Occidental Cuts $5.8B Debt, Raises Dividend 8% as Shares Rally 30% YTD
Occidental Petroleum’s stock has climbed 30.42% YTD to $53.62, enabled by a $5.8 billion debt reduction to $15.0 billion and an 8% dividend increase to $0.26 per share. The $9.7 billion sale of OxyChem to Berkshire Hathaway closed January 2, bolstering Occidental’s balance sheet and freeing capital.
1. Year-to-Date Stock and Market Performance
Occidental Petroleum’s shares have surged 30.42% YTD to $53.62, trading near 52-week highs despite oil’s recent pullback to $85–88 per barrel. Berkshire Hathaway now holds approximately 29% of Occidental following additional equity purchases in 2025–2026.
2. Debt Reduction and Dividend Increase
Occidental used proceeds to cut principal debt by $5.8 billion, lowering total liabilities to $15.0 billion. The company raised its quarterly dividend by 8% to $0.26 per share, marking a doubling of payouts over the past four years and a record date of March 10.
3. OxyChem Divestiture Details
The $9.7 billion sale of Occidental’s industrial chemicals unit, OxyChem, to Berkshire Hathaway closed on January 2, 2026, when WTI crude was near $55 per barrel. Proceeds from the divestiture were allocated to balance sheet strengthening and capital flexibility.
4. Geopolitical Volatility and Strategy
WTI crude prices swung from a 12-month low of $55 in December 2025 to highs above $119 during Strait of Hormuz tensions before retreating. Occidental’s focus on resilient free cash flow and flexible capital programs reflects management’s adaptation to oil market swings.