Berkshire Hathaway Increases Stake in Occidental Petroleum

Berkshire Hathaway (BRKa.N) has expanded its holdings in Occidental Petroleum (OXY.N) with the recent purchase of approximately 10.5 million shares, amounting to about $588.7 million, as per a filing with the U.S. Securities and Exchange Commission on Wednesday.

Acquisition Details and Ownership

• Total Stake:

  Berkshire's current holdings in Occidental stand at around 27%, including the recent share acquisitions.

• Preferred Shares and Warrants:

  Alongside the purchased shares, Berkshire holds preferred shares and warrants, allowing the acquisition of an additional 83.8 million Occidental shares for $4.7 billion, potentially increasing its total ownership to 33%.

• Origin of Shares and Warrants:

  These holdings were part of a financing deal assisting Occidental's 2019 acquisition of Anadarko Petroleum.

Financials and Market Position

• Occidental's Closing Price:

  On Wednesday, Occidental closed at $57.22.

• Previous Berkshire Investments:

  Berkshire Hathaway's prior purchases of Occidental shares occurred on October 25, acquiring a 25.8% stake valued at roughly $14.4 billion.

• Berkshire's Diverse Holdings:

  Berkshire Hathaway boasts ownership in numerous sectors, including energy operations, BNSF railroad, Geico car insurance, and a substantial portfolio of stocks, notably Apple (AAPL.O).

Conclusion

Berkshire Hathaway's strategic move to increase its holdings in Occidental Petroleum signals its confidence in the energy sector and the company's potential for growth. The acquisitions showcase Berkshire's continued interest in expanding its investment portfolio across various industries.