Berkshire Ramps Up Wager on Occidental as Crude Prices Surge
(Bloomberg) -- Berkshire Hathaway Inc., the conglomerate run by billionaire Warren Buffett, boosted its investment in energy giant Occidental Petroleum Corp. as oil prices hit their highest level in almost a decade.
Berkshire this year purchased almost 30 million additional shares of Occidental, according to a Friday regulatory filing, bringing its total holdings to 113.7 million shares. Omaha, Nebraska-based Berkshire holds about 11.2% of Occidental common shares in an investment currently valued at about $6.4 billion.
Berkshire did not immediately respond to a request for comment about the purchase.
Berkshires additional investment in Occidental comes as the price of crude has surged to multi-year highs following Russia's invasion of Ukraine and fears of a supply crunch. Oil topped $115 a barrel on news the U.S. is considering a ban on imports of Russian crude as additional punishment on Moscow. Prices could reach $150 a barrel in the next three months if Russian crude continues to be largely shunned, said Damien Courvalin, head of energy research at Goldman Sachs Group Inc.
Shares of Occidental soared this week, logging a 45% gain, the biggest gain since 2020. Occidental' s shares havent been this high since its May 2019 announcement of a definitive $55-billion deal, inclusive of debt, for Anadarko Petroleum Corp.
Buffett invested $10 billion to help fund Occidentals takeover of Anadarko. Most of Berkshires stake in Occidental -- more than 83 million shares -- are tied to warrants acquired in that deal, which have been generating payments.
Billionaire activist investor, Carl Icahn, who battled the Anadrako deal and blasted Buffetts expensive financing, cut his stake in Occidental to 3.4%, selling 26,941,467 shares between Feb. 28 through March 2, according to filings.
A representative for Icahn wasnt immediately available for comment.
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
KEEPING THE ENERGY INDUSTRY CONNECTED
Subscribe to our newsletter and get the best of Energy Connects directly to your inbox each week.
By subscribing, you agree to the processing of your personal data by dmg events as described in the Privacy Policy.
More oil news

China Refiners Set to Resell US Oil Cargoes After Tariff Blitz

Shell starts up new facility in UK North Sea, restoring production from the Penguins field

Oil Falls to Lowest Settlement Price of 2025 as Traders Flee

Oil Falls After Trump Delays Canada, Mexico Tariffs by a Month

Wright Confirmed to Lead Energy Agency Key to Trump’s Plans

Oil Rises as Trump Slaps Tariffs on Biggest Crude Supplier to US

UAE’s Adnoc Aims to Buy Nova Chemicals, Roll Into Deal With OMV

Ukrainian Drone Surge Highlights Russian Oil Refining Risk

South Korea Exports Resilient as Trump’s Tariff Threat Looms
