Warren Buffett reveals another $1.0 billion stake in this oil company


Occidental Petroleum Corporation (NYSE: OXY) is up 9.0% on Thursday after veteran investor Warren Buffett loaded up on $985 million worth of its stock.

Buffett’s total stake in Occidental Petroleum

The “Oracle of Omaha” used his conglomerate holding company, Berkshire Hathaway, to buy another 18.1 million shares of Occidental Petroleum at an average per-share price of $54.41. Berkshire’s total stake in the energy company now stands at $7.20 billion (136.4 million shares).

In 2019, Berkshire partially financed Occidental’s $55 billion acquisition of Anadarko – an investment that won it warrants to purchase roughly 84 million shares of Occidental at an exercise price of close to $60.

Including the warrants, Berkshire now has an about 22% stake in the Houston-headquartered company.

Occidental reported solid results for its fiscal Q4

According to Buffett, he decided to expand his stake in Occidental Petroleum after the hydrocarbon exploration firm reported upbeat results for its fiscal fourth quarter in the final week of February. He told CNBC’s Becky Quick:

We start buying on Monday (February 28th) and we bought all we could. I read every word of the earnings transcript, and said this is exactly what I would be doing. CEO Vicki Hollub is running the company the right way.

Shares of Occidental Petroleum have shot up 50% since the start of the Ukraine war that pushed oil prices over $120 a barrel for the first time since the global financial crisis.

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