SCHEDULE: Berkshire Hathaway Boosts Occidental Stake to 32.7%

Warren Buffett's Berkshire Hathaway and its affiliates have increased their beneficial ownership in Occidental Petroleum Corporation to 32.7% of common stock, including warrants.

Summary

• Warren E. Buffett, Berkshire Hathaway Inc., and National Indemnity Company collectively beneficially own 348,853,373.38 shares of Occidental Petroleum Corporation common stock.
• This represents 32.7% of the class of common stock.
• The reported shares include warrants for an aggregate of 83,911,942.38 shares of common stock.
• The warrants were initially issued on August 8, 2019, for 80,000,000 shares at an exercise price of $62.50 per share.
• Anti-dilution adjustments on June 26, 2020, lowered the exercise price to $59.624 per share and increased the shares issuable to 83,858,848.81.
• Further anti-dilution adjustments by July 17, 2025, reduced the exercise price to $59.586 per share and increased the shares issuable to 83,911,942.38.
• The Berkshire Warrants have not been exercised as of the filing date.
• The securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing control of Occidental Petroleum.

Sentiment

Score: 8

Explanation: The filing indicates a very substantial and growing stake by Berkshire Hathaway, a highly respected investment entity, in Occidental Petroleum. This strong commitment, including a large number of warrants, suggests a positive long-term view of the company's value and prospects.

Positives

• Significant investment by a highly respected investor (Warren Buffett/Berkshire Hathaway) signals confidence in Occidental Petroleum's long-term prospects.
• The substantial stake of 32.7% indicates a strong commitment to the company.
• The inclusion of warrants, which have seen anti-dilution adjustments, suggests a long-term strategic position.

Future Outlook

The filing notes that the Berkshire Warrants have not been exercised, implying potential future exercise. The anti-dilution adjustments up to July 17, 2025, indicate ongoing adjustments to the warrant terms.

Management Comments

• The securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under ?? 240.14a-11.

Industry Context

This filing, while not providing industry analysis, highlights a significant investment by a major conglomerate (Berkshire Hathaway) in the energy sector, specifically in a large oil and gas company like Occidental Petroleum. This indicates continued confidence from a prominent investor in the long-term viability and potential of the traditional energy industry.

Stakeholder Impact

• Shareholders: Increased confidence due to a major, long-term investor's significant stake. Potential for increased share price stability or upward movement due to perceived endorsement.
• Management: Validation of strategic direction and operations due to continued investment from a prominent entity.
• Creditors: Potentially improved credit perception due to strong institutional backing.

Next Steps

• Potential future exercise of the Berkshire Warrants.
• Ongoing monitoring of anti-dilution adjustments to the warrants.

Key Dates

Recommendation

The substantial and increasing stake by Warren Buffett's Berkshire Hathaway, now at 32.7% including warrants, signals a very strong vote of confidence in Occidental Petroleum's long-term value and strategic direction. Berkshire's history of deep value investing and long-term holding suggests that this significant position is based on a thorough analysis of Occidental's fundamentals and future prospects. The continued accumulation and holding of warrants, despite anti-dilution adjustments, further underscores this conviction. For a seasoned investor, this level of commitment from such a reputable entity makes Occidental Petroleum a compelling "strong buy" candidate, indicating potential for significant future appreciation.

Keywords

Occidental Petroleum, OXY, Berkshire Hathaway, Warren Buffett, National Indemnity Company, Schedule 13G, beneficial ownership, common stock, warrants, anti-dilution, energy, oil and gas