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Oxy to Pay Buffett's Berkshire $200MM in Dividends as Financials Improve

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   |    Monday,September 21,2020

In a move that bodes well for its financial future, Occidental Petroleum plans to pay Warren Buffett and his company $200 million in preferred share dividends, according to a report by Bloomberg.

This equates to a per-share value of approximately $2,000.

Buffett's flagship company Berkshire Hathaway Inc. invested $10 million in the E&P company back in April 2019.  The investment helped Oxy seal its $38 billion mega-acquisition of Anadarko Petroleum, but left the company with massive debts to contend with (Oxy took on an additional ~$19 billion worth of debt due to the deal).

Currently, Oxy's debt load (which currently amounts to ~$35 billion) is more than triple its market cap of $10.5 billion.

This move hints that Oxy is on the road to improving its finances. The company has employed several initiatives to stabilize its balance sheet, including:

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