Occidental Petroleum (traded as OXY) is an independent exploration and production company with significant operations throughout the U.S., Latin America, and the Middle East. As of 2025, the company possesses net proved reserves of almost 4 billion barrels of oil equivalent and had a reported net production of about 1.3 million barrels a day, comprising approximately 52% oil and natural gas liquids and 48% natural gas.
Occidental's operations include both upstream oil and gas exploration operations along with its sizable chemicals business, OxyChem, which produces a variety of petrochemical products. The company is listed on the New York Stock Exchange and continues to be a prominent player in the energy space, in part due to its scale of infrastructure and the geographic diversity of its operations.
Stock performance and market position
During 2025, Occidental Petroleum’s stock has faced volatility influenced by fluctuating oil prices, debt obligations from major acquisitions, and corporate restructuring efforts. As of early October 2025, OXY shares traded near $44.32, down approximately 7% on the day, reflecting softness in energy markets and persistent concerns over the company’s debt load exceeding $24 billion primarily due to the 2019 acquisition of Anadarko Petroleum.
Despite near-term headwinds, technical indicators such as a recent “golden cross” formation — where the 50-day moving average rose above the 200-day moving average — suggest a potential bullish momentum for the stock tied to improving market sentiment. The average daily trading volume exceeded 37 million shares, indicating high investor interest and liquidity.
OxyChem division and Berkshire Hathaway transaction
Occidental's petrochemical division, OxyChem, has been a primary driver of revenue and profitability, generating approximately $5 billion in revenue for the 12-month period ending in June of 2025. This segment produces critical chemical products used primarily in agriculture, automotive, construction, and packaging sectors.
In late 2025, Occidental reached an agreement to divest OxyChem to Warren Buffett's Berkshire Hathaway for roughly $9.7 billion. This divestment is seen as a strategic maneuver designed to reduce Occidental's enormous debt as the company shifts its focus toward upstream oil and gas operations. The sale represents Berkshire Hathaway's second major investment in the chemicals sector in almost 15 years, and increases the company's stake in Occidental, of which it owns approximately 28%, worth $13 billion. The sale has been received with mixed reviews; although the transaction significantly lowers debt, analysts expressed questions regarding the timing and price, and the stock was impacted negatively in the short term.
Financial metrics and dividend profile
Occidental Petroleum’s financial health shows signs of stabilization amid efforts to manage leverage and maintain operational efficiency. Key valuation metrics reflect a price-to-earnings (P/E) ratio near 12, and a dividend yield hovering around 2.1% as of mid-2025. The company maintains competitive returns on assets and equity, though these figures have fluctuated in recent years due to market volatility and acquisition-related costs. Investors watch closely the company’s capital allocation strategy balancing debt repayment, shareholder returns, and investment in exploration and production growth areas. Although analysts’ consensus ratings currently skew toward hold or neutral, some bullish momentum exists based on anticipated debt reduction and stable commodity prices.
Outlook and investment considerations
Occidental Petroleum Corporation, listed under the ticker OXY on the New York Stock Exchange, continues to be an important organization in the global energy industry, with a rich portfolio of oil, gas, and chemicals operations. As of October 2025, some company developments have placed Occidental in a position to benefit from strong, steady, and evolving global demand for hydrocarbons while also optimizing its portfolio of assets and improving operational efficiency after the sale of its chemicals subsidiary, OxyChem.
Throughout 2025, Occidental's stock has fluctuated in relation to developments in the broader energy markets, and developments specific to the company. As of October 2, 2025, the stock closed at about $44.37 per share, down roughly 7% on that day. Nonetheless, technical indicators recently show some encouraging signs of a potential upward swing. Specifically, a "golden cross" occurred when Occidental's 50-day moving average crossed above its 200-day moving average, suggesting building momentum among investors with improved probabilities of OXY's price movement over the medium-term. Likewise, trading volume has been very active, on many days exceeding 30 million shares, indicating strong market liquidity and interest with OXY stock. Generally, analysts have a consensus rating of "hold" with price targets generally between $50-$54 per share based on market activity with what they view as some uncertainties and moderate upside.
As of mid-2025, the financial aspects of Occidental Petroleum are characterized by a company that stands between addressing legacy debt issues while managing performance. Following the acquisition of Anadarko for $57 billion in 2019, Occidental rose to more than $24 billion in total debt, presenting a significant leverage dilemma that it is in the process of addressing. Occidental's sell-off of OxyChem, completed in late 2025, to Warren Buffett's Berkshire Hathaway for a total profit of $9.7 billion is a key event that is intended to deleverage Occidental’s balance sheet and direct capital into upstream exploration and production.
While the sell-off has elicited some analyst concerns regarding timing and pricing, the agreement somewhat explicitly anchors Berkshire Hathaway's deeper commitment to Occidental because the company already owned about 28%, or over $13 billion worth of stock in Occidental. In the short term, this transaction alleviates some key financial pressures and provides for Occidental to focus resource allocation on its core business (i.e. productive operations in the Permian Basin, a large and inexpensive oil-producing region that is essential to U.S. energy).
From an operational perspective, Occidental Petroleum continues to utilize technology and scale to enhance efficiencies and cut costs within its oil and gas businesses. It reports almost 4 billion barrels of oil equivalent in net proved reserves and an average production exceeds 1.3 million barrels per day. These properties include diversified investments situated in the United States, Latin America, and the Middle East, with the Permian Basin viewed as a growth engine, underpinning low cost production and a rich resource base for years to come.
Occidental Petroleum's strategy relies on selective capital expenditures, affording the business the ability to maintain a disciplined financial approach despite the cyclicality of commodity prices. Capital allocation remains a key priority, maintaining the balance between returning dividends to shareholders—currently yielding approximately 2.1%—investing in the growth of the business, while repaying debt. The trailing twelve months' earnings per share (EPS) are approximately $1.7 and the price-to-earnings ratio is around 26, suggesting investors are pricing value conservatively due to uncertainty on the near-term outlook, then somewhat more aggressively based on anticipated longer-term outcomes.
Market analysts have identified a set of risks and opportunities directing Occidental's stock journey. These risks and opportunities include commodity price variability due to global tension, OPEC+ decisions on production, and shifts in global energy demand. The ongoing transition pressures towards renewables and decarbonization also presents a tactical obstacle, as fossil fuels are caught in regulatory and societal crosshairs. Occidental's executive leadership has made a renewed commitment post-OxyChem to returning to its roots. In many ways, the company is reasserting itself as an operator with an environment of stability arising from its midstream and marketing integrated businesses. Even though Occidental is experiencing these dynamic risk and opportunity variables, Berkshire Hathaway is forwardly investing alongside Occidental. On the surface, Buffett's presence creates extra comfort in how Occidental will manage finances and governance.
In addition to the stock price and overall performance, stakeholders remain focused on Occidental Petroleum's business decision-making and corporate governance developments. Notably, with current equity holdings, Berkshire Hathaway's Warren Buffett plays a key role as a Powell shareholder and purchaser of OxyChem-related businesses. In that role, market observers are careful to see how management responds to shareholder equity management, decision making, and capital deployment. They anticipate the two companies may derive value in business strategy, risk management, and future operating stability through this partnership. Nevertheless, beyond equipment and disposal discussion, it is crucial for Occidental leaders to communicate timelines decisively for debt paydown, production efforts, and dividends to preserve investor trust. Overall, the company's reported returns on equity near 13.8%, however, and net margin of 8.8% provide some level of confidence in profitability, relative to other energy companies moving in time through their respective dynamics.
Occidental Petroleum is still a significant bellwether stock in the energy sector, representing a complex crossroad of traditional hydrocarbons, corporate finance reorganization, and industry innovation. The stock will be subject to the global economy, climate change regulatory reaction, technological advancements in productivity, and changing energy consumption patterns. Investors who are thinking about OXY will need to weigh the company’s ability to generate dividend income and price appreciation against the risks associated with the commodity market and sector transitions. In summary, Occidental’s profile involves an appealing fundamental and strategic divestment consistently linked with strong ownership presence that will require nimbleness in management in a changing global energy landscape.
Occidental Petroleum's stock profile in 2025 reflects a company in offensive strategic transition, leveraging asset rationalization and capital restructuring to reposition itself in a volatile market. The sale of OxyChem chemicals business to Berkshire Hathaway provides the pivotal point, allowing Occidental to enhance flexibility operationally. The positive outlook based on commodity pricing and geopolitical uncertainty fosters caution for their near-term outlook and optimism, but the observed technical analysis and analyst perspective is upward and cautious for the medium term. OXY's upstream oil and gas production role, combined with its diversified businesses and improved balance sheet, continues to present it as a closely monitored, strategically relevant, and legitimate energy sector bellwether stock.