Buffett’s Berkshire Hathaway buys another 5.99 million shares of Occidental

Sep 28 (Reuters) – Warren Buffett’s Berkshire Hathaway Inc (BRKa.N) bought an additional 5.99 million shares of Occidental Petroleum Corp (OXY.N), taking its stake to 20.9% after shares of the oil company have lost about a fifth of their value in less than a month.

The purchases were made between Sept. 26 and 28 and cost about $352 million, Berkshire said in a regulatory filing Wednesday.

Following the purchases, Berkshire now owns about 194.4 million shares of Occidental worth about $11.9 billion, based on Occidental’s Wednesday closing price of $61.41.

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Berkshire had been seven weeks since its last purchase of Occidental shares, pushing its stake above 20%.

The Houston-based oil company’s share price then rose, peaking at $77.11 on Aug. 29, before falling amid broader weakness in U.S. equity markets. Berkshire paid between 50 and 60 per share in purchases this week.

Occidental’s share price has more than doubled this year, benefiting from higher oil prices following Russia’s February 24 invasion of Ukraine.

Berkshire’s stake would allow Buffett’s Omaha, Nebraska-based conglomerate to report its proportionate share of Occidental’s earnings along with its own operating results, under the so-called equity method.

In August, a US energy regulator allowed Berkshire to buy up to 50% of Occidental’s common stock. Read more

Berkshire also owns $10 billion of Occidental preferred stock, which generates $800 million in annual dividends.

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Reporting by Jonathan Stempel in New York and Akriti Sharma in Bengaluru; Editing by Subhranshu Sahu

Our standards: The Thomson Reuters Trust Principles.

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