Occidental Vs. Chevron: Buffett Bought Both, But Which Is Better For You?
Summary
- Occidental and Chevron are two excellent but very different oil companies. Chevron is an excellent dividend/total return stock, while OXY should provide capital gains as well.
- OXY is somewhat misdescribed as an integrated oil company; it's actually an odd but highly efficient exploration and production company with no downstream business but a midstream chemical unit.
- OXY is best understood by studying its long-term debt levels and pulling from cash flow numbers the exact times of acquiring and repaying debt.
- CEO Vicki Hollub seems to fully grasp the trick of buying assets with debt and letting their cash flows reduce the cost to near zero.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of OXY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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