Is This Warren Buffett Energy Stock a Screaming Buy Now?
The world runs on energy. Most of our energy comes from petroleum-based products such as oil and natural gas. Historically, the United States was a major oil producer but saw production levels fall off in the 1990s and early 2000s, substituting foreign sources from places such as Saudi Arabia. But in the last 10 years, oil production in the United States has soared and recently hit an all-time high. How did this happen? One word: fracking.
The innovative drilling method allowed energy producers to pull resources from previously unheard-of drilling locations, leading to booming production in places such as the Permian Basin. One company that benefited greatly from the fracking boom is Occidental Petroleum (NYSE: OXY). The long-standing energy company focused its sights on the U.S. market and has seen its profits boom in recent years with oil and natural gas prices rising.
In the last three years, shares of Occidental Petroleum produced a 518% total return for shareholders, trouncing the S 500's 30% total return over that same time period. Major shareholder Warren Buffett applauded the company's capital allocation strategy, buying even more shares in recent quarters.
Source Fool.com
Occidental Petroleum Corp. Stock
With 36 Buy predictions and 2 Sell predictions Occidental Petroleum Corp. is one of the favorites of our community.
With a target price of 65 € there is a slightly positive potential of 15.82% for Occidental Petroleum Corp. compared to the current price of 56.12 €.
