Warren Buffett Just Give Occidental Petroleum a HUGE $10 Billion Boost. Should You Buy OXY Stock Here?

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The move is not just a headline-making M&A story; it’s a turning point in Occidental’s multi-year effort to clean up its debt-heavy balance sheet after blockbuster acquisitions.Occidental said it will apply $6.5 billion of the proceeds directly toward debt reduction, taking principal debt below the $15 billion target set after last year’s $12 billion CrownRock acquisition. That’s a big milestone for a company still carrying $23.3 billion in debt as of June.Nat-Gas Prices Pressured by Mid-October US WarmthCrude Prices Settle Higher as the Dollar Slips and Stocks RallyCrude Prices Rebound on Dollar Weakness and Strength in StocksOur exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today!The sale also tightens Berkshire’s grip on Occidental. Already its largest shareholder with a 27% equity stake, Buffett now adds a chemicals business to his empire, complementing Lubrizol and broadening exposure beyond oil and gas. For Occidental, the divestiture reflects a sharpened focus: oil and gas production, where 75% of 2024 earnings came from. CEO Vicki Hollub described the deal as a way to “unlock 20-plus years of low-cost resource runway” in core upstream operations.Valued at $43 billion by market cap, Occidental Petroleum Corporation is a global energy company with operations across the U.S., the Middle East, and North Africa. OXY operates through Oil and Gas, Chemical (OxyChem), and Midstream segments while also investing in low-carbon ventures. The company combines traditional energy production with carbon management to drive sustainable growth.On Oct. 2, Occidental Petroleum (OXY) shares dropped more than 6% following the announcement, highlighting ongoing investor caution related to the Berkshire Hathaway deal. Year-to-date (YTD), as of early October 2025, the stock has hovered in the mid-$40s, marking a 10% decline for the year. The weakness mirrors broader energy sector struggles, as oil prices fell to four-month lows in September on oversupply worries.OXY's valuation appears stretched, with a forward P/E of 20, significantly higher than the sector median of 13. This suggests the stock might be overpriced compared to its peers. However, its price-to-cash-flow ratio of 4 is lower than the sector's 5, indicating some undervaluation.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,715.79 +0.44 (+0.01%)Dow 3046,758.28 +238.56 (+0.51%)Nasdaq22,780.51 -63.54 (-0.28%)Russell 20002,476.18 +17.69 (+0.72%)VIX16.65 +0.02 (+0.12%)Gold3,908.90 +40.80 (+1.05%)PortfolioSign in to access your portfolioSign inTop gainersMFH Mercurity Fintech Holding Inc. 29.41 +7.80 (+36.09%)LAC Lithium Americas Corp. 9.04 +2.18 (+31.78%)QUBT Quantum Computing Inc. 24.62 +4.64 (+23.22%)RUM Rumble Inc. 8.56 +1.17 (+15.83%)USAR USA Rare Earth, Inc. 25.96 +3.25 (+14.31%)Top losersHIMS Hims & Hers Health, Inc. 52.54 -5.33 (-9.21%)RBLX Roblox Corporation 122.69 -10.81 (-8.10%)MENS Jyong Biotech Ltd. 48.00 -4.00 (-7.69%)PLTR Palantir Technologies Inc. 173.07 -13.98 (-7.47%)LVS Las Vegas Sands Corp. 50.97 -4.08 (-7.41%)Most activePLUG Plug Power Inc. 3.8100 +0.9800 (+34.63%)OPEN Opendoor Technologies Inc. 8.11 +0.10 (+1.25%)LAC Lithium Americas Corp. 9.04 +2.18 (+31.78%)SNAP Snap Inc. 8.54 +0.32 (+3.89%)RGTI Rigetti Computing, Inc. 40.06 +4.66 (+13.16%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersBTC-USD Bitcoin USD 123,650.54 +1,824.16 (+1.50%)PFF iShares Preferred and Income Securities ETF 31.76 +0.03 (+0.09%)ETH-USD Ethereum USD 4,531.61 +50.56 (+1.13%)XRP-USD XRP USD 2.98 -0.05 (-1.59%)LUMN Lumen Technologies, Inc. 6.56 +0.18 (+2.82%)Top economic events