(Bloomberg) — Berkshire Hathaway Inc., the conglomerate run by billionaire Warren Buffett, boosted its investment in energy giant Occidental Petroleum Corp. as oil prices hit their highest level in almost a decade.
Most Read from Bloomberg
Ukraine Update: U.K. Premier Says More Pressure Needed on Putin
Putin’s Ruble Workaround Still Leaves Bond Payments in Doubt
Ukraine Update: U.S. May Go Alone on Russia Oil Ban; Crude Soars
Stakes Rise as Putin Says His War in Ukraine Will Continue
Putin Warns Ukraine as Safe-Passage Plans Descend Into Chaos
Berkshire this year purchased almost 30 million additional shares of Occidental, according to a Friday regulatory filing, bringing its total holdings to 113.7 million shares. Omaha, Nebraska-based Berkshire holds about 11.2% of Occidental common shares in an investment currently valued at about $6.4 billion.
Berkshire did not immediately respond to a request for comment about the purchase.
Berkshire’s additional investment in Occidental comes as the price of crude has surged to multi-year highs following Russia’s invasion of Ukraine and fears of a supply crunch. Oil topped $115 a barrel on news the U.S. is considering a ban on imports of Russian crude as additional punishment on Moscow. Prices could reach $150 a barrel in the next three months if Russian crude continues to be largely shunned, said Damien Courvalin, head of energy research at Goldman Sachs Group Inc.
Shares of Occidental soared this week, logging a 45% gain, the biggest gain since 2020. Occidental’s shares haven’t been this high since its May 2019 announcement of a definitive $55-billion deal, inclusive of debt, for Anadarko Petroleum Corp.
Buffett invested $10 billion to help fund Occidental’s takeover of Anadarko. Most of Berkshire’s stake in Occidental — more than 83 million shares — are tied to warrants acquired in that deal, which have been generating payments.
Billionaire activist investor, Carl Icahn, who battled the Anadrako deal and blasted Buffett’s expensive financing, cut his stake in Occidental to 3.4%, selling 26,941,467 shares between Feb. 28 through March 2, according to filings.
A representative for Icahn wasn’t immediately available for comment.
Most Read from Bloomberg Businessweek
The End of the Oligarch Era Nears With Putin’s Miscalculation in Ukraine
Elite International Schools Have a Racism Problem
The Bond King’s Genius Was No Match for His Ego
A Billionaire’s Heir Hangs Up His Healing Crystal to Fix Capitalism
Flight Routes Are Being Thrown Into Chaos With Closure of Russian Airspace
©2022 Bloomberg L.P.
