Occidental Petroleum shares fall 5.3%, most since July 15

Occidental Petroleum shares fall 5.3%, most since July 15

Occidental Petroleum (OXY) shares experienced a significant drop on September 12, 2025, falling by 5.3%, the most substantial decrease since July 15. The stock closed at $48.10, representing a 1.33% increase from the previous trading session, but it was not enough to keep up with the broader market's performance. The S&P 500 gained 0.26%, the Dow rose by 0.15%, and the tech-heavy Nasdaq appreciated by 0.48% .

Over the past month, Occidental Petroleum's shares have decreased by 0.29%, underperforming the Oils-Energy sector's gain of 4.06% and the S&P 500's gain of 2.87% . The company's upcoming earnings report, scheduled for release soon, is expected to show earnings per share (EPS) of $0.49, a 51.00% drop compared to the same quarter of the previous year. Revenue projections are estimated at $6.64 billion, down 7.18% from the year-ago period .

The stock's recent performance has been influenced by the company's decision to sell its OxyChem petrochemical division to Berkshire Hathaway for $9.7 billion in cash. The deal, expected to close in the fourth quarter of 2025, will help Occidental reduce its debt to below $15 billion, as the company plans to use $6.5 billion of the proceeds for this purpose .

Analysts remain cautious about Occidental's stock, with a "Hold" consensus from 22 analysts, including one sell, 17 hold, and four buy ratings. The average price target is $54.32, implying a potential upside of 13.8% from the current price . Several banks have adjusted their targets recently, with Mizuho lowering its target to $58 (Neutral) on September 15, and UBS raising its target to $46 (Neutral) .

The energy market context has been challenging, with crude prices dropping to four-month lows at the start of October. Brent fell to approximately $65.35 per barrel, and U.S. West Texas Intermediate (WTI) dropped to approximately $61.78, amid concerns about oversupply and potential government shutdowns .

Occidental's recent performance and the upcoming earnings report will be closely monitored by investors. The company's focus on cost discipline, deleveraging, and asset sales, as well as its investment in low-carbon technologies, will be key factors influencing its stock price in the coming months.