Occidental Pete — Financial Results
Occidental Sold Its Chemical Division to Berkshire Hathaway for $9.7 Billion
Occidental completed the sale of its entire chemical business (OxyChem) to Berkshire Hathaway on January 2, 2026, generating an estimated after-tax gain of $3.2 billion. The deal reshapes the company significantly — OxyChem's results are now treated as discontinued operations (meaning they are separated from the main business figures in financial statements). Oxy plans to use the proceeds primarily to pay down debt, with a target of getting total debt to approximately $14.3 billion before returning more cash to shareholders.
Lower Oil Prices Pushed Revenue and Earnings Down Meaningfully
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| WTI Oil Price ($/barrel) | $64.81 | $75.72 | -14% |
| Total Net Sales | $21.6B | $22.0B | -2% |
| Oil & Gas Segment Earnings | $4.6B | $5.2B | -12% |
| Net Income (common stockholders) | $1.65B | $2.38B | -31% |
| Earnings Per Share (diluted) | $1.61 | $2.44 | -34% |
The roughly 14% drop in WTI oil prices (the main U.S. oil benchmark) was the primary driver of weaker results across the board. Higher production volumes — partly from the 2024 CrownRock acquisition — cushioned the blow but could not fully offset lower prices.
Production Grew 8%, Largely Due to the CrownRock Acquisition
| Region | 2025 (Mboe/d) | 2024 (Mboe/d) | Change |
|---|---|---|---|
| Permian Basin | 786 | 664 | +18% |
| Total U.S. | 1,202 | 1,099 | +9% |
| Total Worldwide | 1,434 | 1,327 | +8% |
Mboe/d (thousand barrels of oil equivalent per day) measures total production including oil, natural gas liquids, and gas. The 18% jump in the Permian Basin reflects a full year of output from CrownRock assets, which were only partially owned for part of 2024. Operating costs per barrel fell from $9.75 to $8.94, showing the company is extracting more efficiently even as it produces more.
Debt Reduction Is the Central Financial Priority Right Now
Oxy paid down approximately $4.0 billion of debt during 2025, then used OxyChem sale proceeds to retire an additional $5.4 billion after year-end. As of the filing date, principal debt stands at roughly $15 billion — still a large load but with almost nothing due until 2030 and beyond. The company has explicitly stated that further debt reduction to ~$14.3 billion comes before meaningful share buybacks (repurchasing company stock), though the existing $1.2 billion remaining on its buyback program remains authorized.
STRATOS Direct Air Capture Plant Is Built and Waiting to Operate
Oxy completed construction of STRATOS, its first commercial-scale direct air capture (DAC) facility — a plant that pulls CO2 directly from the atmosphere — in Ector County, Texas. The company obtained the required injection permits and expects to begin sequestering (permanently storing underground) captured CO2 in 2026. This is backed by a joint venture with BlackRock, which contributed $200 million in 2025. Whether this becomes a meaningful revenue stream depends heavily on demand from industrial emitters and the continuation of tax credits under recent U.S. legislation.