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Warren Buffett’s Berkshire Hathaway has bought more shares in Occidental Petroleum, taking advantage of falling oil prices amid a spreading banking crisis. The Omaha, Nebraska-based conglomerate bought 7.9 million shares in multiple trades on Monday, Tuesday and Wednesday, a new regulators report showed. The median purchase price was $59.17 for a total of $466.7 million. This brings the total number of Berkshire shares in Occidental to 208 million, representing 23.1% of the oil giant’s outstanding shares. Energy stocks are down about 5% this week as oil prices were hit by fears of a slowdown in global economic growth. West Texas Intermediate crude futures fell more than 5% to close at $67.61 a barrel on Wednesday, hitting their lowest level since December 2021. WTI continued to fall on Thursday, dropping to $66.44 a barrel. This month alone, Berkshire doubled its already large stake in Occidental. The Oracle of Omaha purchased 5.8 million shares for $352.5 million on March 3, 4 and 7. Earlier this month, Occidental CEO Vicki Hollub told CNBC that she met with Buffett to discuss the oil and gas industry and related technologies. in that. In August, Berkshire received regulatory approval to buy up to 50% of the shares, sparking speculation that it could eventually buy all of Occidental in Houston. Berkshire also owns $10 billion of preferred shares in Occidental and has warrants to buy another 83.9 million shares of common stock for $5 billion, or $59.62 each. The warrants were obtained as part of a company deal in 2019 that helped finance the purchase of Occidental Anadarko. Shares of Occidental rose nearly 1% in Thursday morning trading. — Alex Crippen of CNBC provided the coverage.
Credit: www.cnbc.com /
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