Chevron’s interest in acquiring Occidental Petroleum has seemingly diminished, according to sources cited by the WSJ. The Dow Jones behemoth is reportedly considering other, smaller transactions.
WSJ reported late Thursday that Exxon Mobil (XOM) is close to a $60 billion agreement to acquire Pioneer Natural Resources (PX) and its massive Permian Shale reserves.
Both Chevron and Occidental are important Warren Buffett holdings at Berkshire Hathaway (BRKB). Over the past year, Buffett has been consistently purchasing OXY stock while reducing its holdings in oil giant Chevron. Berkshire owned 224.1 million shares of Occidental Petroleum at the end of the second quarter, representing a stake of just over 25%. Buffett’s conglomerate possessed 123,1 million CVX shares. Buffett has a larger investment in the Dow Jones energy behemoth Chevron due to Chevron’s much higher share price than Occidental’s.
Last week, CVX stock dropped 3.8% to 162.23, undercutting the 50-day and 200-day moving averages as crude oil and gasoline futures declined.
Last week, OXY stock dropped 5.4% to 61.40. However, shares rose 3.3% on Friday, approaching the 200-day moving average. As a result of Exxon’s rumored late-stage discussions with Pioneer Natural Resources, Occidental stock rose alongside other Permian Shale energy plays.
