How much cash did Occidental receive from selling OxyChem, and how much was left after taxes and costs?

Occidental received a cash purchase price of $9.7 billion, subject to customary adjustments. After about $206 million of transaction and closing costs, net cash proceeds were $9.494 billion. After roughly $1.744 billion of cash income tax payments, net after-tax proceeds were about $7.75 billion, according to the pro forma notes.

What did Occidental do with the proceeds?

The pro forma financials assume the company used the proceeds, together with other cash, to redeem $6.5 billion of face value Term Loan and Senior Notes, at an estimated cash cost of about $6.54 billion including premiums of about $37 million. Current maturities of long-term debt fall to about $151 million and long-term debt to about $15.9 billion on a pro forma basis.

How will the sale change Occidental's reported financial results going forward?

Beginning in Q4 2025, OxyChem is reported as discontinued operations, so continuing operations will reflect only the oil and gas, midstream and marketing businesses. Pro forma net sales are about $16.5 billion for the nine months ended September 30, 2025 versus $19.8 billion historically. Lower interest expense from the debt redemption partly offsets the loss of OxyChem's earnings.

Does Occidental still have liabilities tied to OxyChem?

Yes. Environmental Resource Holdings, LLC retained OxyChem's legacy tort claims and environmental liabilities primarily associated with historical operations outside the footprint of the sold operating facilities. Glenn Springs Holdings will manage remediation on ERH's behalf, and Occidental expects to spend funds on remediation over many years under approved workplans.

Are the pro forma figures a reliable guide to future results?

The pro forma statements are unaudited and illustrative only. They do not represent what results would have been had the transactions occurred on the assumed dates, nor are they necessarily indicative of future results. The debt redemption adjustments use an assumed weighted average interest rate of 5.97%, and the purchase price remains subject to customary post-closing adjustments.

OXY 8-K: Acquisitions & Dispositions & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed January 2, 2026. Cited figures are marked; the original filing is the authoritative source.

On January 2, 2026, Occidental (OXY) completed the sale of its chemical business, OxyChem, to Berkshire Hathaway for $9.7 billion^a in cash, subject to customary purchase price adjustments.

The transaction was previously announced via an 8-K on October 3, 2025 under a purchase agreement dated October 1, 2025. Occidental's pro forma balance sheet shows roughly $7.75 billion^b of net after-tax proceeds (after about $206 million of transaction costs and $1.74 billion of cash income taxes), which were used alongside cash on hand to redeem $6.5 billion of face value Term Loan and Senior Notes. Pro forma total stockholders' equity falls modestly to about $39.5 billion from $36.3 billion, driven by a retained earnings increase of roughly $3.4 billion net of the OxyChem book value removed, and debt declines by roughly $6.8 billion on a pro forma basis.

The pro forma income statements show that removing OxyChem reduces net sales by about $3.4 billion^c for the nine months ended September 30, 2025 and $4.7 billion for 2024, while the debt redemption lowers interest expense (at an assumed 5.97% weighted average rate). Pro forma income from continuing operations attributable to common stockholders is $1.53 billion (diluted EPS $1.50) for the nine months ended September 30, 2025, versus $1.72 billion historical (diluted EPS $1.68 for the same period on a historical basis, as presented). For 2024, pro forma diluted EPS from continuing operations is $2.69 versus $2.26 historically, though that comparison also reflects the CrownRock acquisition adjustments.

Investors should note that OxyChem is now reported as discontinued operations beginning in Q4 2025, and that ERH, a subsidiary, retains legacy tort and environmental liabilities that will require remediation spending over many years. Overall, the divestiture accelerates Occidental's strategy of strengthening the balance sheet and focusing on its oil and gas portfolio. Management characterized the deal as a step toward long-term value creation through high-return oil and gas assets, though the company's continuing earnings base shrinks and its exposure to commodity prices increases correspondingly.

02—Key points

Key Highlights

Completed sale of OxyChem to Berkshire Hathaway on January 2, 2026 for $9.7 billion in cash, subject to customary purchase price adjustments.
Net after-tax proceeds of approximately $7.75 billion after $206 million of transaction costs and $1.74 billion of cash income taxes, per pro forma notes.
Redeemed $6.5 billion of face value Term Loan and Senior Notes (about $6.54 billion cash including premiums), reducing debt and interest expense; pro forma long-term debt falls to about $15.9 billion from $20.8 billion.
OxyChem removed from continuing operations: pro forma 2024 net sales fall by $4.7 billion and nine-month 2025 net sales fall by $3.4 billion, reflecting a smaller but more focused oil and gas-centric earnings base.
Pro forma nine-month 2025 diluted EPS from continuing operations is $1.50, and pro forma 2024 diluted EPS is $2.69 (includes CrownRock acquisition adjustments), versus historical reported figures.
Environmental Resource Holdings (ERH), a subsidiary, retained OxyChem's legacy tort claims and environmental liabilities tied to historical operations outside the sold facilities, with remediation expected over many years.
Pro forma total equity is about $40.0 billion, with a retained earnings adjustment of about $8.4 billion from the transaction, per the pro forma balance sheet.

03—Questions

Frequently Asked Questions

How much cash did Occidental receive from selling OxyChem, and how much was left after taxes and costs?
Occidental received a cash purchase price of $9.7 billion, subject to customary adjustments. After about $206 million of transaction and closing costs, net cash proceeds were $9.494 billion. After roughly $1.744 billion of cash income tax payments, net after-tax proceeds were about $7.75 billion, according to the pro forma notes.
What did Occidental do with the proceeds?
The pro forma financials assume the company used the proceeds, together with other cash, to redeem $6.5 billion of face value Term Loan and Senior Notes, at an estimated cash cost of about $6.54 billion including premiums of about $37 million. Current maturities of long-term debt fall to about $151 million and long-term debt to about $15.9 billion on a pro forma basis.
How will the sale change Occidental's reported financial results going forward?
Beginning in Q4 2025, OxyChem is reported as discontinued operations, so continuing operations will reflect only the oil and gas, midstream and marketing businesses. Pro forma net sales are about $16.5 billion for the nine months ended September 30, 2025 versus $19.8 billion historically. Lower interest expense from the debt redemption partly offsets the loss of OxyChem's earnings.
Does Occidental still have liabilities tied to OxyChem?
Yes. Environmental Resource Holdings, LLC retained OxyChem's legacy tort claims and environmental liabilities primarily associated with historical operations outside the footprint of the sold operating facilities. Glenn Springs Holdings will manage remediation on ERH's behalf, and Occidental expects to spend funds on remediation over many years under approved workplans.
Are the pro forma figures a reliable guide to future results?
The pro forma statements are unaudited and illustrative only. They do not represent what results would have been had the transactions occurred on the assumed dates, nor are they necessarily indicative of future results. The debt redemption adjustments use an assumed weighted average interest rate of 5.97%, and the purchase price remains subject to customary post-closing adjustments.

04—Continue

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