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Berkshire Hathaway (NYSE:BRK.B) of billionaire Warren Buffett has announced a stake in oil giant Occidental Petroleum (NYSE:OXY) worth more than $5 billion, including a $3 billion share purchase this week.
Berkshire Hathaway owns 91 million shares, or just under 10%, in Occidental Petroleum (OXY), according to the latest filings on Friday. The fund reported holding 30 million shares as of March 1 and added another 60 million by purchasing shares on Wednesday, Thursday and Friday at prices ranging from $47.07 to $56.45.
In total, Berkshire Hathaway owns about 175 million shares of Occidental (OXY), including 84 million warrants. In addition, the fund owns 100,000 preferred shares of Occidental, which it received when it provided the oil company with $10 billion to buy Anadarko Petroleum in 2019.
The 84 million warrants have an exercise price of $59.62 and are linked to Buffett’s earlier investment in OXY to facilitate the acquisition of Anadarko. Including warrants, Berkshire will have a $10 billion stake in OXY.
Shares of Occidental Petroleum (OXY) are up this week, soaring 45%, including an 18% gain on Friday as crude rose to $115 a barrel amid the Russian invasion of Ukraine.
Earlier this week, JPMorgan said oil could rise to $185 if Russia’s self-sanctions continue, and Bloomberg reported Friday that the Biden administration is considering imposing a ban on U.S. imports of Russian crude oil.