Occidental Petroleum Repays $15.6B Debt and Secures 10% Exxon Deepwater Stake After Downgrade
OXY•HSBC downgraded Occidental Petroleum’s rating from Buy to Sector Weight, highlighting its valuation in line with industry while the stock trades above its 200-day moving average following a 42% six-month gain. Occidental has paid down $15.6 billion of debt while adding a 10% Exxon deepwater stake and acquiring CrownRock L.P.
1. Analyst Downgrade and Stock Momentum
In May 2026, HSBC downgraded Occidental Petroleum’s rating from Buy to Sector Weight, signaling expectations of performance in line with industry averages. The stock trades above its 200-day moving average after a 42% gain over six months, reflecting underlying technical strength despite the rating change.
2. Strategic Acquisitions Expand Operations
Occidental acquired a 10% stake in Exxon Mobil’s deepwater exploration block offshore Trinidad and Tobago and completed its purchase of CrownRock L.P. to expand its footprint in the Permian Basin. These moves aim to accelerate oil and gas output growth across key basins.
3. Debt Reduction Strengthens Balance Sheet
The company has repaid $15.6 billion of corporate debt this year, bolstering its balance sheet and reducing interest obligations. This debt reduction is part of a broader financial management plan to improve credit metrics and free up cash for further investments.
4. Geopolitical Risks Threaten Sulfur Sales
Ongoing geopolitical tensions in the Middle East pose logistics challenges that could disrupt sulfur sales, a non-core revenue stream. Management is monitoring potential supply chain interruptions that might affect profitability in that segment.
