Why Does Warren Buffett Own Occidental Petroleum? Berkshire Hathaway’s OXY Stake Explained

Summary

“Why does Warren Buffett own Occidental Petroleum?” is one of the most common questions surrounding OXY stock, but the wording needs an important 2026 clarification.

The large Occidental position is legally held by Berkshire Hathaway and its subsidiaries, not by Warren Buffett personally.

Buffett was Berkshire's CEO when the Occidental relationship was created and expanded, and he remains Berkshire's Chairman. However, Gregory Abel became Berkshire Hathaway CEO on January 1, 2026, and Berkshire states that major capital-allocation and investment decisions are now Abel's responsibility.

As of March 31, 2026, Berkshire reported owning:

• 26.9% of outstanding OXY common stock;
• Occidental preferred stock with approximately $8.5 billion liquidation value;
• Warrants to purchase up to 83.9 million OXY shares at $59.59 per share.

Berkshire also acquired Occidental's OxyChem business in January 2026.

The relationship is therefore far broader than a normal stock position.

How Did Berkshire's Occidental Relationship Begin?

The modern relationship began with Occidental's attempt to acquire Anadarko Petroleum in 2019.

Occidental needed substantial financing.

On April 30, 2019, Berkshire committed $10 billion if Occidental completed the Anadarko acquisition.

When the deal closed, Berkshire received:

• $10 billion of Occidental preferred stock;
• Warrants to purchase Occidental common shares.

Why Was the Preferred Stock So Attractive to Berkshire?

The preferred stock pays an 8% annual dividend.

That means the original $10 billion face value represented approximately:

$800 million annual preferred dividend

before subsequent redemptions reduced the outstanding amount.

By March 31, 2026, Berkshire's remaining preferred investment had an aggregate liquidation value of approximately $8.5 billion.

At an 8% rate, that represents a substantial continuing financing cost for Occidental.

What Are Berkshire's OXY Warrants?

Berkshire currently has warrants allowing it to purchase up to approximately:

83.9 million OXY shares

at:

$59.59 per share.

The original 2019 agreement involved 80 million shares at a higher exercise price, but anti-dilution adjustments later changed both the share count and strike price.

These warrants are separate from Berkshire's existing common-stock holdings.

How Much OXY Common Stock Does Berkshire Own?

Berkshire's Q1 2026 filing states:

26.9% of outstanding Occidental common stock as of March 31, 2026, excluding the potential effect of the warrants.

Occidental's own proxy can show a higher beneficial-ownership percentage because SEC beneficial-ownership calculations can include shares obtainable through exercisable warrants.

Therefore, investors should always check what a percentage includes before comparing sources.

Why Is the Position Associated With Warren Buffett?

The relationship developed while Warren Buffett was Berkshire CEO and principal capital allocator.

Buffett stepped down as CEO at the end of 2025 but remains Chairman of Berkshire's board. Gregory Abel became CEO on January 1, 2026.

It is therefore historically reasonable to call OXY a “Buffett stock,” but current articles should not imply that Buffett personally manages Berkshire's portfolio in exactly the same role he did before 2026.

Why Might Berkshire Have Liked Occidental?

No outsider can fully know Berkshire's internal investment reasoning unless Berkshire explicitly states it.

However, the structure of the investment reveals several characteristics that can be analyzed.

Large Oil Resource Base

Occidental owns substantial U.S. and international oil and gas assets.

Permian Exposure

The company has a major Permian Basin position.

Cash-Flow Potential

Oil producers can generate substantial free cash flow during favorable commodity environments.

Capital Structure Opportunity

Berkshire originally received an unusually attractive combination of preferred income and warrants.

These are observable characteristics; they should not be presented as direct quotations of Buffett's private investment thesis.

Why Debt Has Become Important to Berkshire's Economics

Occidental's preferred financing carries an 8% cost.

Current management has said reducing ordinary debt and eventually redeeming Berkshire preferred equity is an important priority.

From Occidental's perspective, eliminating expensive preferred financing could improve future cash-flow flexibility.

From Berkshire's perspective, the preferred shares generate substantial income while they remain outstanding.

What Did Berkshire Do With OxyChem?

On January 2, 2026, Berkshire completed the acquisition of Occidental's OxyChem business.

Occidental reported a transaction value of approximately $9.7 billion cash, subject to adjustments.

Berkshire now therefore has two very different Occidental-related exposures:

Occidental common/preferred securities

and

Direct ownership of the former OxyChem operating business.

Does Berkshire's Stake Mean It Will Buy Occidental?

No.

A 26.9% common-stock stake is significant, but it does not make a future full acquisition inevitable.

Possible future outcomes include:

• Berkshire holds the position;
• Berkshire changes its position;
• Warrants are exercised;
• Preferred stock is redeemed;
• The ownership percentage changes because of OXY issuance or repurchases.

Any claim that a takeover is guaranteed would be speculation.

What Happens When Occidental Starts Redeeming the Preferred?

Berkshire's preferred investment becomes redeemable at Occidental's option beginning in 2029, at 105% of liquidation value, under the governing terms.

Occidental management has said balance-sheet improvement ahead of this redemption period is an important priority.

If Occidental can retire expensive preferred capital, more future free cash flow may eventually become available for other uses.

But redemption itself requires cash.

How Does Berkshire Affect OXY Valuation?

Berkshire's position can influence investor psychology in several ways.

Some investors may view the large stake as:

• A sign of long-term conviction;
• A potential stabilizing shareholder base.

Others may focus on:

• Expensive preferred dividends;
• Potential warrant dilution;
• Uncertainty around future Berkshire decisions.

There is therefore both a positive narrative and a capital-structure cost.

Does Buffett Own OXYON?

OXYON is a different product.

It is an Ondo tokenized instrument linked economically to OXY.

There is no reason to infer that Berkshire's OXY position means Berkshire owns OXYON.

For product details, read What Is OXYON? Ondo Tokenized Occidental Petroleum Stock Explained.

FAQ

Does Warren Buffett personally own 26.9% of Occidental?

No. The figure refers to Berkshire Hathaway and its subsidiaries.

Is Warren Buffett still Berkshire CEO?

No. Gregory Abel became CEO on January 1, 2026. Buffett remains Chairman.

How much Occidental common stock does Berkshire own?

26.9% of outstanding common stock as of March 31, 2026, excluding potential warrant exercise.

What are the OXY warrants?

They currently allow Berkshire to buy up to 83.9 million shares at $59.59 each.

How much does Berkshire's preferred stock pay?

8% annually.

Did Berkshire buy OxyChem?

Yes, in January 2026.

Will Berkshire buy the rest of Occidental?

There is no guarantee or announced requirement that it do so.

Risk Disclaimer

Berkshire's investment does not guarantee future OXY performance. Berkshire can change its investments, Occidental's financial condition can change, and oil prices remain volatile.