• Occidental Petroleum stock is among today’s top performers. Why are OXY shares rallying?
Occidental shares surged in investor attention after the company completed the sale of its OxyChem division to Berkshire Hathaway for $9.7 billion.
As it reported its fourth quarter earnings, Occidental revealed it used the proceeds to cut roughly $5.8 billion in debt, bringing its principal debt down to about $15 billion and materially strengthening its balance sheet.
Occidental Slashes Debt With Berkshire Deal
The cleanup is already translating into shareholder rewards.
Occidental raised its quarterly dividend by more than 8% to 26 cents per share, continuing a broader shift from debt reduction toward capital returns.
Buffett Stake Keeps Investor Focus On Occidental
Berkshire Hathaway remains Occidental’s largest shareholder, holding roughly 28%–29% of the company and billions more in preferred shares and warrants. That massive stake — combined with Berkshire’s direct purchase of OxyChem — has kept investors focused on the possibility of deeper strategic involvement.
At the same time, Occidental is doubling down on its core oil and gas operations, particularly in the Permian Basin, which accounts for the bulk of its production and future growth plans. The company generated strong operating cash flow and continues targeting further debt reduction while maintaining disciplined capital spending.
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