Warren Buffett's Occidental end game

OXY analyst: Billionaire comfortable with growth initiatives and carbon capture

Warren Buffett’s Berkshire Hathaway has upped its stake in Occidental Petroleum again, according to a filing from the Securities and Exchange Commission (SEC).

The move will lift Buffett’s equity to around 23.5%, up from 22.6%, while bringing his overall investment to more than $13 billion. In August 2022, the Oracle of Omaha received approval from the Federal Energy Regulatory Commission (FERC) to acquire up to 50% of the Texas-based oil producer. 

Occidental sign on office building

The Westwood corporate headquarters of Occidental Petroleum Corporation, which has announced plans to move to Houston, photographed Feb. 14, 2014. (Jay L. Clendenin/Los Angeles Times via Getty Images / Getty Images)

Ticker Security Last Change Change %
BRK.A BERKSHIRE HATHAWAY INC. 639,500.00 +10,420.00 +1.66%
OXY OCCIDENTAL PETROLEUM CORP. 61.19 -0.29 -0.47%

In an interview with FOX Business, David Deckelbaum, managing director of Sustainability & Energy Transition at Cowen Inc., said year-to-date, Buffett’s Berkshire Hathaway has purchased "about 15 million shares or 2% of the company."

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As Occidental Petroleum pays down Berkshire Hathaway’s preferred notes, Buffett is incentivized to buy half of the company, he continued. "I think he feels comfortable with the base value and returns but sees upside from combinations for scale and longer-term growth initiatives such as carbon capture."

Warren buffett laughs

Berkshire Hathaway Chairman and CEO Warren Buffett laughs while touring the exhibit floor at the CenturyLink Center in Omaha, Neb., May 6, 2017. (AP Photo/Nati Harnik / AP Images)

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Buffett’s regulatory approval to buy 50% of Occidental would "certainly bring a narrative to the story that they would be a strategic takeout," Deckelbaum added.

Occidental Petroleum’s share price more than doubled in 2022, benefiting from higher oil prices after Russia invaded Ukraine.

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Warren Buffett in Omaha

Warren Buffett, chairman and CEO of Berkshire Hathaway, smiles as he plays bridge following the annual Berkshire Hathaway shareholders meeting in Omaha, Neb. (AP Photo/Nati Harnik, File / AP Newsroom)

In addition to Occidental Petroleum, Berkshire holds equity in a variety of companies, including car insurer Geico, BNSF Railway, Chevron, Fruit of the Loom and Apple.

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Ticker Security Last Change Change %
CVX CHEVRON CORP. 155.59 +0.33 +0.21%
AAPL APPLE INC. 230.54 +2.97 +1.31%

FOX Business reporter Ken Martin and Reuters contributed to this report.