(Bloomberg) — Occidental Petroleum has purchased again $522 million of most popular inventory of Berkshire Hathaway Inc. Within the second quarter, exhibiting 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 popular 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, based on 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. Nonetheless, he dominated out shopping for the oil product fully.
Shares of Occidental fell 2.7% in aftermarket buying and selling, as the corporate missed analyst earnings estimates attributable to weak realized costs for gasoline manufacturing. The corporate raised its 2023 manufacturing steerage by 1.3%, but additionally reported higher-than-expected capital spending.
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