Warren Buffett’s Berkshire Hathaway now owns just over 25% of Occidental Petroleum after recent takeovers.
Buffett’s conglomerate acquired an additional 2.1 million shares this week, according to SEC filings.
Berkshire’s total stake in Occidental is worth about $13 billion, invested in 224 million shares.
Warren Buffett’s Berkshire Hathaway has just acquired more shares of Occidental Petroleum, bringing the legendary investor’s stake in the oil company to just over 25%.
Buffett’s conglomerate bought an additional 2.1 million shares of Occidental last week as the stock traded at $57.89, worth a total of $123 million, according to a recent Securities and Exchange Commission filing.
Berkshire now owns 224 million shares of the oil producer worth $13 billion. That’s just over a quarter of Occidental’s total value, with a total market capitalization of $52.56 billion.
Shares of Occidental traded at $58.52 on Friday, as the stock fell 4% from levels at the start of the year. Meanwhile, Berkshire Hathaway Class A shares traded around $515,550, with the stock up 9% year-to-date. Class B shares were trading at $339.59.
Buffett has expressed his optimism on Occidental Petroleum, grabbing big chunks of the stock over the past year as oil and natural gas prices soared following the invasion of Ukraine by Russia.
And although Buffett has said he has no interest in taking over Occidental, Berkshire won approval from regulators to potentially own up to 50% of the company last August.
Energy prices, meanwhile, have fallen from their highs of last summer, but analysts said prices are likely to surge again later in the year, especially if the economic reopening of China leads to a sharp increase in demand for oil.
Recovering demand in China could push Brent crude, the international benchmark, near $100 a barrel, though China has had a disappointing reopening so far since rolling back its zero COVID policies. Real estate and industrial activity in the country has slowed significantly, and a massive trade surplus of $88 billion at the start of 2023 suggests domestic demand is weak, experts say.
On Friday, West Texas Intermediate crude was trading around $70.61 a barrel, while Brent crude was trading around $75.17 a barrel.
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