Buffett’s Berkshire buys more Occidental in endorsement of Permian Basin-related purchase
Publishing timestamp: 2023-12-14 11:56:22
Summary
Berkshire Hathaway, led by Warren Buffett, has purchased over 10 million shares of Occidental Petroleum worth $588 million. This indicates confidence in Occidental's decision to acquire CrownRock, a privately held producer in the Permian Basin. Berkshire now owns a 27% stake in Occidental, valued at $13.6 billion. Occidental plans to finance the acquisition with debt and common stock issuance. Despite Occidental's existing debt from previous acquisitions, Buffett's investment signals his belief in the deal. Occidental's CEO, Vicki Hollub, stated that the company plans to reduce its debt below $15 billion by divesting non-core domestic assets.
Sentiment: POSITIVE
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