Warren Buffett Adds More Occidental Petroleum As Energy Supply Upgrades

Warren Buffett added even more Western petroleum (OXY) supply to his Berkshire Hathaway (BRKB) portfolio in recent days, strengthening his holding in the US energy company. Meanwhile, the OXY stock was upgraded on Tuesday.


Berkshire Hathaway bought about 3.6 million shares of Occidental, according to a regulatory filing late Monday. Following the purchases, Buffett now owns a 23.5% stake in the Houston-based energy company, or some 211 million shares.

Buffett made his purchases of OXY stock between March 23 and March 27 at prices ranging from 58.28-59.62. This comes after Buffett bought 8 million OXY shares between March 13 and March 16. Berkshire Hathaway bought about 6 million shares of Occidental Petroleum earlier this month.

In the second half of 2022, Buffett was busy buying OXY stocks, with the billionaire investor targeting stocks in the $57-$61.5 price range.

Warren Buffett and OXY Stock

The stock rose 4.3% during market trading on Tuesday to about 62.23. On Monday, OXY stock closed 2.5% higher at 59.65. Buffett bought OXY stock on Monday, targeting prices between 58.61 and 59.62.

On Tuesday, TD Cowen upgraded Occidental to “outperform” from a “market perform” rating. Further, analyst David Deckelbaum has an OXY stock price target of 70, up from 63.

Deckelbaum wrote that Occidental offers “superior” exposure to crude prices, capital structure shifts, favorable free cash yield and “captive buying support” from Buffett.

Meanwhile on Monday Morgan Stanley (MS) analyst Devin McDermott lowered the company’s OXY price target to 61 from 71 and maintained an “Equal Weight” rating for the stock.

Chevron (CVX), another favorite of Warren Buffett, rose 1.2% on Tuesday. CVX shares closed 1% higher on Monday to 157.65. Also, Berkshire Hathaway owns $27 billion in Chevron stock.

Follow Kit Norton on Twitter @KitNorton for more coverage.


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