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

Warren Buffett bought up more Occidental Petroleum (OXY) shares after his Berkshire Hathaway (BRKB) won regulatory approval to buy up to 50%. OXY stock rose slightly late Friday.

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Berkshire Hathaway now owns 26.8% of Occidental Petroleum, according to a regulatory filing Friday night. That came exactly one month after Warren Buffett’s firm disclosed its OXY stock stake had reached 20.2%. Crossing the 20% ownership level means Berkshire Hathaway can record Occidental earnings on its books.

The Federal Energy Regulatory Commission has given Berkshire Hathaway permission to buy up to 50% of Occidental Petroleum. That’s according to an order made public on Aug. 19. Berkshire made the request on July 11.

There is speculation that Berkshire could choose to buy all of Occidental, though The Wall Street Journal, citing sources, reported last month that Warren Buffett was unlikely to do so.

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OXY Stock Rises On Buffett Buys

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

OXY stock broke out of a cup-with-handle base powerfully on Aug. 19 on the news that Buffett had approval to buy 50% of the company. Shares ran up to a record 77.13 on Aug. 29, but have now round-tripped all of that gain from the 66.26 buy point.

Occidental stock had held up better than many oil producers during the summer, thanks to Warren Buffett steadily adding shares. But OXY stock has come under pressure with crude oil prices retreating significantly.

Meanwhile, BRKB stock rose 2.9% to 285.77 last week. That followed three weekly declines, starting a big 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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