In recent months, billionaire investors Warren Buffett and Carlos Slim have been making significant investments in the energy sector, indicating a renewed interest in the industry. Warren Buffett’s company Berkshire Hathaway poured $434.8 million into Occidental Petroleum Corporation, while Carlos Slim’s Control Empresarial de Capitales invested $75.5 million in PBF Energy Inc.
The attractiveness of energy stocks is attributed to compelling valuation opportunities amidst recent market corrections. With expectations of sustained oil price support from OPEC and strong demand for natural gas due to the growing electricity needs of the AI industry, energy companies are poised to benefit.
Occidental Petroleum, with a market cap of $55.6 billion, is a global energy company with assets in the United States, the Middle East, and North Africa. The company’s shares have shown positive growth, and it announced a quarterly dividend of $0.22 per share. Occidental’s Q1 earnings exceeded expectations, with strong operational performance and free cash flow generation.
PBF Energy, valued at $5.3 billion, is one of the largest independent petroleum refiners in the U.S. The company paid shareholders a quarterly dividend of $0.25 per share and repurchased shares to enhance shareholder returns. PBF Energy’s Q1 earnings also surpassed estimates, with a focus on safe and reliable operations.
Analysts expect profit growth for both Occidental Petroleum and PBF Energy in the coming years. Investors are attracted to these companies for their commitment to shareholder value, strategic moves to enhance cash flow, and potential benefits from geopolitical tensions.
Overall, both Occidental Petroleum and PBF Energy have a consensus “Moderate Buy” rating from analysts, with potential upside in their stock prices. Warren Buffett and Carlos Slim’s investments reflect confidence in the energy sector’s future prospects.