(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 yr 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 frequent inventory and is the corporate’s largest shareholder, in accordance with information compiled by Bloomberg. Buffett stated at a shareholder assembly in Omaha earlier this yr that Berkshire is keen to purchase extra Occidental frequent inventory. Nevertheless, he dominated out shopping for the oil product totally.
Shares of Occidental fell 2.7% in aftermarket buying and selling, as the corporate missed analyst earnings estimates as a consequence of weak realized costs for fuel manufacturing. The corporate raised its 2023 manufacturing steering by 1.3%, but additionally reported higher-than-expected capital spending.
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