In A Move That Will Likely Boost Occidental Petroleum, Warren Buffett's Berkshire Hathaway Is Buying More Shares

March 8, 2023

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Berkshire Hathaway, Warren Buffett's company, recently bought more shares of Occidental Petroleum, which it already owns for a substantial amount, according to a regulatory filing that was released Tuesday evening.

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In a variety of trades on Friday, Monday, and Tuesday, the Omaha, Nebraska-based conglomerate bought nearly 5.8 million shares of the oil company at prices ranging from $59.8 to $61.9, indicating the price range in which it paid for these shares.

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This latest purchase, which totals more than $350 million, marks the first time that the "Oracle of Omaha" has increased his bet since September. It is estimated that Berkshire owns 200.2 million shares of Occidental, which are worth $12.2 billion based on Tuesday's closing price of $60.85. This has resulted in Berkshire owning 22.2% of Occidental, up from 21.4% the previous year.

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After a stellar year in 2022, the stock of Occidental, which is now one of Berkshire Hathaway's top 10 holdings, dropped about 3% this year after a stellar year in 2022. It is no secret that energy stocks performed best last year, with their price more than doubling in a year.

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Occidental CEO Vicki Hollub has revealed in an interview with Trade Algo that she met with the 92-year-old investor "just a few days ago." She said in an interview that the two discussed the oil and gas industry, as well as the technology involved in the industry.

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Occidental Oil & Gas, which is based in Houston, has received regulatory approval for Berkshire to purchase up to 50% of the company, causing speculation that it may eventually buy the whole company.

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Berkshire also owns $10 billion of the preferred stock of Occidental, and it has warrants to buy another 83.9 million shares of the common stock for $5 billion, or $59.62 a share. It is understood that Occidental obtained the warrants as part of the deal that helped finance the acquisition of Anadarko by the company in the year 2019.

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