HOUSTON, March 10, 2026, 2:03 PM CDT
Occidental Petroleum narrowed the gap to its debt-reduction target after a March 9 filing confirmed that bond-term amendments linked to its $1.2 billion cash tender are now in place. Shares of OXY slipped roughly 3.5% to $53.08 by Tuesday afternoon. 1
The move is significant for Occidental, which is still unwinding the debt load from its $55 billion Anadarko takeover alongside the $12 billion CrownRock purchase. Just last month, executives told investors they’re aiming to get principal debt down to about $14.3 billion by 2026. As of Dec. 31, long-term debt sat at $20.63 billion. 2
Occidental on March 5 raised its buyback cap to $1.2 billion, up from $700 million, targeting outstanding debt for cash in a tender offer. The company later tweaked the 6.125% notes due 2031, slashing lender protections and trimming the minimum redemption notice period to five business days. By the early deadline, investors had tendered $843.3 million in 2031 notes, $335.2 million for the 2030s, and $21.5 million of the zero-coupon 2036s. The offer, fully subscribed, stays open until March 19. Only the 2031 notes received enough backing for the covenant changes. 3
During the Feb. 19 earnings call, Chief Executive Vicki Hollub told investors, “Just this morning, we announced a tender offer that is expected to further reduce principal debt to $14.3 billion.” Chief Financial Officer Sunil Mathew pegged principal debt at $15 billion following the OxyChem sale, adding it was moving toward the new target. 4
Occidental last month pointed to the OxyChem sale—wrapped up Jan. 2—as trimming debt by $5.8 billion since mid-December and paving the way for an 8% bump in its dividend to 26 cents a share. Berkshire Hathaway, which struck a $9.7 billion deal for OxyChem in October, is betting the move will help Occidental sharpen its focus on oil and gas while accelerating debt paydown. 5
Oil stocks dropped across the board Tuesday. Shares of Exxon Mobil slipped roughly 1.0%, while Chevron slid 1.3%. ConocoPhillips gave up 2.1%.
That lines up with sentiment spreading through the sector. “The market is anticipating a swift end” to the Strait of Hormuz disruption, said James West, who leads energy and power research at Melius Research, on Monday. The move’s showing up most in short-term crude prices, not further-out contracts. 6
Oil remains unpredictable. Brent crude slid 12.6% to $86.50 a barrel as of 12:58 p.m. EDT, but Simon Flowers at Wood Mackenzie cautioned that bringing shuttered production back online “could take weeks or even longer.” Hollub, for her part, said last month, “We are going to need $70 oil to continue to grow.” If crude prices linger at these lower levels, Occidental’s next phase of balance-sheet repair—once this benchmark is reached—gets murkier. 7
