Smart investors appear to agree: three energy gurus led by Warren Buffett himself have chosen to follow the Oracle's time-tested market wisdom of being fearful when others are greedy, and greedy when others are fearful. Over the last few weeks, Buffett, Jerry Jones and Harold Hamm--three of the richest and most successful businessmen in the U.S.-- have doubled down on their oil and gas bets, using the selloff as a buying opportunity.
Between June 17 and June 22, Buffett bought 9 million shares of Occidental Petroleum (NYSE:OXY) for around $56 per share, which compares favorably with his previous purchase of OXY in the $50-58 range. In effect, Buffett now owns 25% of OXY, counting his warrants and total shares purchased. The Oracle of Omaha also owns a $20-billion stake in Chevron Corp. (NYSE:CVX). Warren Buffett is ranked the world's 7th richest person with a net worth of $96.9B. Unfortunately, Buffet has seen his net worth shrink by $13.4B in the year-to-date, mainly due to the poor performance of his other U.S. stock investments thanks to a wide market selloff.
Several weeks ago, the Wall Street Journal featured Dallas Cowboys owner Jerry Jones in a story detailing how the billionaire grew his $1.1B investment in natural gas producer Comstock Resources Inc. (NYSE:CRK) into $2.7B. Interestingly, Jones bought control of Comstock Resources at the depths of the gas bust before natural gas prices made a dramatic U-turn. Jerry Jones is #182 on the Bloomberg Billionaires Index with a net worth of $10.7B, marking a nearly 15% increase.
Meanwhile, Harold Hamm, majority owner of shale exploration giant Continental Resources (NYSE:CLR), has gone on an all-out war to buy back the company's minority stake. Earlier this month, Hamm offered to buy the remainder of the shale driller he and his family don't already own for $4.3 billion, or $70/share, claiming that his company is grossly undervalued. The Hamm Family collectively owns 83% of the total outstanding shares of common stock.
Some analysis including city index expected oil could drop as lower as US45/barrel meanwhile JP Morgan firmly believed that global oil prices could climb to a "stratospheric" $380/bbl if G7 nations succeed in imposing caps on the price of Russian oil and prompt Vladimir Putin to inflict retaliatory production cuts.
According to JPM, Russia's robust fiscal position means the country can afford to slash crude output by as much as 5M bbl/day without excessively damaging its economy. However, such a drastic reduction would be bad news for oil consumers as it would push Brent crude prices to $380/bbl.
Remember last year JP Morgan is the one who predicted oil could hit usd 100/bbl....
Today Goldman Sachs is bullish on oil price and believed oil can surpass usd140/bbl....
Oil prices may be dropping, but oil is still headed for $140 per barrel, Goldman Sachs told CNBC on Thursday, and could even hit $140 in the face of a recession.
Armada is so undervalued now just base on its net operating cash flow alone , especially after it stopped bleeding by selling off the OSVs. Market sentiment swings to the wrong side too much on Armada.
Oil price dropping meanwhile buffet is building up his equity in O&G ....
Warren Buffett’s Berkshire Hathaway has bought another 4.3 million shares in Occidental Petroleum, bringing its total stake in the company to 19.2 percent, Reuters has reported, citing an SEC filing by Buffett’s investment vehicle.
The stock purchase is the latest in a series that has seen Berkshire Hathaway increase its interest in Oxy from less than 14 percent to close to 20 percent. This has prompted talk that the investment firm might be planning to take over the oil major.
Too bad. Very happy see the price moving up but unfortunately oil price plunged down. Tomorrow might drop again, follow the oil market sentiment..aisayman!
if company continue to pare down his debt via positive cashflow generate from his operating, his share price will reflect his fundamental value at the end.
FYI, But not final verdict, still not sure. sometimes cannot trust this bankers.
KUALA LUMPUR: CGS-CIMB Research is positive on Yinson Holdings Bhd's probability of securing either Italy's Eni's floating production storage offload (FPSO) Agogo project or BP's FPSO contract.
The firm said the bid for the time charter contract for Eni's FPSO Agogo, offshore Angola project is nearing conclusion, as Yinson is expecting Eni to award the contract either in the third quarter (Q3) or Q4.
Yinson is in the running together with MISC Bhd and Bumi Armada Bhd.
MISC recently said that it is no longer particularly keen on pursuing Agogo, preferring instead to focus its attention on TotalEnergies' FPSO Cameia project.
"This means that the FPSO Agogo time charter contract is now a two-horse race between Yinson and Bumi Armada.
"Bumi Armada recently undertook a significant recruitment exercise to build project execution capacity, while Yinson is likely to move the project team on the nearly completed FPSO Anna Nery project to the Agogo project, should it win the award," it stated.
Yinson is also keen to secure the FPSO contract for BP's Block 31 SE-PAJ development offshore Angola, and BP is interested in using the FPSO Nganhurra as a redeployment candidate.
It is viewed that Yinson may have the edge over its competitors because the latter has a purchase option for the Nganhurra that expires at the end of 2023.
"If Yinson does not win the FPSO Agogo contract (it is asking for very high charter rates), the BP project can be a fallback.
"If Yinson wins Agogo and the BP project, it will wait for the Atlanta to be delivered in mid-2024 before it will start engineering, procurement, construction, installation, and commissioning (EPCIC) work for the BP project in order not to overstretch its project execution capabilities," it said.
Yinson's plan to list its FPSO holding company by the end of 2022 is unlikely to materialise due to poor market conditions and because the restructuring of the FPSO assets is being held back by slow client approvals.
Yinson will fund the Agogo or BP projects by selling equity stakes in existing FPSO assets. However, a second rights issue is not under consideration.
The firm maintained its 'Add' recommendation on the company with a target price of RM3.23.
Still awaiting the following good news (the sooner, the better!):
1) New contract secured in Angola (Agogo field operated by Eni) 2) Finalisation of the Mumbai Port FSRU project contract 3) Sale of FPSO Armada Claire 4) Sail away of FPSO Armada Sterling V
These need to happen for the share price to move up. Otherwise, there will be no reason for it to move. Of course may have other good (maybe even bad) news that are unforseen, but these 4 are the key expected things to look out for in the short term.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
paktua73
18,262 posts
Posted by paktua73 > 2022-07-07 11:41 |
Post removed.Why?