Author Topic: OXY - Occidental Petroleum  (Read 16673 times)

ValueMaven

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Re: OXY - Occidental Petroleum
« Reply #10 on: November 17, 2019, 04:02:23 PM »
agreed - was the first time i've heard of that!!

basically Salomon got burnt


RadMan24

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Re: OXY - Occidental Petroleum
« Reply #11 on: November 17, 2019, 07:51:20 PM »
https://www.youtube.com/watch?v=FEoqs-6Y68A

Good interview for Buffett's perspectives - feel free to compare that to Ichan's

SI

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Re: OXY - Occidental Petroleum
« Reply #12 on: November 17, 2019, 10:43:02 PM »
The equity web got was likely the pref div which could be script at oxy’s discretion.

gfp

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Re: OXY - Occidental Petroleum
« Reply #13 on: November 18, 2019, 04:43:13 AM »
Its a very good point,  but I'm not sure that explains ~7.5 million shares of OXY owned by BRK.  The OXY deal closed on August 8th and the OXY shares listed are owned as of September 30th.  If it was something like $115 million, that could explain it - but it is almost double that amount and I'm not even sure there has been a dividend payment on the Prefs yet - cash or otherwise.  I believe Berkshire's deal terms are in a filing somewhere, so maybe it is easy enough to check when the first dividend payment would have arrived.

--> https://www.sec.gov/Archives/edgar/data/797468/000095015719000529/ex10-1.htm

dividend payment dates: "January 15, April 15, July 15 and October 15"

The equity web got was likely the pref div which could be script at oxy’s discretion.
« Last Edit: November 18, 2019, 05:09:10 AM by gfp »

Foreign Tuffett

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Re: OXY - Occidental Petroleum
« Reply #14 on: February 28, 2020, 12:44:55 PM »
Former Teldar Paper Vice President

scorpioncapital

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Re: OXY - Occidental Petroleum
« Reply #15 on: February 28, 2020, 01:32:36 PM »
I am of the old fashioned view that when Berkshire lends credit at a relatively high rate , it does so against companies it neither thinks is going belly up nor ones he thinks are going to be failures. Sure it will cut into returns but I think uncle Warren does look out for the companies he is involved with , debt or equity , at least I hope this is a correct Interpretation

Spekulatius

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Re: OXY - Occidental Petroleum
« Reply #16 on: February 28, 2020, 03:55:03 PM »
You know all hope is lost when an oil company emphasizes their “carbon reduction leadership” in their sucky earnings presentation.
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kab60

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Re: OXY - Occidental Petroleum
« Reply #17 on: February 28, 2020, 11:29:53 PM »
Anyone attracted to this space might wanna check out Equinor. You get a free option on offshore wind (check out Ørsted to get an Idea as for how that might evolve). Large divy, nice FCF yield after building out their large oilfield Johan Sverdrup. And none of these crappy decline rates like onshore. Also, all the ESG guys have piled into Ørsted, Vestas, Enphase, SMA etc - Equinor is still tainted, obviously, by their large Oil and Gas footprint.

Spekulatius

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Re: OXY - Occidental Petroleum
« Reply #18 on: February 29, 2020, 05:38:37 AM »
Anyone attracted to this space might wanna check out Equinor. You get a free option on offshore wind (check out Ørsted to get an Idea as for how that might evolve). Large divy, nice FCF yield after building out their large oilfield Johan Sverdrup. And none of these crappy decline rates like onshore. Also, all the ESG guys have piled into Ørsted, Vestas, Enphase, SMA etc - Equinor is still tainted, obviously, by their large Oil and Gas footprint.
Vitaliy Katsenelson likes it too:
https://contrarianedge.com/equinor-a-good-crisis-is-never-wasted/
Life is too short for cheap beer and wine.

kab60

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Re: OXY - Occidental Petroleum
« Reply #19 on: March 01, 2020, 02:49:38 AM »
Yep, but funny he glosses over offshore wind. Everyone is trailing Ørsted, but Equinor seems pretty committed. Equinor has a target of 4-6 GW in 2026, Ørsted 15 GW in 2030. Ørsted will probably raise that target sooner rather than later, but still, 4-6 GW is worth quiet a bit in a negative interest rate environment, and the market is growing hugely. Comes down to execution, but Sverdrup was 30 pct below cost estimates, GE is entering offshore wind and lowering prices on turbines, so pretty good dynamics. When offshore wind becomes sizeable and can fund projects internally it would make sense to spin it off. Check Ørsteds multiple.

From AR: 2026, Equinor expects a production capacity from renewable projects of 4 to 6 GW, Equinor share, mainly based on the current project portfolio. Thisis around 10 times higher than today’s capacity, implying an annual average growth rate of more than 30%. Towards 2035, Equinor expects toincrease installed renewables capacity further to 12 to 16 GW, dependent on availability of attractive project opportunities. Equinor expects to achieveunlevered real project returns of 6 to 10% and can achieve significantly higher return on equity investments through portfolio optimisation and efficient useof project financing
« Last Edit: March 01, 2020, 02:59:30 AM by kab60 »