Billionaire Warren Buffett‘s Berkshire Hathaway Inc has acquired an additional 2.95 million shares in Occidental Petroleum, increasing its stake in the U.S. oil producer to nearly 29%.
According to a regulatory filing with the U.S. Securities and Exchange Commission on Monday, Berkshire paid approximately $176 million for the shares in three separate purchases since Thursday.
These acquisitions have brought Berkshire’s holdings to about 255.3 million Occidental common shares, representing an approximately 29% stake valued at $15.37 billion as of Monday.
With these recent purchases, Buffett has acquired a total of 5.5 million shares this month.
In August 2022, Berkshire received U.S. regulatory approval to buy up to 50% of Occidental.
However, Buffett has stated that he has no intention of acquiring the Houston-based company.
Analysts and investors suggest that such an acquisition could diversify Berkshire’s energy portfolio, which already includes several utilities, electricity distributors, and renewable power projects.
Occidental Petroleum, based in Houston, Texas, expanded its presence in the largest U.S. oilfield by acquiring Permian shale oil producer CrownRock in a $12 billion deal last year.
This move was aimed at bolstering its footprint in the Permian Basin, a key area for U.S. oil production.
In addition to his current holdings, Buffett also possesses warrants to purchase another 83.5 million shares of Occidental at $59.62 per share.
This price is below Occidental’s closing price of $60.20 on Monday, indicating a potentially profitable future acquisition for Berkshire.
Occidental shares have gained about 1% this year and showed a slight increase in premarket trading on Tuesday.
The company’s strategic moves and Berkshire’s continued investment highlight the ongoing interest in and potential growth of Occidental Petroleum within the energy sector.