Occidental buys $522 million of Berkshire most well-liked inventory

(Bloomberg) — Occidental Petroleum has purchased again $522 million of most well-liked inventory of Berkshire Hathaway Inc. Within the second quarter, displaying willingness to repay Warren Buffett even with decrease commodity costs.

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The acquisition brings Occidental’s recoveries this 12 months to 12% of Berkshire’s preliminary $10 billion funding, which was used to fund the product’s acquisition of Anadarko Petroleum Corp. in 2019. Berkshire’s most well-liked inventory carries an annual dividend of 8%, making it an costly a part of Occidental’s capital construction.

Individually, Berkshire owns 25% of Occidental’s widespread inventory and is the corporate’s largest shareholder, in accordance with information compiled by Bloomberg. Buffett mentioned at a shareholder assembly in Omaha earlier this 12 months that Berkshire is prepared to purchase extra Occidental widespread inventory. Nonetheless, he dominated out shopping for the oil product completely.

Shares of Occidental fell 2.7% in aftermarket buying and selling, as the corporate missed analyst earnings estimates as a result of weak realized costs for fuel manufacturing. The corporate raised its 2023 manufacturing steerage by 1.3%, but in addition reported higher-than-expected capital spending.

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