Warren Buffett Hikes Occidental Petroleum Stake After Getting Regulatory OK To Buy 50%

Warren Buffett bought more western oil (OXY) actions after his Berkshire Hathaway (BRKB) has received regulatory approval to buy up to 50%. OXY stock rose slightly on Friday night.




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Berkshire Hathaway now owns 26.8% of Occidental Petroleum, according to a regulatory filing late Friday. This happened exactly a month after Warren Buffett’s company revealed that its stake in OXY shares had reached 20.2%. Crossing the 20% ownership level means Berkshire Hathaway can post Occidental’s profits on its books.

The Federal Energy Regulatory Commission has authorized Berkshire Hathaway to buy up to 50% of Occidental Petroleum. This is according to an order made public on August 19. Berkshire made the request on July 11.

There is speculation that Berkshire could choose to buy all Westerners, although the Wall Street Journal, citing sources, reported last month that Warren Buffett was unlikely to do so.


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OXY shares rise on Buffett buys

OXY stock rose 1.6% late in Friday’s trading. For the week, Occidental Petroleum stock fell 4.6% to 65.61, although it found support at its 50-day moving average.

Shares of OXY broke from a cup-handling base powerfully on Aug. 19 on news that Buffett had approval to buy 50% of the company. The shares hit a record high of 77.13 on August 29, but have now made the round trip of all that gain from the buy point of 66.26.

Western stocks held up better than many oil producers over the summer, thanks to Warren Buffett steadily adding stocks. But OXY stock is under pressure, with crude oil prices falling significantly.

Meanwhile, BRKB stock rose 2.9% to 285.77 last week. This followed three weekly declines, initiating a large reversal from the 200-day moving average.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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