3]. - The company is one of the largest oil and gas producers in the U.S., with a leading position in the Permian and DJ basins, as well as offshore in the Gulf of Mexico [3]. - Occidental's midstream and marketing segment focuses on flow assurance and maximizing the value of oil and gas [3]. - The chemical subsidiary, OxyChem, produces essential building blocks for various life-enhancing products [3]. - Oxy Low Carbon Ventures is dedicated to advancing technologies and business solutions that promote economic growth while reducing emissions [3].

Group 1 - Occidental Petroleum is recognized as a well-managed energy company with significant potential for production growth through both organic means and acquisitions [1] - The company is expanding its operational footprint and utilizing excess cash flow to reduce its debt, resulting in a more streamlined balance sheet [1]