Warren Buffett continues to buy more shares of Occidental Petroleum (OXY) as the price slumps along with crude oil prices.
Buffett’s holding company, Berkshire Hathaway (BRK.A / BRK.B) has been a big buyer of Occidental stock in recent days, snapping up 10.5 million shares worth $590 million U.S.
Berkshire Hathaway now holds a stake of 238.5 million shares worth $13.6 billion U.S. in the oil company, or a 27% interest, according to regulatory filings.
Berkshire paid an average price of $56 U.S. a share for its latest purchase of Occidental Petroleum stock.
Berkshire has been buying more Occidental Petroleum stock as the price hit a 52-week low.
The latest buys are seen as a vote of confidence by Buffett in Occidental Petroleum, as well as the company’s $12 billion U.S. acquisition of privately held energy producer CrownRock.
Occidental Petroleum’s stock has slumped as crude oil prices have fallen to $70 U.S. per barrel. The share price has also been pushed lower after news broke of the CrownRock deal.
Some analysts have raised concerns about the CrownRock acquisition, saying it adds debt to Occidental’s heavily leveraged balance sheet.
The stock of Occidental Petroleum has declined 6% in 2023 and currently trades at $57.22 U.S. per share.
Berkshire Hathaway’s Class B stock has increased 17% this year to trade at $362.03 U.S. a share.
