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(Bloomberg) — Occidental Petroleum Corp. may pause redeeming Berkshire Hathaway Inc.’s preferred equity in the third quarter as lower oil prices limit its ability to return money to shareholders. Most Read from Bloomberg QQQ Churns in Late Hours on Apple, Amazon Earnings: Markets Wrap Trump Cites Self Incrimination Concern in Lawsuit Against Cohen Fitch’s US Credit Downgrade Sparks Criticism Along With Unease The Strange Story Behind ‘Baldur’s Gate 3,’ One of the Year’s Biggest Releases Canada PM Justin Trudeau Splits With Wife Sophie Gregoire Occidental’s dividends and buybacks to ordinary shareholders may fall below the $4-a-share trigger required to repurchase Berkshire’s preferred equity in the current quarter, Chief Financial Officer Rob Peterson said on a call with analysts. The Houston-based oil company has this year redeemed about 12% of Warren Buffett’s initial $10 billion investment, which helped fund the producer’s acquisition of Anadarko Petroleum Corp. in 2019. Chief Executive Officer Vicki Hollub is keen to pay back the investment as soon as possible because it carries an 8% annual dividend, making it an expensive part of Occidental’s capital structure. “In the last few months, they’ve reduced our preferred, which we don’t like obviously,” Buffett said at Berkshire’s annual meeting […]
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