OXY
Posted: Wed Jul 20, 2022 8:10 pm
Someone asked me why I liked OXY
I summarize my email here
There is a ton of good info in the quarterly presentations.
This is 4 months old, wb comments
https://www.youtube.com/watch?v=FHjlBouhrNU
Note the price is about the same as it was 4 months ago
Regarding OXY
Last qtr is right here
https://www.oxy.com/investors/quarterly-earnings/
Go thru the presentation. Things that jumped off the page for me
https://www.oxy.com/globalassets/docume ... slides.pdf
slide 5
3.3 cash generated 3.3 b debt paid
slide 14 - 15 goals and priorities
They are following that road map
slide 20
every dollar up is worth 205 m ...wti is up from q1 by 14 bucks. Q1 was excellent, q2 willl be better. If you do the math its 770 m just for wti impact
Remember they are UNHEDGED. IE MORE RISK MORE REWARD
THEY PAID OFF 4 B IN Q2 that tells me they made at least 4 b. If they did 3.3 b in q1 and wti impact is .8 that equals 4.1 b
Listening to the call and questions is useful and you pick up things you might not by just reading the package
you can do that here
https://edge.media-server.com/mmc/p/cgdftzdc
written transcript here
https://www.oxy.com/globalassets/docume ... script.pdf
If you like financials
I refer you too here, pages 6 thru 15
https://www.oxy.com/globalassets/docume ... esults.pdf
Warren Buffet does the same thing. After this call he said, "I agree with everything they are doing"
and thats when he started accumulating 20 % of the stock.
I personally think he wants the whole thing. I could be wrong but if it dips he will be adding which sets a floor to the name
The biggest risk is oil and NG craters. I just dont see that happening this year
The market is afraid of Covid and recession caused by interest rate hikes. The world needs energy and i don't see things changing in next 12 months
If Ukraine war ends oil will tank but I think that is a buying opportunity
I think WB converts his preferred into more shares and I think OXY wants to take out the other warrants.
The future curve says the traders expect lower prices from what? More supply or less demand? More supply isnt going to happen Less demand is the bigger risk IMHO
But the world needs it and you can see whats happening in Europe. They are paying the equivalent of 150 for ng. Last summer they were virtue signaling they wouldn't buy fracked US ng. they closed down nuclear, they closed down coal and nothing to replace it
I cant wait for earnings season.
All of our companies are going to look great
I summarize my email here
There is a ton of good info in the quarterly presentations.
This is 4 months old, wb comments
https://www.youtube.com/watch?v=FHjlBouhrNU
Note the price is about the same as it was 4 months ago
Regarding OXY
Last qtr is right here
https://www.oxy.com/investors/quarterly-earnings/
Go thru the presentation. Things that jumped off the page for me
https://www.oxy.com/globalassets/docume ... slides.pdf
slide 5
3.3 cash generated 3.3 b debt paid
slide 14 - 15 goals and priorities
They are following that road map
slide 20
every dollar up is worth 205 m ...wti is up from q1 by 14 bucks. Q1 was excellent, q2 willl be better. If you do the math its 770 m just for wti impact
Remember they are UNHEDGED. IE MORE RISK MORE REWARD
THEY PAID OFF 4 B IN Q2 that tells me they made at least 4 b. If they did 3.3 b in q1 and wti impact is .8 that equals 4.1 b
Listening to the call and questions is useful and you pick up things you might not by just reading the package
you can do that here
https://edge.media-server.com/mmc/p/cgdftzdc
written transcript here
https://www.oxy.com/globalassets/docume ... script.pdf
If you like financials
I refer you too here, pages 6 thru 15
https://www.oxy.com/globalassets/docume ... esults.pdf
Warren Buffet does the same thing. After this call he said, "I agree with everything they are doing"
and thats when he started accumulating 20 % of the stock.
I personally think he wants the whole thing. I could be wrong but if it dips he will be adding which sets a floor to the name
The biggest risk is oil and NG craters. I just dont see that happening this year
The market is afraid of Covid and recession caused by interest rate hikes. The world needs energy and i don't see things changing in next 12 months
If Ukraine war ends oil will tank but I think that is a buying opportunity
I think WB converts his preferred into more shares and I think OXY wants to take out the other warrants.
The future curve says the traders expect lower prices from what? More supply or less demand? More supply isnt going to happen Less demand is the bigger risk IMHO
But the world needs it and you can see whats happening in Europe. They are paying the equivalent of 150 for ng. Last summer they were virtue signaling they wouldn't buy fracked US ng. they closed down nuclear, they closed down coal and nothing to replace it
I cant wait for earnings season.
All of our companies are going to look great