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Warren Buffett's Berkshire Beefs Up Occidental Stake To Nearly 28% After Oil Producer's $12B CrownRock Mega-Deal

Published 22/12/2023, 04:56
© Reuters.  Warren Buffett's Berkshire Beefs Up Occidental Stake To Nearly 28% After Oil Producer's $12B CrownRock Mega-Deal

Benzinga - by Shanthi Rexaline, Benzinga Editor.

Warren Buffett-led Berkshire Hathaway, Inc. (NYSE:BRK) (NYSE:BRK) disclosed on Thursday that it acquired an additional stake in Occidental Petroleum Corp. (NYSE:OXY), closely following a multi-million-dollar M&A transaction announced by the integrated oil producer.

Here are the details of the trade as per the Form F filed with the SEC:

  • Tuesday: Berkshire purchased shares in two tranches — 747,861 shares at a weighted average price of $59.4917, valued at $44.49 million, and 879,122 shares at a weighted average price of $60.1638, valued at $52.89 million.
  • Wednesday: 1,812,508 shares at a weighted average price of $60.504, valued at $109.66 million.
  • Thursday: 1,743,124 shares at a weighted average price of $60.2631, valued at $105.05 million.

Why It Matters: After this week’s purchases, Berkshire now holds a total of 243,715,804 Occidental shares, equivalent to 27.77% of the company’s total outstanding shares of 877.58 million.

In addition to the common shares, Berkshire also possesses 84,897 preferred shares of Occidental, convertible to 83,858,848.81 shares at a conversion price of $59.624. The preferred shares were issued on Aug. 8, 2019, as part of its financing to help the oil company acquire peer Anadarko.

Occidental earlier this month agreed to acquire Midland-based oil and gas producer CrownRock L.P. in a $12 billion cash-and-stock deal.

Berkshire has been actively acquiring Occidental shares since early 2022, although Buffett has clarified in the past that he has no intention to acquire the company.

Read Next: Warren Buffett Is Expected To Rake In Over $6 Billion In Dividends In The Next Year – Here Are His 3 Biggest Income-Producing Stocks

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© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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