Occidental Petroleum completed the divestiture of its OxyChem chemical division to Berkshire Hathaway for $9.7 billion, marking a significant restructuring of the oil and gas company's balance sheet. The Houston-based energy producer deployed the sale proceeds to reduce total debt by $5.8 billion, bringing outstanding debt levels to approximately $15 billion. The transaction strengthens Occidental's financial position amid volatile commodity markets and represents a strategic focus on core upstream operations.
Following the divestiture, Occidental increased its quarterly dividend by more than 8 percent to 26 cents per share, signaling management confidence in future cash generation and returning capital to shareholders. The dividend raise reflects improved operational efficiency and financial flexibility resulting from the debt reduction.
Berkshire Hathaway's acquisition of OxyChem reinforces the investment firm's position as Occidental's dominant shareholder, holding approximately 28-29 percent of outstanding equity alongside significant preferred shares and warrants. The deal underscores Berkshire's strategy of acquiring established businesses with steady cash flows while enabling Occidental to streamline its portfolio and reduce financial leverage.