Warren Buffett Buys £28M Worth of Occidental Petroleum Shares, Bumps Stake to 28.2% Ahead of Q4 Results
According to an 11th February Securities and Exchange Commission (SEC) filing, Berkshire Hathaway Chair Warren Buffett increased his stake in Occidental Petroleum (NYSE:OXY) by purchasing 763,017 company shares worth north of £28 million.
Buffett’s latest move comes ahead of Occidental Petroleum’s (NYSE:OXY) Q4 results, which will be released on 19th February.
The Oracle of Omaha bought the shares on 7th February for £37.5 ($46.81) a piece. Buffett has consistently invested in Occidental Petroleum (NYSE:OXY) for the last six consecutive quarters and currently owns over 264 million shares of the company or approximately 28.2% stake in the energy producer, worth over £9.72 billion.
Berkshire Hathaway Doesn’t Seek To Take Control Of The Company
Berkshire Hathaway has warrants to purchase another 83.85 million shares for £47.76 ($59.62) apiece, worth almost £4 billion, after assisting Occidental Petroleum (NYSE:OXY) in acquiring Anadarko Petroleum in 2019.
Despite the growing investments, Buffett has said Berkshire Hathaway does not intend to take control of the energy producer, which happens to be the sixth biggest holding in his portfolio with an exposure of 4.6%.
In 2023, Buffett praised Occidental Petroleum (NYSE:OXY) CEO Vicki Hollub, calling her “an extraordinary manager” and saying she is running the company the right way. He had said at the time that Berkshire Hathaway “will not be making any offer for control of Occidental, but we love the shares we have, and we may or may not own more in the future.”
Buffett’s disclosure earlier this week helped the oil & gas company escape a broader market downturn. The S&P 500 index slid by 0.27% on 12th February to 6051.97 as hotter-than-expected US inflation print heightened concerns that the Federal Reserve won’t trim interest rates anytime soon. Occidental Petroleum (NYSE:OXY) shares dropped by 1.6% to £38.28 ($47.83).
Buffett’s Continues to Purchase OXY Shares Despite A 30% Drop From Its Record-High
Buffett has mastered the principles of value investing, which involves buying great businesses at cheap valuations and holding them for the long term. His trading pattern for Occidental Petroleum (NYSE:OXY) showcases his strong belief in the company’s fundamentals.
Berkshire Hathaway continued to increase its stake in the Houston-based firm as share prices tanked over 30% from a record high in April 2024 as oil prices weakened.
Occidental pays a 1.8% dividend yield and has been investing in a carbon capture business. In June 2024, Berkshire’s renewable energy subsidiary BHE Renewable announced a joint venture with Occidental Petroleum’s TerraLithium platform to extract, produce, and commercialise lithium using patented technology for use in electric vehicles. Elsewhere, the Oxy Low Carbon Ventures subsidiary is developing next-gen technologies to grow the company while cost-effectively minimising emissions.
Disclaimer: Our digital media content is for informational purposes only and not investment advice. Please conduct your own analysis or seek professional advice before investing. Remember, investments are subject to market risks and past performance doesn’t indicate future returns.