Berkshire also owns US$10 billion of Occidental preferred stock, and has warrants to buy another 83.9 million common shares for US$5 billion, or US$59.62 each. That is slightly below the shares’ Thursday closing price of US$61.47.
Occidental’s share price has more than doubled this year, helped by Berkshire’s purchases as well as rising oil prices following Russia’s invasion of Ukraine.
Buffett’s Omaha, Neb.-based conglomerate owns dozens of businesses including the BNSF railroad, Geico car insurer and its namesake energy business, as well as stocks including Apple Inc. and Bank of America Corp.
Occidental has been reducing debt since purchasing Anadarko Petroleum Corp. for US$35.7 billion in 2019. Berkshire’s preferred stock investment helped finance that takeover.
Berkshire’s share price has fallen seven per cent this year, compared with an 18 per cent decline in the Standard & Poor’s 500.