Occidental's OXY Shares Rise 2.47% on $950M Permian Basin Sales Hit 122nd in Market Activity

Occidental (OXY) shares rose 2.47% on August 7, 2025, with a trading volume of $0.85 billion, up 32.61% from the previous day, ranking 122nd in market activity. The stock’s performance coincided with the company’s announcement of $950 million in proceeds from four asset sales in the Permian Basin, aimed at reducing debt. These transactions, including a $580 million deal with Enterprise Products Partners, are part of a broader $4 billion divestiture strategy since the 2023 CrownRock acquisition.

The company has repaid $7.5 billion in debt since July 2024, leveraging proceeds from non-core asset sales to strengthen its balance sheet. CEO Vicki Hollub emphasized the strategic focus on portfolio optimization, stating the moves enhance shareholder value and position Occidental to pursue high-grade opportunities. The debt reduction has also lowered annual interest expenses by $410 million, reflecting improved financial flexibility amid ongoing cost-cutting measures and operational efficiency gains.

The strategy aligns with Occidental’s broader efforts to reduce leverage and capitalize on carbon management initiatives, including its Stratos direct air capture project. With most of Stratos’s carbon removal volumes through 2030 already contracted, the company is positioning itself to benefit from growing demand for carbon dioxide removal (CDR) credits. These developments, coupled with tax incentives from recent legislation, are expected to further bolster cash flow and support long-term value creation.

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