NEW YORK, Jan 5, 2026, 04:57 ET — Premarket
- Occidental Petroleum shares were up about 1.7% in premarket trading, after ending Friday at $42.38.
- The company has closed the $9.7 billion cash sale of its OxyChem chemicals unit to Berkshire Hathaway.
- Traders are weighing weaker oil prices and looking ahead to Occidental’s next results, expected around Feb. 17.
Occidental Petroleum Corp shares rose 1.7% in U.S. premarket trading on Monday, as investors continued to digest the company’s $9.7 billion sale of its chemicals business and looked for clues on how the cash will be deployed.
The deal matters now because it sharpens Occidental’s focus on its oil-and-gas operations at a time when crude prices are struggling to find direction. The sale also gives management room to address leverage and shareholder returns — two themes that have dominated the stock’s debate since the company’s debt-heavy expansion in recent years.
Occidental said on Friday it completed the sale of OxyChem to Berkshire Hathaway for $9.7 billion in cash, subject to customary purchase-price adjustments. Chief Executive Vicki Hollub said the transaction “accelerates our strategy to strengthen Occidental’s balance sheet and focus” on its oil and gas portfolio. Oxy
A filing showed the company retained certain legacy tort claims and environmental liabilities tied to historical operations outside the footprint of the sold facilities. The filing was made on Form 8‑K, an SEC report companies use to disclose major events to investors.
Oil prices eased on Monday, keeping a lid on the broader energy complex even as geopolitics drove sharp intraday moves. Brent was down about 0.4% near $60.54 a barrel and U.S. West Texas Intermediate fell about 0.5% to $57.04, as ample global supply outweighed turmoil in Venezuela, Reuters reported.
Occidental closed Friday up 3.06% at $42.38, outperforming several oil-and-gas peers in a broadly positive session, though the stock remains about 20% below its 52-week high of $53.20, MarketWatch data showed.
Technicians are also watching where the stock settles around longer-term trend lines. MarketBeat data showed Occidental’s 50-day moving average near $41.19 and its 200-day moving average near $43.47 — levels that often act as support or resistance because many funds reference them in trading models.
On Wall Street, analyst sentiment remains mixed. MarketBeat’s compilation of analyst forecasts showed an average 12-month price target near $49.95, well above Friday’s close, even as rating mixes skew toward “hold” calls. MarketBeat
The risk case is straightforward: if oil prices weaken further, the company’s cash flow can compress quickly, limiting how much balance-sheet relief the divestiture ultimately delivers. Investors are also likely to scrutinize disclosures around retained legacy liabilities, which can create long-tailed costs that are hard to model.
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