Good buy? Been getting hammered since Anadarko and the Buffet deal?

$39.80 right now....

Buy, buy, buy. Great dividend as well. Hold long term and let the dividends do your growing.

How much are you buying? $500, $5,000, or $50,000?

buy

Why do you assume OXY will cut the dividend? They will dump assets long before that happens. CEO is toast if they cut the divi!

Bc they can cover their dividend and the yield is north of 8%. They can handle about a 3-4% dividend if you factor in asset sales. Vicki really screwed up with her timing.

Cyp0111 said:

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Bc they can cover their dividend and the yield is north of 8%. They can handle about a 3-4% dividend if you factor in asset sales. Vicki really screwed up with her timing.

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Why does the yield percentage dictate that they have to cut it? Its yield is that high because the stock price has been cut in half. Price per share performance does not direct this decision, which is happy of the yield equation.

Not saying they do or don't have cash flow issues (don't think they do by the way), but that's not how you decide you need to cut it. They even raised their dividend over the summer.

They have a debt and pref equity problem. I'm using the yield to back into something more appropriate while not spending too much time. Oxy has issues with CF coverage

At this point my target price is low 30s to high 20s.... Lot of negativity around the Anadarko deal and Icahn.

If they cut the dividend the stock is going to get hammered again.

They're long land and debt/pref equity. They're going to continue to sell off conventional assets to fund a pure play shale asset which is not ideal.

If I could have Buffet's preferred, yes. That preferred payment and the demand to be cash flow positive is going to drag their stock price, imho.

Oxy Looking to Sell Assets in Colorado and Wyoming

Anyone know if this all of their acreage in the Rockies?

Berkshire Hathaway owns their ass right now.......

Do not buy.

Or..... take the advice of Internet strangers and go ahead and buy buy buy

The second Vicki added pref to get around shareholder approval this thing had problems. When you factor in the premium paid and lack of cash flow coverage for uses you have an issue. Oxy is now extremely dependent on commodity prices. I prefer an asset mix more in line with ConocoPhillips where you have stable conventional assets to provide cash flow generation to cover distributions and debt etc. with a % of portfolio allocated to shale to chase near cycle returns/cash flow.

I was impressed that they had as many deals lined up as they did, but WES taking a s*** and the price Buffet took on the pref... Oxy needs some things to go REALLY right. Hollub bet on being able to maneuver and now they, and she, need a lot of luck. Like a hot war in the ME.

They'll need to divest more than the legacy APC Rockies positions to keep the wolves at bay. Q4 into Q12020 could be a bloodbath for them.