Occidental sees flat spending, output in 2027, keeps focus on debt reduction

Occidental CEO Richard Jackson said the company is on track to increase its free cash flow this year by more than $1.2 billion and that a "clear pathway" exists to add more than $4 billion in annual cash flow by 2030 even before considering the benefit of higher oil prices.

That additional cash will be used to reduce debt and strengthen the balance sheet ahead of Occidental's planned redemption of Berkshire Hathaway's preferred equity stake beginning in 2029, Mathew said.

Share buybacks will be a lower priority until the company reduces the preferred equity, he added.

Berkshire's investment requires Occidental to pay an 8% annual dividend, a higher payout than the typical junk bond now offers. Investors have said that the expensive equity has been a drag on Occidental's stock compared with its peers.