Exxon also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and specialty products, and it transports and sells crude oil, natural gas and petroleum products.
Top Wall Street analysts expect Exxon to remain a key beneficiary in this higher oil price environment, and most remain strongly positive about the company’s sharp positive inflection in capital allocation strategy, upstream portfolio, and leverage to a further demand recovery, with Exxon Mobil offering greater downstream/chemicals exposure relative to peers.
The top U.S. oil producer reported a per-share profit of $4.68, easily exceeding Wall Street’s consensus view, on a huge jump in natural gas earnings, continued high oil prices and strong fuel sales.
The dividend has a yield of 3.48% and will continue to be defended. Jefferies has set a $133 price target, while the consensus target is $118.18. Exxon Mobil stock closed on Monday at $105.17.
Occidental Petroleum
Over the past year, Berkshire Hathaway has been buying shares of the company in a massive way. Occidental Petroleum Corp. (NYSE: OXY) engages in the acquisition, exploration and development of oil and gas properties in the United States, the Middle East, Africa and Latin America.
Its Oil and Gas segment explores for, develops and produces oil and condensate, NGLs and natural gas. Its Midstream and Marketing segment gathers, processes, transports, stores, purchases and markets oil, condensate, NGLs, natural gas, carbon dioxide and power. This segment also trades around its assets, consisting of transportation and storage capacity, and it invests in entities.
The Chemical segment manufactures and markets basic chemicals, including chlorine, caustic soda, chlorinated organics, potassium chemicals, ethylene dichloride, chlorinated isocyanurates, sodium silicates and calcium chloride.
Earlier this year, Berkshire Hathaway received regulatory approval to buy up to 50% of the stock. The investment giant currently owns 194.4 million shares of Occidental, which is a 20.9% stake. Some reports have indicated Warren Buffet will not acquire a controlling stake.
Shareholders receive a 0.83% dividend. Occidental Petroleum stock has a $74 price target at Barclays. The consensus target is higher at $77.23, and Monday’s closing print was $62.41.
These five top stocks have backed up in price to the lowest levels since October, and they are offering investors outstanding entry points. Many in the industry feel the oil prices have the ability to trade much higher in 2023, as inventories have shrunk dramatically and there is the hope that hostilities in Ukraine turn for the better and the Covid lockdowns in China are loosened.
Originally published at 24/7 Wall St.
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