Occidental Cuts $5.8B Debt, Dividend Doubles as Stock Climbs 30%
Occidental Petroleum cut $5.8B of debt to $15.0B by selling OxyChem, lifting its stock roughly 30% year-to-date. Its quarterly dividend doubled to $0.26 with a 1.9% yield, positioning free cash flow to surge if oil reaches $100 per barrel.
1. Debt Reduction via OxyChem Sale
On January 2, 2026, Occidental closed the sale of OxyChem to Berkshire Hathaway, using proceeds to cut principal debt by $5.8 billion to $15.0 billion. This deleveraging improves financial flexibility but leaves Occidental with the weakest balance sheet among its large-cap peers.
2. Dividend Growth and Yield
Occidental’s quarterly dividend has risen from $0.13 in 2022 to $0.26 in March 2026, effectively doubling over four years. The current payout yields 1.9%, reflecting management’s commitment to returning capital even with a still-elevated debt load.
3. Leverage to Crude Prices
With West Texas Intermediate crude trading near $80 per barrel, Occidental’s stock has surged roughly 30% year-to-date, the strongest among major integrated producers. A sustained move toward $100 oil could drive a meaningful free cash flow expansion, but the company remains exposed to downside risk if prices retreat.