Occidental Petroleum at a Strategic Turning Point After OxyChem Divestiture

Occidental Petroleum (OXY) appears to be entering a pivotal phase in its corporate evolution following the sale of its chemical unit, OxyChem, in a deal valued at approximately $9.7 billion to Berkshire Hathaway. Occidental plans to use roughly $6.5 billion of the proceeds to aggressively reduce debt—which has been a drag on its balance sheet since its acquisition of Anadarko Petroleum—and target a net debt level below $15 billion, potentially saving around $350 million annually in interest expenses. Management forecasts lower capital expenditures in 2026, coupled with flat to modest production growth, enabling the company to reallocate more capital toward high‑return oil and gas operations, opportunistic share buybacks, and possibly redeeming preferred equity in the future. These moves have contributed to analysts reaffirming a “Strong Buy” stance on Occidental’s stock, as the company sharpens its operational focus and improves financial flexibility. Despite the optimism, Occidental remains exposed to oil market volatility and geopolitical risks, such as disruptions tied to Venezuela’s oil sector. Still, the deleveraging strategy and a leaner portfolio position Occidental as one of the more compelling U.S. upstream energy investment opportunities in the current market environment. #OccidentalPetroleum #OxyChemDeal #EnergyStocks #OilIndustry #SlimScan #GrowthStocks #CANSLIM