Should You Buy Occidental Petroleum While It's Below $55?

Core Insights - Occidental Petroleum is a significant player in the energy sector and one of the top oil and gas producers in the U.S. [1] - The company has faced challenges in recent years, with its stock price declining by 35% from a peak of $76 per share in late 2022 [1] - Berkshire Hathaway continues to invest in Occidental, holding approximately 28% of its outstanding stock [3] Business Overview - Occidental operates in various segments of the oil and gas industry, with a strong presence in the Permian Basin and operations in the Middle East and Africa [5] - The primary source of revenue for Occidental is exploration and production, making it sensitive to fluctuations in oil and gas prices [6] - The company achieved record production levels last year and repaid $4.5 billion in near-term debt ahead of schedule [8] Financial Performance - Occidental's average breakeven production point is around $60 per barrel, with many new locations acquired having even lower breakeven costs [10] - The stock is currently valued at a forward price-to-earnings ratio of approximately 12.3, making it a reasonable investment option for those seeking exposure to the oil and gas sector [12] Future Prospects - The company is developing large-scale direct air capture (DAC) facilities through its subsidiary 1PointFive, with significant potential in carbon capture and storage [11][13] - CEO Vicki Hollub estimates that the carbon capture and storage industry could be valued between $3 trillion and $5 trillion in the future [13]