What are Occidental's capital spending and production expectations for 2027, and how do they compare to 2026?

Occidental expects flat production in 2027 compared to 2026, with capital spending starting at $5.9 billion — the same upper end of its 2026 range of $5.5 billion to $5.9 billion — and full-year 2026 production forecast at up to 1.45 million barrels of oil equivalent per day.

Why is Occidental prioritizing debt reduction over share buybacks, and what is the significance of Berkshire Hathaway's preferred equity stake?

Occidental is prioritizing debt reduction — specifically targeting $10 billion in principal debt — ahead of redeeming Berkshire Hathaway’s preferred equity stake beginning in 2029; that stake carries an 8% annual dividend, which investors view as costly and a drag on the stock relative to peers, making its reduction a key step to strengthen the balance sheet and improve valuation.

Occidental sees flat spending, output in 2027, keeps focus on debt reduction

Aug 6, 2026

Occidental Petroleum forecasts flat production and $5.9 billion capital spending in 2027, prioritizing debt reduction ahead of redeeming Berkshire Hathaway's equity stake. The company aims to lower principal debt to $10 billion before targeting further net debt cuts.

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Occidental sees flat spending, output in 2027, keeps focus on debt reduction

Occidental sees flat spending, output in 2027, keeps focus on debt reduction

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