Warren Buffett’s Berkshire buys more Occidental after 30% sell-off from record high

Warren Buffett’s Berkshire buys more Occidental after 30% sell-off from record high


In this article

  • OXY
  • BRK.A
Warren Buffett speaks during the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska, on May 4, 2024.
CNBC

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 a 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.

Stock Chart IconStock chart icon

hide content
Occidental shares over the past year

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.

Don’t miss these insights from CNBC PRO

  • Goldman tells clients these stocks are most at risk from Trump’s tariffs
  • Here are the stocks that will be hurt the most from Trump’s new tariffs
  • Tom Lee says buy this tariff dip in stocks, but bitcoin is headed for much more short-term pain
  • IBM is the best Dow stock over the past 3 months, but one CIO says its AI message is disappointing



Source

Fed considering changes to what constitutes a ‘well-managed’ bank
Finance

Fed considering changes to what constitutes a ‘well-managed’ bank

The Federal Reserve building is seen before the Federal Reserve board is expected to signal plans to raise interest rates in March as it focuses on fighting inflation, in Washington, D.C., on Jan. 26, 2022. Joshua Roberts | Reuters The Federal Reserve is taking another step toward easing regulation for big financial institutions, this time […]

Read More
Stocks making the biggest moves midday: MP Materials, Delta Air Lines, WK Kellogg, Hertz & more
Finance

Stocks making the biggest moves midday: MP Materials, Delta Air Lines, WK Kellogg, Hertz & more

Check out the companies making the biggest moves midday: MP Materials — The rare earth miner soared more than 47% after the company announced the Defense Department would buy $400 million in preferred stock . “We remain a thriving public company. We now have a great new partner in our economically largest shareholder, DoD, but […]

Read More
‘YOLO’-buying EVs: As ,500 tax credit ends, consumers may rush to cash in. Here’s how to get a good deal
Finance

‘YOLO’-buying EVs: As $7,500 tax credit ends, consumers may rush to cash in. Here’s how to get a good deal

Key Points President Donald Trump’s so-called “big beautiful bill” ends federal EV tax credits after Sept. 30. Consumers may rush to buy or lease an electric vehicle before that deadline to get a tax break. Tesla said now is the time to “YOLO” purchase an EV, referencing the fast-approaching deadline. Source

Read More