Suncor Energy is rallying after Warren Buffett's Berkshire Hathaway disclosed a $300 million stake

Paul Morigi/Getty ImagesWarren Buffett speaks onstage during Fortune’s Most Powerful Women Summit – Day 2 at the Mandarin Oriental Hotel on October 13, 2015 in Washington, DC.
  • Warren Buffett’s Berkshire Hathaway disclosed on Thursday that it amassed a $US300 million stake in Suncor Energy in the fourth quarter.
  • The Canadian oil and gas producer missed on both the top and bottom lines in the fourth quarter.
  • Berkshire also added StoneCo and Red Hat to its portfolio in the time period.
  • Watch Suncor Energy, StoneCo and Red Hat trade live.

Suncor Energy was up 3.10% to $US33.56 apiece on Friday after Warren Buffett’s Berkshire Hathaway on Thursday disclosed that it bought shares of the Canadian oil and gas producer in the fourth quarter.

Berkshire added Suncor Energy to its portfolio and bought 10.8 million shares in the three months ended December 31, which were worth $US300 million, according to regulatory documents filed Thursday. A back of the envelope calculation shows the stake was established at an average price of $US27.8 – 17% below where shares were trading on Friday.

Suncor Energy on February 5 reported worse-than-expected financial results for the fourth quarter. The company said it generated $US8.56 billion in revenue, missing the $US10.09 billion that was expected by Wall Street analysts, according to Bloomberg data. Its adjusted net income came at $US580 million, while analysts were expecting $US814 million.

In the fourth quarter, Berkshire also initiated positions in StoneCo(14.2 million shares, ~$US260 million), a Brazilian credit card processor that went public in October and cloud-software company Red Hat (4.2 million shares, ~$US730 million). In October, IBM announced that it had struck a deal to acquire Red Hat for $US34 billion.

StoneCo was up 3.24%, and Red Hat was up 0.29% on Friday.

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