Occidental Petroleum’s Transformation: Balancing Traditional Energy with Climate Technology
Strategic Financial Restructuring
Occidental Petroleum has made significant strides in its financial restructuring, announcing four divestures since April 2025 that generated approximately $950 million in proceeds. The company has completed multiple transactions totaling approximately $370 million, divesting non-core and select non-operated Permian Basin upstream assets.
A notable development includes an agreement with Enterprise Products Partners L.P. to sell certain gas gathering assets in the Midland Basin for $580 million, subject to regulatory approval. These transactions contribute to approximately $4 billion in total divestitures since December 2023’s CrownRock acquisition.
Climate Technology Investments
In a strategic move towards sustainable energy solutions, Occidental recently acquired Holocene Climate Corporation, a developer of direct air capture technology for carbon removal. This innovative technology is designed to efficiently capture carbon dioxide directly from the atmosphere, with a focus on improving efficiency and reducing capture costs.
While the company’s involvement in direct air capture technology has generated discussion among climate advocates, many view it as a promising solution for addressing excess atmospheric carbon, even as emissions decline.
Operational Structure
Occidental operates through three main segments: Oil and Gas, which focuses on exploration and production; Chemical, which manufactures and markets basic chemicals including chlorine and caustic soda; and Midstream and Marketing, which handles the purchase, marketing, gathering, processing, and transportation of various energy products.
Financial Outlook
The company maintains its commitment to shareholder returns, with a quarterly dividend of $0.24 payable on October 15, 2025. Financial analysts note that while dividends aren’t always predictable, the company’s current estimated yield of 2.09% on an annualized basis appears sustainable.
Occidental continues to focus on portfolio optimization and accelerating progress toward its medium-term balance sheet deleveraging target while maintaining its shareholder return pathway.
