OXY(US:OXY) Youtubeยท2025-10-02 12:21Acquisition Overview - Berkshire Hathaway is acquiring Occidental Chemical for an all-cash transaction valued at $9.7 billion, marking its largest purchase since 2022 [1] Financial Strategy - Occidental plans to allocate approximately $6.5 billion of the cash from the acquisition towards debt reduction, aiming to bring its debt below the target of $15 billion, which will subsequently reduce interest payments by $350 million [2][7] - The acquisition will enable Occidental to restart its share repurchase program, enhancing shareholder value [3] Portfolio Enhancement - The acquisition follows Occidental's previous acquisition of Crown Rock, which established the Midland Basin as a core area and allowed for the development of a strong position in the Barnett area [4][6] - Occidental's portfolio now includes decades of development opportunities in oil and gas, with advanced technology and processes being applied to improve it further [5] Production and Resource Growth - Since 2015, Occidental has increased its U.S. production from 50% to 83%, focusing on high-quality areas such as the Permian, DJ, Powder River, and Gulf of Mexico [10] - The company has also increased its oil and gas resources from 8 billion barrels of oil equivalent in 2015 to 14 billion, with expectations for further increases by year-end [11] Market Performance - Over the past five years, Occidental's stock has appreciated by 390%, although it has seen a decline of nearly 10% over the last year [8][9] - The company believes that resolving its debt issue will unlock stock value and encourage both existing and new shareholders to invest [10]