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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (74508)	12/11/2023 3:53:10 PM
From: Sean Collett	Read Replies (1) \| Respond to of 78530

Seems to me Warren is of the belief oil will be of big value in the coming years and is positioning as such with OXY. Despite him not financing directly he's still part of this given Berkshire share size. Aside from the C19 blowup I would say this has worked for OXY before when they bought Anadarko. Debt ballooned from $10B in 2018 to $40B in 2019 and as of their last 10-Q debt is now at $20B. So they have been able to make these debt purchases and execute on deleveraging pretty quick. They already announced the plan to divest around $4.5B in assets over the next year. This new purchase gives them 10K acres of oil-producing land with 1,700 being undeveloped. From what I read 750 of these sites they bought have a oil break even price of $40/b and 1,250 with a break even at $60/B. Risky of course if tensions continue to rise and something drives oil prices lower, but as Jeff Goldblum said in Jurassic Park "Warren, uh, finds a way"...or something close to that :) -Sean