Berkshire Hathaway Now Owns 20% Stake In This Oil & Gas Conglomerate

Berkshire Hathaway Now Owns 20% Stake In This Oil & Gas Conglomerate
  • Warren Buffett's Berkshire Hathaway Inc (NYSE: BRK-A) has purchased additional shares in Occidental Petroleum Corporation OXY, surpassing the 20% stake.
  • In an SEC regulatory filing, Berkshire said it paid about $391 million for nearly 6.7 million Occidental shares between August 4 and August 8.
  • The purchases gave Berkshire 188.4 million Occidental shares, or 20.2% of reported shares outstanding, worth $11.3 billion.
  • Reuters said that a 20% stake would let Berkshire report its proportionate share of Occidental's earnings with operating results through the equity accounting method.
  • Buffett's company also owns $10 billion of Occidental preferred stock.
  • According to the Reuters report, some analysts have speculated that Berkshire could eventually bid for all of Occidental.
  • Occidental share price has more than doubled this year, benefiting from rising oil prices following Russia's invasion of Ukraine.
  • In July, Berkshire Hathaway spent over $100 million on Occidental Petroleum shares, raising its stake in the energy company to 19.4%.
  • Price Action: OXY shares are up 2.33% at $61.44 during the premarket session on the last check Tuesday.

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