• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 days GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 8 days America should go after China but it should be done in a wise way.
  • 2 days Even Shell Agrees with Climate Change!
  • 3 days How Far Have We Really Gotten With Alternative Energy
  • 4 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 3 days World could get rid of Putin and Russia but nobody is bold enough
  • 7 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
2 Ways to Play Europe’s $800 Billion Energy Crisis

2 Ways to Play Europe’s $800 Billion Energy Crisis

Europe's energy crisis, driven by…

Buffett Backs Occidental’s Acquisition of CrownRock by Buying More Stock

Warren Buffett’s Berkshire Hathaway bought close to $590 million worth of Occidental Petroleum stock this week after the latter announced it would acquire Permian oil driller CrownRock.

Occidental said it will buy CrownRock for cash and stock in a deal valued at around $12 billion, including debt. The target company has more than 94,000 net acres of premium stacked pay assets and supporting infrastructure that “are well positioned alongside Occidental’s legacy Midland Basin business,” per the buyer.

The deal will add 170,000 barrels of oil equivalent in daily output to Occidental’s total.

Following the news, Berkshire Hathaway bought stock in Occidental in five tranches, Bloomberg reported today. It has cemented the investment company as Occidental’s largest shareholder with a stake of 27%.

Three years ago, Berkshire Hathaway funded Oxy’s takeover of Anadarko with $10 billion in the form of equity. As part of that deal, the investment firm received stock purchase warrants that allowed it to acquire 20% or more in Occidental.

Berkshire has been buying stock in Occidental for over a year with regular stock purchases. At one point these gave rise to talk that Berkshire Hathaway was preparing to take over Occidental. Buffet himself dispelled the rumors, saying “We will not be making any offer for control of Occidental, but we love the shares we have.

“We may or may not own more in the future but we certainly have warrants on what we got as part of the original deal on a very substantial amount of stock around $59 a share, and warrants last a long time, and I’m glad we have them.”

According to Bloomberg, Occidental did not need financial help from Buffett’s firm for the acquisition of CrownRock but the stock purchases are bound to be seen as a sign of support for the move from the company’s largest shareholder.

ADVERTISEMENT

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News