Warren Buffett’s Berkshire Hathaway buys more shares of Occidental Petroleum

Warren Buffett’s Berkshire Hathaway Inc. has increased its stake in Occidental Petroleum (OXY). Buffett’s bet on the energy sector can be clearly seen as per the company’s recent regulatory filing. Warren Buffett’s company bought a total of 9551454 shares of Occidental Petroleum between June 17 and June 22. The fresh investment amounts to enarly $529 million. Berkshire Hathaway is Occidental Petroleum’s biggest shareholder.

The latest purchase of nearly 9.6 million shares of Occidental Petroleum is at a price of around $55. Berkshire Hathaway has reportedly boosted its stake to 16.3% in Occidental Petroleum after the recent purchase of the oil company’s shares. Last month, Berkshire had made a $336 million share purchase in the oil company, while $7 billion worth shares were purchased earlier this year.

In total Berkshire owns about 152.7 million shares worth about $8.52 billion of Occidental Petroleum, a $52.27B market cap company. Berkshire Hathaway share price is $402,300, lower by nearly 10 per cent since January 2022.

Occidental stock is traded on the New York Stock Exchange (NYSE) under the trading symbol “OXY” and commonly listed as “Occidental” or “Occidental Petroleum.” Occidental Petroleum share price is around $56.09, up by almost 70 per cent in one-year and is over 93 per cent year-to-date. 52-week high of Occidental Petroleum is $74.04.

Occidental Petroleum Financial Highlights (1st Quarter 2022 Results)

Repaid $3.3 billion of debt, representing 12% of total outstanding principal

Earnings per diluted share of $4.65 and adjusted earnings per diluted share of $2.12

Cash flow from continuing operations of $3.2 billion and cash flow from continuing operations before working capital of $4.2 billion

Capital spending of $858 million, resulting in record quarterly free cash flow before working capital of over $3.3 billion

OxyChem generated record quarterly pre-tax earnings of $671 million; total year pre-tax earnings guidance increased to between $2.1 billion to $2.4 billion

Midstream exceeded quarterly guidance with adjusted pre-tax earnings of $148 million; total year pre-tax earnings guidance increased to between $175 million to $275 million