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Occidental Petroleum Corporation (OXY)
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Canadian Natural Resources Limited (CNQ)
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Tourmaline Oil Corp. (TOU)
I understand Warren Buffett recently purchased OXY and I was wondering if you might share a rationale that would favor this stock versus CNQ, TOU,IMO or other CAD producers trading at approx. equally low 52 week levels, with higher mkt cap, dividends and dividend growth.
Thank you and all the best to you and your families in 2025.
Warren Buffet’s investment in OXY is largely due to its exposure to the Permian Basin, where OXY is one of the largest operators (along with CVX). This area is widely known in the industry as one of the most attractive oil assets in terms of the abundance of inventory.
In addition, OXY’s management demonstrated a commitment to return capital to shareholders rather than increasing capital investment or doing M&A. However, they just did one large transaction recently, which could explain why Buffet stopped adding to his position. We think the Canadian oil landscapes also possess some of the best cash cows in the industry; they are trading at lower valuations, too. We are comfortable holding Canadian oil names, given the discount in valuation and the healthy capital returns.