Occidental said it intends to use $6.5 billion of proceeds to reduce debt, aiming to lower principal obligations below $15 billion following its late-2023 acquisition of CrownRock. The company noted that the divestment is designed to reinforce its balance sheet while sharpening its focus on oil and gas development, particularly in the Permian basin.
“This transaction strengthens our financial position and catalyzes a significant resource opportunity we’ve been building in our oil and gas business for the last decade. I’m incredibly proud of the impressive work the team has done to create this strategic opportunity that will unlock 20+ years of low-cost resource runway and deliver meaningful near and long-term value,” said Vicki Hollub, President and Chief Executive Officer. “OxyChem has grown under Occidental into a well-run, safely operated business with best-in-class employees, and we are confident the business and those employees will continue to thrive under Berkshire Hathaway’s ownership.”
“Berkshire is acquiring a robust portfolio of operating assets, supported by an accomplished team,” added Greg Abel, Vice Chairman of Non-Insurance Operations at Berkshire. “We look forward to welcoming OxyChem as an operating subsidiary within Berkshire. We commend Vicki and the Occidental team for their commitment to Occidental’s long-term financial stability, as demonstrated by their plan to use proceeds to reinforce the company’s balance sheet.”
Occidental will retain OxyChem’s legacy environmental liabilities through a subsidiary, with Glenn Springs Holdings continuing to manage ongoing remediation projects.
The transaction marks Berkshire’s largest acquisition since its $13.7 billion purchase of Alleghany Corp. in 2022, and further underscores Occidental’s shift away from petrochemicals amid efforts to manage debt and sustain upstream output in maturing shale plays.
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