Occidental Petroleum
Over the past year, Berkshire Hathaway has been buying the shares of Occidental Petroleum Corp. (NYSE: OXY), which engages in the acquisition, exploration and development of oil and gas properties in the United States, the Middle East, Africa and Latin America.
The company’s Oil and Gas segment explores for, develops and produces oil and condensate, natural gas liquids (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.
Last Friday, Berkshire Hathaway received regulatory approval to buy up to 50% of the stock. On last look the investment giant owns 188.5 million shares of Occidental, which is equal to a 20.2% position. Some reports have indicated Buffett will not acquire a controlling stake.
Investors receive a 0.75% dividend. Truist Financial has a $105 price target on Occidental Petroleum stock. The $75.63 consensus is closer to Tuesday’s closing print of $73.78, which was up almost 7% on the day.
‘Strong Buy’ Dividend Energy Stocks
Devon Energy
This may be one of the best value propositions in the sector, as it uses a variable dividend strategy. Devon Energy Corp. (NYSE: DVN) is an independent energy company that primarily engages in the exploration, development and production of oil, natural gas and NGLs in the United States and Canada. It operates approximately 19,000 wells.
The company also offers midstream energy services, including gathering, transmission, processing, fractionation and marketing to producers of natural gas, NGLs, crude oil and condensate through its natural gas pipelines, plants and treatment facilities.
Production is weighted toward crude oil while growth opportunities are liquids focused, anchored by the Delaware Basin, SCOOP/STACK, Eagle Ford Shale, Canadian Oil Sands, and the Barnett. Devon also owns equity in the publicly traded midstream master limited partnership (MLP) EnLink.
Shareholders receive a 7.48% dividend. The Truist Financial target price is $115, and the consensus target is $78.03. Devon Energy stock closed almost 4% higher Tuesday at $70.88.
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