Why Warren Buffett's Favorite Energy Stock Is Sliding Premarket Today

Occidental Petroleum Corp. (NYSE:OXY) shares pulled back in premarket trading on Thursday following the release of its quarterly results.

The Houston, Texas-based integrated oil company reported second-quarter adjusted earnings of $0.68 per share on revenue of $6.73 billion. This compares to the year-ago earnings of $3.16 per share and revenue of $10.74 billion.

Analysts, on average, estimated EPS of $0.76.

The declines reflected a fall in energy prices in the second quarter. The WTI-grade crude oil fell 6.7% in the second quarter.

Occidental noted that worldwide realized crude oil prices fell by 1% quarter-over-quarter to $73.59 per barrel. Average global production came in at 1,218 thousand billion barrels of oil equivalent (boed), exceeding the mid-point of the guidance by 42 million boed, it added.

In the 10-Q filed with the SEC, the company said it redeemed preferred shares worth $522 million held by Warren Buffett's Berkshire Hathaway, Inc. (NYSE:BRK) (NYSE:BRK).

The preferred shares worth $10 billion were offered to Berkshire to raise finances for Occidental’s 2019 acquisition of peer Anadarko Petroleum.

Berkshire has been accumulating shares of Occidental, and with a series of transactions in late June, the Buffett-led company increased its stake in the energy producer to 25%.

In premarket trading, the stock was down 2.39% at $60, according to Benzinga Pro data.

See Also: Best Energy Stocks

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