After months of acquiring Occidental Petroleum Corp. shares, Warren Buffett's <a href="https://www.berkshirehathaway.com/" target="_blank" rel="nofollow noopener">Berkshire Hathaway Inc.</a> received regulatory clearance from the US to purchase up to 50% of the company. The move boosted Occidental's stock price.

According to a document published Friday, Berkshire asked for clearance from the Federal Energy Regulatory Commission on July 11. Carlos D. Clay, the interim head of the commission's department of electric power regulation for the west, stated in the document,
<blockquote><em>"It is concluded that the proposed transaction is consistent with the public interest and is authorized."</em></blockquote>
Berkshire has spent the past year buying up Occidental stock to increase its wager on the Houston-based oil business that has already begun to pay off. Berkshire revealed earlier this month that its ownership in Occidental had crossed a critical level, which may result in additional quarterly disclosures and a boost to the company's profitability.
<h2>Buffett Praised Hollub's Management</h2>
Vicki Hollub, the chief executive officer of Occidental, was pursuing Anadarko Petroleum Corp. in 2019. Buffett supported her efforts by deciding to invest US$10 billion in Occidental at the time, a deal that comprised both preferred shares and warrants. Buffett lauded Hollub's leadership this year, indicating that the billionaire <a href="https://www.cryptoknowmics.com/news/indian-police-want-bitconnect-founder-for-swindling-crypto-investors/" target="_blank" rel="noopener">investor</a> was all-in on Occidental, which fueled anticipation that Berkshire, which has more than US$105 billion in cash at the end of June, may try to acquire additional stock.

This year, Hollub has aggressively taken steps to increase returns to shareholders by limiting capital-intensive production expansion in favor of dividends and share buybacks for shareholders. She has also substantially reduced the $30 billion debt the business accrued when it acquired Anadarko in 2019.
<h2>Carbon Capture - A Pioneer Technology</h2>
The Inflation Reduction Act, which increased tax incentives for carbon capture - a technology in which Occidental is a pioneer - was passed last month, giving the industry an additional boost. Hollub praised the legislation as "really encouraging."

Occidental intends to make carbon capture from the atmosphere a significant component of its ambitious goal of being net zero by mid-century, one of the most ambitious plans of any US major oil firm.

Berkshire Hathaway Intends to Purchase Up to 50% of Occidental

After months of acquiring Occidental Petroleum Corp. shares, Warren Buffett's Berkshire Hathaway Inc. received regulatory, US to purchase up 50% of company.

Gungun is an enthusiastic writer that likes to create content for various aspects of the blockchain and crypto industry. She carries out extensive research and provides readers with informative and high-quality material.

Berkshire Hathaway Intends to Purchase Up to 50% of Occidental

Top Picks