Share of density ,Oxy 1.43%, Has been immersed in the last one year. They have fallen from a peak More than The share of $ 60 is less than $ 50. This is largely due to a fall in oil prices, which has fallen from more than $ 80 per barrel to a level above $ 70 per barrel.

There is a look at many reasons here why you should buy Oil stock While it is Below $ 50 per barrel.

It’s below the purchase of buffett price

Warren Buffett Berkshire Hathaway Oxidantle shares have been snatching in recent years. Buffett company 264.9 million shares (26.9% of oxidantl Outstanding shareThose shares are currently over $ 12.6 billion. It is 4.4% of Berkshire’s investment portfolio, making oxidantle the sixth largest place.

Barkshire Cost base Its condition is in the low $ 50s. Buffett’s company has imposed capital on opportunities to add to its position when the oil stock is immersed below $ 50 per share in the last one year.

In addition to buying shares on the open market, Buffett’s company holds Warrant To buy another $ 5 billion of $ 5 billion of $ 59.62. His company achieved the warrants when he made his $ 10 billion preferred stock Investment in Occidental in 2019 to support the purchase of anadarko petroleum.

Promote the upcoming $ 1.5 billion non-oil

oil prices Take Chief Effect Cash flow and stock price of oxidantal petroleum because its oil and gas business is its largest moneymaker. While its fossil fuel business will remain its main advantage driver, the company hopes that its free cash flow will improve about $ 1.5 billion in the next few years, which is unrelated to oil prices.

Oxidantal petroleum is expected to reach a divine point next year He will promote Its free cash flow in 2026 is $ 1 billion. It estimates that its chemical business (Oxicam) will provide more than $ 450 million aged free cash flow in 2026 in 2026, including its battleground plants and its battleground plants and Scrutinize Related capital spent. Meanwhile, the company hopes to capture about $ 450 million in additional earnings in its midstream business as the heritage contract stops and it reduces capital expenses in that segment. Finally, Occidental is expected Loan repayment strategy In 2026, the annual interest expenditure will distribute more than $ 135 million in savings. The company sees a total free-cash-flow improvement from these catalysts, which grows up to $ 1.5 billion in 2027.

This will be meaningful improvement Provide it A high foundation of stable base cash flow. Oxidantl can use the incremental that can use additional free cash flow to increase shareholder value through dividend growth, reproach (general share and Berkshire’s favorite stock), and additional loan repayment.

Additional reverse catalyst

At the top of visible growth from non-oil businesses of oxidantls, it has additional reverse capacity from high oil prices. If the current conflict between the Middle East or Russia and Ukraine reaches the point where the major energy infrastructure is destroyed, the oil prices may increase. Similarly, an unexpected supply issue can also increase the price of raw price (due to potentially a natural disaster or human decision).

Meanwhile, Occidental is also making a construction Carbon capture and storage A business that can start paying from next year. It is expected to start its early direct air capture (DAC) unit, stratos, this year and is expected to be at full capacity by mid -2026. It is commercializing the project by selling it Carbon credit Demand companies to destroy their operations. Achieving and running this project will demonstrate the company’s ability to commercialize this technology, which Oxidantl believes that there may be a big moneymaker in the long term. It will prove in the market that the company can continue to develop DAC projects, Which will increase Its long -term development possibilities.

Oxidantl looks like purchases below $ 50

Dip in the stock price of oxidantl had to trade it below the purchase level of Buffett. At its top, the company has several upside down catalysts, many of which do not rely on improvement in oil prices. Given all that, a dip of below $ 50 is worth buying for those looking for low risk risk in the market.