- Occidental Petroleum Corporation (NYSE:OXY) sells its chemical business, OxyChem, to Berkshire Hathaway for $9.7 billion, aiming to enhance shareholder value and improve financial health.
- Roth Capital maintains a Neutral rating on OXY, with a slight increase in the price target to $46.
- The company’s stock experienced a decrease of 3.95%, trading at $45.84, amidst broader strategic shifts and market fluctuations.
Occidental Petroleum Corporation, trading as NYSE:OXY, is a major player in the oil and gas industry. The company is involved in the exploration and production of oil and natural gas, as well as the manufacturing of chemicals. Recently, Roth Capital maintained a Neutral rating for OXY, advising investors to hold the stock. At the time, the stock was priced at $45.75, with a revised price target of $46.
Occidental’s recent $9.7 billion deal with Berkshire Hathaway to sell its chemical business, OxyChem, is a significant development. This transaction is expected to bring value to shareholders, as highlighted by CEO Vicki Hollub on CNBC’s ‘Squawk Box’. The cash from this deal will be used strategically, potentially aiding in debt reduction and strengthening the company’s financial position.
The sale of OxyChem to Berkshire Hathaway is a strategic move for Occidental, allowing the company to focus more on its core oil and gas operations. This divestment is part of Occidental’s broader strategy to manage its debt, which has been a concern for investors. The deal underscores Berkshire’s interest in the chemical sector, marking a significant shift in Occidental’s business structure.
Currently, OXY’s stock is trading at $45.84, reflecting a decrease of 3.95% or $1.89. The stock has seen fluctuations, with a daily low of $45.57 and a high of $47.91. Over the past year, OXY has experienced a high of $56.49 and a low of $34.78. The company’s market capitalization stands at approximately $45.12 billion, with a trading volume of 10.68 million shares.
