Berkshire Hathaway Increases Stake in Occidental Petroleum

Berkshire Hathaway has recently increased its stake in Occidental Petroleum, marking its first purchase since late June. The company acquired 3.9 million shares, raising its stake to a total of 228 million shares valued at $14.5 billion.

According to a Form 4 filing with the Securities and Exchange Commission, Berkshire Hathaway (BRK/A) made the stock purchase from Monday to Wednesday. As a result, the company now holds a 25.8% stake in Occidental Petroleum (OXY), whose shares experienced a 1.2% increase on Wednesday, reaching $63.47.

Berkshire Hathaway paid an average price of close to $63 per share for this latest acquisition.

Furthermore, the filing revealed that Occidental has repaid approximately $700 million of its 8% preferred stock held by Berkshire since late June. Currently, Berkshire holds $8.5 billion of the preferred stock, which Occidental intends to pay off due to its high yield.

Warren Buffett, CEO of Berkshire Hathaway, stated at the company’s annual meeting in May that they do not seek control of Occidental. However, Berkshire has been steadily accumulating shares of the energy company since early 2022, and it has regulatory approval to acquire as much as 50% of Occidental.

In addition to owning common stock and preferred shares in Occidental, Berkshire also possesses nearly 84 million warrants to buy the company’s common stock at a price slightly below $60 per share.

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