Why Occidental Petroleum Stock Jumped Today

Occidental Petroleum's (NYSE: OXY) stock price rose 4.8% on Tuesday after Warren Buffett-led Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) boosted its stake in the oil and gas company. 

Buffett's investment conglomerate bought more than 794,000 shares of Occidental Petroleum for roughly $55 per share on Thursday, according to a regulatory filing posted on Monday. The purchases brought Berkshire's holdings in the energy provider to over 153.5 million shares -- a stake valued at nearly $9.5 billion.

Berkshire helped to finance Occidental's acquisition of Anadarko Petroleum back in 2019. In exchange for its $10 billion investment, Berkshire received preferred stock that yields 8% per year in dividend payments. It also received a warrant to buy as many as 80 million shares of Occidental at an exercise price of $62.50 a share.

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Source Fool.com