Berkshire Just Bought More Occidental Stock. Here's How Much Buffett Owns Now. | OXY Message Board Posts


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Msg  425 of 438  at  3/28/2023 12:18:04 PM  by

jerrykrause


Berkshire Just Bought More Occidental Stock. Here's How Much Buffett Owns Now.

 

Berkshire Just Bought More Occidental Stock. Here's How Much Buffett Owns Now.

 
 

Berkshire Hathaway bought more stock in Occidental Petroleum in recent days, purchasing 3.7 million shares of the energy company and bringing its ownership to 211.7 million shares, a 23.5% stake, according to a filing late Monday.

Berkshire Hathaway (ticker: BRK.A, BRK.B) CEO Warren Buffett continues to take advantage of the weakness in oil and natural-gas prices to purchase stock in Occidental Petroleum (OXY) below $60 a share.

Berkshire paid about $218 million for its latest round of purchases, and it now holds a stake worth $12.6 billion after Occidental stock gained 2.5% on Monday to $59.65. Berkshire paid in a range of $58 to $59 for the 3.7 million shares on Thursday and Monday.

Occidental shares were up an additional 2% in premarket trading Tuesday as TD Cowen analysts upgraded the stock to Outperform from Market Perform. They give it a price target of $70.

Occidental "stands out as a name with resilient assets that continue to benefit from productivity improvements and attractive reserve bookings," the Cowen analysts said.

Berkshire has stepped up its Occidental stock purchases this month after being dormant since Sept. 30. Berkshire bought about eight million shares from March 13 to March 15 and another six million shares earlier in the month. The purchase illustrates Buffett's patience in building stakes in companies. Berkshire's first purchases were disclosed over a year ago.

As a holder of more than 10% of the company, Berkshire must disclose purchases within two business days.

The latest buys will fuel ongoing speculation about how large an Occidental stake will be purchased by Berkshire and whether Buffett wants the whole company.

It likely would cost Berkshire more than $50 billion to buy the rest of Occidental, assuming a price of about $75 a share. Barron's estimates that Berkshire has paid an average price in the low $50s for the Occidental stake.

In addition to the equity holding, Berkshire owns nearly 84 million warrants to buy Occidental stock that can be exercised at just under $60 a share and $10 billion of Occidental preferred stock paying an 8% dividend rate.

Buffett likes energy companies. Berkshire also owns around $27 billion in Chevron stock (CVX).

 


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