"The OxyChem sale closed on January 2, 2026, generating $9.7 billion in cash proceeds, while Occidental used the proceeds to cut principal debt by $5.8 billion since mid-December 2025, bringing the total to $15.0 billion. That deleveraging gives the company breathing room at lower oil prices."
"Overall, Q4 2025 WTI averaged $59.14/bbl, dragging realized crude prices down 9% quarter-over-quarter to $59.22/bbl, yet Occidental still generated $963 million in free cash flow for the quarter."
"CEO Vicki Hollub acknowledged the tension directly: 'We remain focused on generating resilient free cash flow and maintaining flexibility in our capital and development programs to support near- and long-term value creation.'"
Occidental Petroleum has experienced significant stock appreciation in early 2026, with retail sentiment reaching very bullish levels on Reddit. The January 2026 OxyChem divestiture generated $9.7 billion in cash proceeds, enabling the company to reduce debt by $15.0 billion since mid-December 2025. This deleveraging substantially improves financial flexibility despite lower oil prices, with WTI averaging $59.14/bbl in Q4 2025. The company maintained $963 million in free cash flow during the quarter despite challenging commodity prices. Berkshire Hathaway's ~29% ownership stake provides psychological support for investors. Carbon capture initiatives remain capital-intensive and dependent on constructive oil price environments. Management emphasizes maintaining flexibility in capital programs while generating resilient free cash flow.
Read at 24/7 Wall St.
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