Berkshire to Buy Occidental’s Petrochemical Unit for $9.7B; Price Targets Cut
Berkshire Hathaway agreed to acquire Occidental Petroleum’s petrochemical business for $9.7B. Susquehanna cut Occidental Petroleum’s price target to $51 from $55, citing a 2026 WTI forecast lowered to $60 per barrel, while Morgan Stanley trimmed its target to $50.
1. Berkshire Hathaway Acquires Petrochemical Business
Berkshire Hathaway agreed to purchase Occidental Petroleum’s petrochemical unit for $9.7 billion, marking a significant divestiture for Occidental and a strategic acquisition for the conglomerate. The transaction shifts downstream operations away from Occidental, bolstering liquidity and refocusing its asset portfolio.
2. Susquehanna Lowers Price Target on Oversupply Concerns
Analyst Charles Minervino at Susquehanna reduced Occidental’s price target to $51 from $55, citing a near-term oil oversupply due to the unwinding of OPEC production cuts and soft demand growth. The firm also cut its 2026 West Texas Intermediate price assumption to $60 per barrel from $65.
3. Morgan Stanley Sees Lighter Cash Flows Ahead
Morgan Stanley trimmed its price target on Occidental to $50 from $51 with an Equal Weight rating, expecting relatively clean fourth-quarter operational updates but lighter cash flow from lower price realizations. Occidental is set to release its fourth-quarter earnings after the market close on February 18.