Berkshire Hathaway bought nearly 6 million shares of Occidental Petroleum in recent days, bringing its stake in the energy major to 200.2 million shares worth $12.2 billion, according to a filing late Tuesday.
The purchases, which took place on Friday, Monday and Tuesday, were made at prices ranging from about $59 to $62 per share and are Berkshire’s first purchases since the end of the third quarter. The value of the purchases amounts to about 360 million dollars.
“Overall,…
Berkshire Hathaway bought nearly 6 million shares of Occidental Petroleum in recent days, bringing its stake in the energy major to 200.2 million shares worth $12.2 billion, according to a filing late Tuesday.
The purchases, which took place on Friday, Monday and Tuesday, were made at prices ranging from about $59 to $62 per share and are Berkshire’s first purchases since the end of the third quarter. The value of the purchases amounts to about 360 million dollars.
More than a little. Occidental Petroleum shares are up 2.7% in premarket trading Wednesday, while
Energy Select Sector SPDR ETF
(XLE) has risen 0.1 per cent.
S&P 500
the future has changed a little.
Warren Buffett, CEO of Berkshire Hathaway, likes energy companies. Berkshire also owns about $27 billion in Chevron stock (ticker: CVX).
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Berkshire Hathaway ( BRK.A , BRK.B ) now owns about 22.1% of Occidental Petroleum ( OXY ), whose shares fell 1.4% to $60.85 on Tuesday. As the holder of more than 10% of Occidental, Berkshire must disclose all purchases or sales within two business days to the Securities and Exchange Commission in a Form 4 filing.
In addition to the Occidental stock holdings, Berkshire owns nearly 84 million warrants to buy Occidental shares exercisable at just under $60 per share. stock and $10 billion of Occidental preferred stock with a dividend rate of 8%.
The Berkshire purchases indicate that the drop in Occidental’s share price, along with energy prices in recent weeks, has lured Buffett.
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Berkshire began buying Occidental shares in 2022 and Barron’s estimates that Berkshire paid an average price in the low $50s.
Write to Andrew Bary at andrew.bary@barrons.com