Berkshire’s $9.7B OxyChem Deal and Occidental’s 30% YTD Stock Rally
Berkshire Hathaway closed its $9.7 billion OxyChem acquisition on January 2, 2026, when WTI crude traded near $55 per barrel, and now owns roughly 29% of Occidental Petroleum. Occidental cut $5.8 billion of debt to $15 billion, boosted its dividend by 8% to $0.26, and its shares gained 30.4% YTD.
1. OxyChem Acquisition Completed at Low Commodity Prices
Berkshire Hathaway finalized its $9.7 billion acquisition of Occidental Petroleum’s industrial chemicals unit, OxyChem, on January 2, 2026, when West Texas Intermediate crude was trading near $55 per barrel. The timing secured a high-quality asset at depressed valuations, aligning with Buffett’s strategy to buy productive businesses during commodity weakness.
2. Occidental’s Financial Restructuring and Dividend Growth
Occidental used OxyChem sale proceeds to cut debt by $5.8 billion to roughly $15 billion and boosted its quarterly dividend by 8% to $0.26 per share, marking its highest dividend growth in four years. Its stock has rallied 30.4% year-to-date, reflecting strengthened balance-sheet flexibility and free cash flow resilience.
3. Berkshire’s Portfolio Impact and Market Performance
Berkshire Hathaway’s stake in Occidental now stands at approximately 29%, enhancing exposure to the energy sector while its own Class B shares remain essentially flat for the year after delivering a compounded 90.3% return over five years. Buffett’s long-held philosophy of owning productive assets through geopolitical volatility appears validated by recent crude price swings.