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Stockchase Opinions

Sandy McIntyreOccidental Petroleum CorpOXYTOP PICKFeb 02, 2011

Refining. Oil weighted senior with a pristine balance sheet and high cash flow yield. Primarily us operations. Refining margins are improving. Can see some growth in the name.
$98.66

Stock price when the opinion was issued

$51.85

As of Jun 18, 2026. Market Open.

integrated oils
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COMMENT

Berkshire just added to their large position, now 28%. This is a make or break quarter for energy. There's a divergence between the spot price of oil and oil stocks. Stop looking at that price which had gone nowhere in over 2 years.

BUY

With a strong balance sheet and earnings growth, OCY bought Crownrock. However, this won't make a difference in the face of supply of crude oil overwhelming demand. Yes, Berkshire's ownership is like a stamp of approval and is a big reason to own Oxy.

DON'T BUY

Is shocked this hasn't move up more after Buffett added more shares and the war in the Middle East.

TRADE

He bought this late. Bought it because one of the greatest investors, Buffett, in the world bought it. Energy is a tough sector; expects the momentum will eventually turn and oil falls to the $80s.

HOLD

Investors think the oil market is still in 2022. It's not. Would sell energy, though still holds this. Is nothing more than a hold.

BUY
BRK.A boosting its stake.

Likes it. Encouraging. Warren Buffett, one of the shrewdest, most patient investors of all time, is stepping up in the face of widespread negative sentiment. The most uncomfortable buys are usually the best ones. Don't chase the herd and buy NVDA. Be patient and tune out the noise.

COMMENT
Top stock on the S&P in 2022, up 115%. The heavy short action has unwound a lot. Energy is the top performer by far--even beyond crude oil prices--in 2022. Looking ahead: these companies will focus on improving debt and serving shareholders.
BUY
Things were dicey for them in 2019 when they borrowed a lot of money to buy a company, then crude oil plummeted in April 2020 and so did OXY. But OXY is incredibly sensitive to oil prices, falling further when crude oil falls, but rallying higher when crude rises. Therefore, it's gone from fighting for survival to printing money. Who knows? Maybe Berkshire Hathaway will buy all of OXY, since BH keeps buying more shares of it. OXY is still good if crude oil holds at this price.
HOLD
Would not buy shares now (large upside has already occurred). Warren Buffett likes cash flow which company is excellent at producing. Not as much upside for company.
BUY
She has been adding to energy on this pullback. Oil companies can make money at $40-50 oil/barrel. Oil stocks remain cheap and earnings went up for the group. It's her favourite sector.
COMMENT
options It was trading just beneath $63. A big buyer added 5,000 of the June 67.50 calls were bought for for $3.25 and selling an upside call against it.
DON'T BUY
There is too much leverage now. There is a solid underpinning of supply of fossil fuels so if the industry does well OXY does well, but if the industry does poorly then OXY does poorly because of the balance sheet.
DON'T BUY
It is like the global oil sector as a whole -- they got pummeled when oil prices when low. Unless someone thinks oil prices will go up on a sustainable basis from here, this is not an attractive sector.
WEAK BUY
Entire sector is a buy. Management has made questionable decisions. COP looks better to him. We have fantastic companies such as SU and TOU in Canada, so you don't need to go to the US.
BUY
They report Monday and he expects good numbers based on other oil companies' stellar reports and the high price of crude.