Occidental Petroleum Corporation (NYSE:OXY) shares were helped higher, up 1.96% to $58.34, by the latest reports of stakebuilding by Warren Buffett’s Berkshire Hathaway, amidst a reemergence of deal activity in the US shale regions.
Buffett’s investment firm now holds some 27% of the oil company, after it bought another $588.7 million worth of shares this week – its part of a deal struck alongside Occidental’s 2019 acquisition of Anadarko and ultimately could see the investor’s stake reach up to 33%.
Notably, this comes as Occidental agreed to further bolster its position through a new acquisition deal to buy private oiler CrownRock for $12 billion.
Adding CrownRock gives Occidental a larger footprint in the Permian shale. The transaction will add 170,000 barrels of oil equivalent per day to its production as well as 1,700 undeveloped locations to its operations in the Permian.
It is the latest piece of multi-billion dollar M&A in US shale in recent weeks and months.
Elsewhere, Exxon agreed to buy Pioneer Natural Resources (NYSE:PXD) for $59.5 billion, doubling its Permian footprint.
Then Chevron landed a $53 billion deal to buy Hess, adding assets in the Bakken shale (as well as a stake in a prolific offshore venture in Guyana).
In New York, Occidental Petroleum stock was up $1.40 or 2.45% in premarket deals, changing hands at $58.62.