Buffett’s Berkshire Hathaway spent another $122 million on Occidental Petroleum shares, raising its stake in the energy company to 19.4%.
The billionaire investor’s conglomerate raised up circa 2 million shares, paying around $57.70 a piece, a SEC filing revealed this week.
Berkshire now owns nearly 182 million shares of the oil-and-gas explorer and producer by holding worth $10.9 billion based on Occidental’s shares (closing price of $60.05 )
Tweet on Berkshire Hathway OXY shares
Berkshire Hathaway spent another $122 million on Occidental Petroleum shares, raising its stake in the energy company to 19.4%.
— The_Journalbiz (@the_journalbiz) July 20, 2022
Buffet’s company initially built a 3% stake in Occidental during the first two months of this year.
It has spent about $9.5 billion to increase the position by six-fold since then, mostly in the first half of March and during the past month.
Berkshire already uses the “equity method” to account for its stakes of over 20% in Kraft Heinz, Pilot, Berkadia, and other companies.
Along with its common shares of Occidental, Berkshire owns $10 billion worth of preferred shares, which yield $800 million of dividends yearly.
It also holds stock warrants granting it the right to buy a further 83.9 million common shares for $5 billion.
Buffett secured the preferred stock and warrants in exchange for providing $10 billion of financing for Occidental’s takeover of Anadarko Petroleum in 2019.
Energy stocks have surged this year on the back of Russia’s invasion of Ukraine, which has disrupted global energy supplies and pushed up fuel prices.
Occidental shares have soared 93% this year, lifting the fossil-fuel specialist’s market capitalization to about $56 billion.
Chevron stock, which Berkshire bought aggressively in the first quarter, has gained 17% this year.