Occidental Petroleum Corporation (OXY)

Occidental Petroleum's stock price declined by 15.92% between October 28, 2024, and October 24, 2025. A significant event was the announcement of Berkshire Hathaway's $9.7 billion all-cash acquisition of Occidental's chemical business, OxyChem, expected to close in the fourth quarter of 2025. This deal is expected to reduce Occidental's debt below its target of $15 billion. In its third-quarter 2025 earnings report, Occidental beat EPS expectations but slightly missed revenue estimates, and analyst ratings have shown conflicting sentiments.

Demand for Occidental Petroleum's products exhibits seasonality, particularly for its oil and natural gas offerings. Natural gas and heating oil typically see increased demand during the colder months due to heating needs, while crude oil demand is influenced by the summer driving season. Refineries often undergo maintenance in the spring and fall, which can temporarily reduce crude oil demand. The company's overall commodity price sensitivity is considered low due to a significant portion of its cash flows coming from contracted assets. Demand for specialty chemicals is driven by broader industrial and economic activity, with growth expected in sectors like cosmetics, semiconductors, and clean energy.

Occidental Petroleum Corp. is an international energy company with a diversified business model that includes hydrocarbon exploration and production, petrochemical manufacturing, and carbon management. Its core business segments are Oil and Gas Exploration and Production (E&P), Chemical Manufacturing (OxyChem), and Midstream and Marketing. The company explores, develops, and produces crude oil, natural gas, and natural gas liquids (NGLs) in its E&P segment. Through OxyChem, Occidental manufactures and markets various chemicals used in industries such as construction, automotive, and consumer goods. The company is also investing in carbon management and lower-carbon solutions, including carbon capture, utilization, and storage (CCUS) technologies.

Occidental Petroleum has a significant operational presence across several key regions. In the United States, its oil and gas operations are concentrated in the Permian Basin, the Rockies, and the Gulf of Mexico. Internationally, the company has hydrocarbon exploration activities in the Middle East, specifically in Oman, Qatar, and the United Arab Emirates. Its petrochemical manufacturing facilities, under OxyChem, are located in the U.S., Canada, and Chile. Historically, Occidental has also had ventures in South America, including Peru, Venezuela, and Bolivia, and previously operated in Libya.

Occidental Petroleum's brand reputation has been tied to its strategic direction in energy transition and its operational performance. The company has emphasized its commitment to sustainability goals, aiming for net-zero emissions in its operations by 2050, supported by investment in carbon capture, utilization, and storage (CCUS) technologies. The recent sale of OxyChem to Berkshire Hathaway is a strategic move aimed at debt reduction and focusing on its core oil and gas and carbon management businesses.

Occidental Petroleum is primarily owned by institutional shareholders, who hold 76.19% of the company. Major institutional owners include Berkshire Hathaway Inc., Vanguard Group Inc., Dodge & Cox, BlackRock, Inc., and State Street Corp. Insiders own 9.09% of the company, and retail investors hold 14.72%. Carl C. Icahn is the largest individual shareholder, owning 73.63 million shares, representing 7.48% of the company. Berkshire Hathaway Inc. is the largest overall shareholder, holding 26.91% of the shares.