Form 4: Berkshire Hathaway Increases Stake in Occidental Petroleum, Acquires Additional Shares

Berkshire Hathaway, led by Warren Buffett, continues to increase its investment in Occidental Petroleum, acquiring millions of additional shares in early June 2024.

Summary

• Berkshire Hathaway, through its subsidiary National Indemnity Company, has acquired additional shares of Occidental Petroleum (OXY) common stock.
• On June 5, 2024, Berkshire purchased 524,340 shares at a weighted average price of $59.7452, increasing its holdings to 248,542,468 shares.
• On June 6, 2024, the company bought 654,293 shares at a weighted average price of $59.9342, bringing the total to 249,196,761 shares.
• On June 7, 2024, Berkshire acquired 1,386,844 shares at a weighted average price of $59.6687, raising its stake to 250,583,605 shares.
• Berkshire also holds 84,897 shares of Series A Preferred Stock and warrants to purchase 83,858,848.81 shares of common stock.
• Warren Buffett, as the controlling stockholder of Berkshire, may be deemed to beneficially own these shares, but he disclaims beneficial ownership except to the extent of his pecuniary interest.

Sentiment

Score: 8

Explanation: The sentiment is positive due to Berkshire Hathaway's continued investment in Occidental Petroleum, indicating confidence in the company's prospects. The large scale of the investment and Warren Buffett's involvement further contribute to the positive sentiment.

Positives

• Berkshire Hathaway's continued investment signals confidence in Occidental Petroleum's future prospects.
• The increased stake could lead to greater influence and potential strategic benefits for Berkshire.
• The purchases provide liquidity to the market and may support Occidental Petroleum's share price.

Risks

• The warrants held by Berkshire have adjustable terms that could change based on future events.
• Warren Buffett disclaims beneficial ownership of the reported securities except to the extent of his pecuniary interest, which could impact his level of involvement.

Future Outlook

The document does not contain specific forward-looking statements, but Berkshire's continued investment suggests a positive outlook on Occidental Petroleum.

Management Comments

• Warren Buffett disclaims beneficial ownership of the reported securities except to the extent of his pecuniary interest therein.

Industry Context

Berkshire Hathaway's increased investment in Occidental Petroleum reflects a broader trend of value investors seeking opportunities in the energy sector, particularly companies with strong assets and potential for long-term growth. This move aligns with Berkshire's strategy of investing in established companies with durable competitive advantages.

Comparison to Industry Standards

• Berkshire Hathaway's investment in Occidental Petroleum is significant compared to other major shareholders in the oil and gas industry.
• Other major oil companies such as ExxonMobil and Chevron have different investment profiles, focusing on internal growth and acquisitions of smaller companies.
• Berkshire's approach is more akin to a strategic partnership, leveraging its financial strength and expertise to support Occidental's operations.

Stakeholder Impact

• Shareholders of Occidental Petroleum may view Berkshire's increased stake positively, potentially leading to an increase in the stock price.
• Employees may feel more secure knowing that a major investor like Berkshire Hathaway is committed to the company.
• Creditors may see Occidental Petroleum as a more stable investment due to Berkshire's backing.

Key Dates