Chevron (CVX) mulled buying fellow Warren Buffett energy holding Occidental Petroleum (OXY) earlier this year, according to The Wall Street Journal reported. Both stocks rose Monday morning amid higher oil prices.
Chevron’s interest in buying Occidental Petroleum has apparently faded, WSJ reported, citing sources. The Dow Jones giant apparently is mulling other, smaller deals.
The report comes after WSJ reported late Thursday that Exxon Mobil (XOM) is close to a $60 billion deal to buy Permian Shale giant Pioneer Natural Resources (PXD).
Both Chevron and Occidental are key Warren Buffett holdings at Berkshire Hathaway (BRKB). Buffett has been steadily buying up OXY stock over the past year, while paring its holding in oil major Chevron. As of the end of Q2, Berkshire owned 224.1 million shares of Occidental Petroleum, holding a stake of just over 25%. Buffett’s conglomerate owned 123.1 million shares of CVX stock. But with Chevron’s share price far above Occidental’s, Buffett still has a bigger investment in the Dow Jones energy giant.
CVX stock fell 3.8% last week to 162.23, undercutting the 50-day and 200-day lines as crude oil and gasoline futures tumbled.
OXY stock skidded 5.4% to 61.40 last week. But shares bounced 3.3% on Friday, nearly regaining the 200-day line. Occidental stock bounced with other Permian Shale energy plays in the wake of Exxon’s reported late-stage talks with Pioneer Natural Resources.
Crude oil futures jumped Monday morning, following huge Hamas attacks on Israel over the weekend.
Chevron stock rose 2% early Monday while OXY gained 3.5%.
Please follow Ed Carson on X/Twitter at @IBD_ECarson, Threads at @edcarson1971 and Bluesky at @edcarson.bsky.social for stock market updates and more.
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