Warren Buffett's Berkshire buys more Occidental after 30% sell-off from record high
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Warren Buffett's Berkshire Hathaway purchased more shares of Occidental Petroleum after the oil and gas producer tumbled more than 30% from its record high.
The Omaha, Nebraska-based conglomerate scooped up 763,017 shares of the Houston-based energy company on Friday for $35.7 million, according to a regulatory filing. Berkshire is Occidental's biggest investor, holding 28.2% stake.
Shares of Occidental have fallen nearly 32% from an all-time high reached last April. The stock dropped more than 17% in 2024 as oil prices weakened.
In late December, Berkshire purchased 8.9 million Occidental shares during a broad market pullback. Occidental remains Berkshire's sixth-largest equity holding.
Buffett has made clear he won't take full control of the oil company, founded by legendary oilman Armand Hammer. There had been speculation of a takeover after Berkshire received regulatory approval to buy as much as a 50% stake.
The «Oracle of Omaha» previously said he started buying Occidental after reading a transcript of the oil company's earnings conference call. Occidental also pays a 1.8% dividend yield and has been investing in a carbon capture business.
Berkshire also owns $10 billion of Occidental preferred stock and has warrants to buy another 83.9 million common shares for $5 billion, or $59.62 each. The warrants were obtained as part of Berkshire's 2019 deal that helped finance Occidental's purchase of Anadarko Petroleum.
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