OMAHA, NE— Berkshire Hathaway Inc . (NYSE:BRKa), led by renowned investor Warren E. Buffett, has significantly increased its stake in Occidental Petroleum Corp. (NYSE:NYSE:OXY). Recent filings reveal that over the course of three days, Berkshire Hathaway acquired a substantial number of shares, totaling $409 million. The timing appears strategic, as InvestingPro data shows OXY trading near its 52-week low with a P/E ratio of 11, while technical indicators suggest the stock is in oversold territory.
The transactions occurred between December 17 and December 19, 2024, with Berkshire purchasing a total of 8,905,890 shares. The stock was bought at a weighted average price ranging from $45.5458 to $46.9172 per share. These purchases were made indirectly through Berkshire's subsidiary, National Indemnity Company.
Following these transactions, Berkshire Hathaway now holds approximately 264 million shares of Occidental Petroleum, further solidifying its position as a major shareholder in the company. This move comes as part of Buffett's ongoing strategy to invest in energy and transportation sectors, aligning with Occidental's focus on crude petroleum and natural gas.
The transactions were disclosed in a Form 4 filing with the Securities and Exchange Commission, highlighting Berkshire Hathaway's continued confidence in Occidental Petroleum's potential for growth and value creation.
In other recent news, Occidental Petroleum has been in the spotlight for its strong third-quarter performance. The company reported record-high U.S. production and significant debt reduction, generating $1.5 billion in free cash flow and an adjusted profit of $1.00 per diluted share. Susquehanna maintained a positive rating on Occidental Petroleum's shares, despite reducing the price target from $77 to $65 following these results.
The company's robust performance is anchored by new wells in the Permian Basin and the integration of recently acquired CrownRock assets. It's expected to reach a production level of 1,450 thousand barrels of oil equivalent per day in the fourth quarter. In addition, Occidental Petroleum has made strides in debt reduction, paying off $4 billion and reaching approximately 90% of its short-term $4.5 billion debt reduction target.
Susquehanna's revised price target reflects their confidence in Occidental's strategic initiatives and ability to manage capital efficiently. The company plans to continue operating a five-rig program within its CrownRock assets throughout 2025, a strategy anticipated to yield mid-single-digit growth. These are recent developments that show the company's commitment to its deleveraging strategy, efficiency, and stability in the face of potential market volatility.
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