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Warren Buffett is allowed to buy up to half of Occidental Oil and Gas Company, boosting shares


Warren Buffett at a press conference during the Berkshire Hathaway General Meeting, April 30, 2022.

CNBC

Warren Buffett’s Berkshire Hathaway on Friday received regulatory approval to buy up to 50% of the oil giant’s shares Mysterious Oil.

Shares of Occidental jumped 7% on the news, pushing the 2022 gain to more than 140%.

On July 11, Berkshire filed with the Federal Energy Regulatory Commission to purchase additional shares of the oil company’s common stock in secondary market transactions. The Group argues that the maximum 50% stake will not affect competition or reduce management authority.

Carlos Clay, acting director of electrical energy management, issued the license Friday, saying it was “in the public interest.”

The group has significantly increased its stake this year. Berkshire currently owns 188.5 million shares of Occidental, or 20.2%. It crossed the critical threshold at which Berkshire could self-record some of its oil company earnings, potentially adding billions of dollars in profits.

Berkshire also owns $10 billion of Occidental preferred stock and has warrants to buy another 83.9 million shares of common stock for $5 billion, or $59.62 per share. Warrants acquired as part of the company Transactions in 2019 that helped financially Occidental’s purchase of Anadarko. Shares would rise to nearly 27% if Berkshire exercised those warrants.

Occidental is the best-performing stock in the S&P 500, benefiting from rising oil prices.

Buffett’s growing bet on Occidental inspired a group of small investors to follow suit, making it a favorite retail stocks this year, according to data from VandaTrack.

This is breaking news. Please check back for updates.



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