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 2.7% in pre-market trading Wednesday, while Occidental Petroleum rose
Select Energy Sector SPDR ETF
(XLE) rose 0.1%.
Standard & Poor’s 500
Futures have changed little.
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.
In addition to holding Occidental, Berkshire has approximately 84 million warrants to purchase Occidental shares that are exercisable for less than $60 a share and $10 billion of Occidental preferred stock that pays 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]
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