No. of Recommendations: 8
"OXY's enterprise value to proven reserves is now down to an attractive $15/barrel of oil equivalent (boe)."
Here are the enterprise values/proven reserves of some purchases of oil companies by other oil companies in the last few years. In all of these cases the buyers were basically just purchasing proven reserves.
Aug '19, Occidental buys Anadarko for $38/boe (OXY hugely overpaid)
Oct '23, Exxon buys Pioneer for $24/boe
Oct '23, CVX buys Hess for $41/boe (CVX hugely overpaid)
Nov '23, OXY buys CrownRock for $19/boe
Sept '24, Diamondback buys Endeavor for $17/boe
Nov '24, ConocoPhillips buys Marathon for $15/boe
By this measure (EV/proven reserves) OXY is currently attractively priced. Berkshire has purchased shares of OXY 36 times since 4Q2019, paying as high as $62/share.
https://stockcircle.com/portfolio/warren-buffett/o... 