Berkshire Hathaway Increases Occidental Petroleum Stake with $588.7 Million Purchase


Berkshire Hathaway (NYSE:BRK.B), led by Warren Buffett, has made substantial investments in Occidental Petroleum (NYSE:OXY) this week, acquiring nearly 10.5 million shares valued at approximately $588.7 million. The disclosure was filed with the U.S. Securities and Exchange Commission on Wednesday.

Following these recent purchases, Berkshire’s stake in Occidental Petroleum has reached around 27%. In addition to common shares, Berkshire holds preferred shares and warrants that allow it to acquire an additional 83.8 million Occidental shares for $4.7 billion, at $56.62 per share. These shares and warrants were part of a financial arrangement supporting Occidental’s acquisition of Anadarko Petroleum in 2019. If exercised, the warrants would increase Berkshire’s overall ownership to 33%.

Occidental Petroleum’s closing price on Wednesday was $57.22. Berkshire Hathaway had previously acquired a 25.8% stake in Occidental on October 25, amounting to approximately $14.4 billion.

Berkshire Hathaway, known for its diverse portfolio of businesses, includes energy operations, the BNSF railroad, Geico car insurance, and significant holdings in various stocks, with Apple being one of the notable investments in its portfolio. The recent moves in Occidental Petroleum suggest ongoing strategic investment decisions by Berkshire Hathaway in the energy sector.

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