Chevron’s Downstream segment engages in refining crude oil into petroleum products; marketing crude oil, refined products and lubricants; manufacturing and marketing of renewable fuels; transporting crude oil and refined products by pipeline, marine vessel, motor equipment and rail car; and manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. It is also involved in cash management and debt financing activities, insurance operations, real estate activities and technology businesses.
The company posted strong third-quarter results, driven by massive global demand for its oil and gas and rising production from its U.S. oilfields.
Chevron stock comes with a 3.10% dividend. Credit Suisse’s $202 target price compares with a $188.04 consensus target and the most recent closing share price of $185.61.
Over the past year, Berkshire Hathaway has been buying 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, 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.
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 Buffet will not acquire a controlling stake. The company is set to report the third-quarter results Tuesday after the close. The stock has been a huge winner for Buffett, as it has doubled in price this year.
Investors receive just a 0.70% dividend. Barclays has an $84 price target on Occidental Petroleum stock. The $75.45 consensus target is less than Monday’s closing print of $75.97, which was up close to 4% on the day.
The bottom line is that Berkshire Hathaway remains one of the best investment vehicles in the history of Wall Street. Any investors that are only down 10% on what has been one of the worst years for the market in the new millennium are pretty happy. Buffett’s buy-and-hold strategy has paid off in a big way, and the fact that the portfolio also contains top private holdings like Duracell, Dairy Queen, Lubrizol and more keeps investors coming back for more and likely always will.
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