Berkshire Hathaway has 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 Fridays, Mondays and Tuesdays, took place at prices ranging from about $59 to $62 a share and are Berkshire’s first purchases since the end of the third quarter. The value of the purchases is approximately $360 million.
“Total,…
Berkshire Hathaway has 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 Fridays, Mondays and Tuesdays, took place at prices ranging from about $59 to $62 a share and are Berkshire’s first purchases since the end of the third quarter. The value of the purchases is approximately $360 million.
“Overall, we expect OXY to have a slightly positive reaction versus its peers tomorrow,” analyst Leo Mariani at Roth MKM wrote.
a little more. Occidental Petroleum rose 0.5% on Wednesday, while Occidental Petroleum’s share price rose
Select Energy Sector SPDR ETF
(XLE) decreased by 1.8%. the
Standard & Poor’s 500
decreased by 0.1%.
Warren Buffett, CEO of Berkshire Hathaway, loves energy companies. Berkshire also owns about $27 billion in Chevron stock (ticker symbol: CVX).
Announcement – scroll to continue
Berkshire Hathaway (BRK.A, BRK.B) now owns approximately 22.1% of shares in Occidental Petroleum (OXY), whose shares fell 1.4% Tuesday to $60.85. As an owner of more than 10% of Occidental, Berkshire must disclose any purchases or sales within two business days to the Securities and Exchange Commission in the form of a 4 filing. The new purchases also raise questions about Berkshire’s intentions: Does it aim to buy Occidental outright at some point in the future?
In addition to holding Occidental, Berkshire has approximately 84 million warrants for the purchase of Occidental shares that are exercisable at less than $60 per share and $10 billion of Occidental preferred shares that pay an 8% dividend rate.
The Berkshire purchases suggest that the decline in Occidental’s stock price along with energy prices in recent weeks has enticed Buffett.
Announcement – scroll to continue
Berkshire will begin buying Occidental shares in 2022 and Barron It is estimated that Berkshire paid the average price in US$50.
Write to Andrew Bary at [email protected]