Warren Buffett's Berkshire Boosts Stake In North America's Leading Oil & Gas Company, Occidental Petroleum, By 23.6 Percent

Warren Buffett's Berkshire Expands Its Stake By 23.6 Percent In Occidental Petroleum

Warren Buffett's Berkshire Hathaway raised its share in Occidental petroleum by around 23.6 percent as it bought almost 3.7 million extra shares making a total expense of around USD 216 million. Buffett's firm started to buy major amounts of Occidental stocks last year near the same period of Russia's invasion of Ukraine and has expended over USD 1 billion this month.

Berkshire revealed the investments, accounting for around USD 216 million that took place on March 23 and 27, in a U.S. Securities and Exchange Commission filing.

The investment company expended USD 216 million for the stakes that were purchased separately in two days.

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The expenditure comes after a string of three stock purchases accounting for USD 350 million earlier in March, that drove the stake of Berkshire in oxy to more than 20 percent, and then one more, worth USD 466.68 million, that was made in mid-month.

Currently, it is the owner of around 211.7 million Occidental shares valued at USD 12.6 billion on the basis of the oil firm's closing price of USD 59.65.

In August, Berkshire secured the permit for buying up to 50 percent of Occidental's common stock from the U.S. Federal Energy Regulatory Commission.

It is also an owner of Occidental preferred stock accounting for USD 10 billion with an 8 percent dividend and additional warrants for purchasing an extra USD 5 billion of common shares priced at USD 59.62 each.

Berkshire, the largest stakeholder of Occidental as well as a few analysts and investors, have guessed that it may even purchase the Houston-based company entirely.

Buffett, aged 92, also hopes to form a significant acquisition for his Omaha, Nebraska-based conglomerate that comprises a dozen other businesses, including Geico car insurance and the BILLIONSF railroad.

Berkshire acquired a 22.6 percent stake in BILLIONSF prior to the payment of USD 26.5 billion for the rest in 2010.

Previous Investments

Three years ago, Anadarko's takeover by Oxy was funded by Berkshire Hathaway with USD 10 billion in equity. The deal included the retrieval of stock purchase warrants by the investment firm, which could witness it acquire 20 percent or more in Occidental.

Oxy made an investment of USD 55 billion in 2019 to purchase Anadarko, which made it one of the most significant M&A deals in energy during the last few years. In that, it outdid Chevron, which announced a bid for the energy company earlier.

Warren Buffett

Warren Edward Buffett, with a total of USD 104 billion in net worth as of March 2023, is an American businessman, investor and philanthropist. He stands at the fifth position among the richest people worldwide. At present, he is the chairman and CEO of Berkshire Hathaway. Buffett is among the most well-known and major investors worldwide owing to his enormous investment knowledge.

Berkshire Hathaway

Berkshire Hathaway is a holding company based in America that works like an investment vehicle for businessmen. During the 21st century, it was among the top companies based on the margins in the United States of America. The firm was recognised for its high-priced stock (around USD 350,000 for one Class A share in 2020) and its small staff size of only 25 people.

Occidental Petroleum

Occidental Petroleum Corporation or popularly known as Oxy, is an American firm that has major operations for exploring hydrocarbon in the United States and the Middle East, along with fuel oil production in the United States, Canada, and Chile. The company located in Houston stood at the 183rd spot on the 2021 Fortune 500 on the basis of its revenues in 2020 as well as the 670th position on the 2021 Forbes Global 2000.

According to the Procurement Resource article, Warren Buffett's Berkshire Hathaway made a further investment to expand its stake in Occidental Petroleum by 23.6 Percent. The company bought almost 3.7 million extra shares for nearly USD 216 million.

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The businessman started purchasing the company's stocks last year, near the same period as Russia's invasion of Ukraine. The expense followed after a series of three other stock purchases, USD 350 million earlier in March with another USD 466.68 million, made in the middle of the month.