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, exceeding the $3.89 consensus view, on a huge jump in natural gas earnings, continued high oil prices and strong fuel sales.
The dividend yield here is 3.28%. The $136 BofA Securities price target compares with a $114.64 consensus target. Exxon Mobil stock closed trading on Thursday at $111.10.
Occidental Petroleum
Over the past year, Berkshire Hathaway has been buying the 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. The company is expected to report third-quarter results next week.
Shareholders receive a 0.70% dividend. Occidental Petroleum stock has an $84 price target at Barclays. The $75.45 consensus target is closer to Thursday’s closing share price of $72.16.
Given the shaky geopolitical state of the world, we decided to focus on the mega-cap domestic sector leaders. Needless to say, if the current administration does not pivot at some point on the overregulation and energy policy mistakes, the current supply situation likely will get worse. Now is a good time to stay at home with energy leaders based in the United States.
Originally published at 24/7 Wall St.
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