Why Occidental Stock Popped Today | The Motley Fool
The Motley Fool
by newsfeedback@fool.com (Joe Tenebruso)February 20, 2026
AI-Generated Deep Dive Summary
Occidental Petroleum (OXY) stock surged today, jumping over 9%, as investors reacted positively to its fourth-quarter earnings report. The rally was driven by the company's announcement of a significant dividend increase and its improved financial stability following the sale of its chemical manufacturing business, OxyChem. These moves have not only boosted shareholder returns but also demonstrated Occidental's commitment to strengthening its balance sheet.
The sale of OxyChem generated substantial cash proceeds, enabling Occidental to reduce its debt by $5.8 billion since mid-December. With this newfound financial flexibility, the company announced a 8% increase in its quarterly dividend, raising it to $0.26 per share. The dividend will be paid on April 15 to shareholders of record as of March 10. This move signals Occidental's focus on returning more value to its investors while maintaining strong financial health.
In addition to the dividend hike, Occidental highlighted its strong cash flow generation in the fourth quarter. Despite lower crude oil and natural gas prices, the company reported solid operational performance, producing an average of 1,481 thousand barrels of oil equivalent per day. Its operating cash flow came in at $2.6 billion, with free cash flow reaching $1 billion. CEO Vicki Hollub emphasized the importance of operational excellence and cost efficiency in driving these results.
This financial turnaround underscores Occidental's ability to adapt and thrive in a challenging energy landscape. The combination of debt reduction, dividend increases, and robust cash flow generation positions the company for long-term growth and investor confidence. For those interested in finance, this highlights how strategic restructuring and value creation can lead to significant stock appreciation and improved returns for shareholders.
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Originally published on The Motley Fool on 2/20/2026