Berkshire expands Occidental shareholding: press
Berkshire Hathaway, the Nebraska-based vehicle owned by Warren Buffet, has purchased a further 1.94mn shares in Texas E&P company Occidental Petroleum, Reuters reported July 19.
The move brings Berkshire closer to a quota that would allow it to book some of Occidental's earning report alongside its own financial update. A 20% stake would allow Berkshire to record its proportionate share of Occidental earnings, under a rule known as the equity method of accounting.
Berkshire currently owns around $10bn of Occidental preferred stock, and also has warrants to purchase another 83.9mn common shares worth $5bn. Regulatory filings indicate Berkshire paid $112mn for stock purchases from July 14 to July 16, giving it a 19.4% stake valued at around $10.9bn.
Occidental Petroleum's share price has more than doubled this year, rising on the back of higher oil prices in light of Russia's invasion of Ukraine.