Why Occidental Stock Popped Today

Stockholders have larger dividends headed their way.Shares of Occidental (OXY +9.47%) rallied on Thursday, as investors applauded the oil and gas producer's fourth-quarter earnings report. By the close of trading, Occidental's stock price was up more than 9%. Image source: Getty Images. Bolstering the balance sheet Occidental completed the sale of its chemical manufacturing business, OxyChem, on Jan. 2. The proceeds enabled the energy supplier to pay down its debt by $5.8 billion since mid-December. Occidental is also using its newfound financial flexibility to increase its cash returns to shareholders. The company boosted its quarterly dividend by 8% to $0.26 per share. The dividend is payable on April 15 to shareholders of record as of March 10. ExpandNYSE: OXYOccidental PetroleumToday's Change(9.47%) $4.46Current Price$51.57Key Data PointsMarket Cap$51BDay's Range$49.67 - $52.2252wk Range$34.78 - $52.22Volume2.1MAvg Vol11MGross Margin32.21%Dividend Yield1.86% Bountiful cash flow generation The energy provider produced an average of 1,481 thousand barrels of oil equivalent per day in the fourth quarter, driven by the strong performance of its Permian and Rockies operations. Despite a decline in realized crude oil and natural gas prices, Occidental continued to crank out cash. Its operating and free cash flow came in at $2.6 billion and $1 billion, respectively. "Our emphasis on operational excellence and cost efficiency drove meaningful production and operating expense outperformance during the fourth quarter," CEO Vicki Hollub said.Read NextFeb 16, 2026 •By Matt DiLalloShould You Buy Occidental Petroleum Stock Before Feb. 18?Feb 6, 2026 •By Matt DiLalloWhy Occidental Petroleum Stock Rocketed More Than 10% in JanuaryJan 6, 2026 •By James Brumley3 Stocks Greg Abel, Warren Buffett's Successor, May Be Watching in 2026Oct 29, 2025 •By Keith SpeightsIs This Texas-Based Company a No-Brainer Buy for Energy Investors?Oct 16, 2025 •By Joe TenebrusoThe Smartest Warren Buffett Stocks to Buy Right NowOct 8, 2025 •By Daniel FoelberIs Occidental Petroleum Stock a Buy After Its $9.7 Billion Deal With Warren Buffett-Led Berkshire Hathaway?About the AuthorJoe Tenebruso is a contributing Motley Fool stock market analyst with more than 3,000 financial bylines to his name. Joe was an investment analyst for Stock Advisor, Income Investor, Crypto Society, and other top-rated investing services. He also managed Tier 1 Investments, a market-crushing real-money portfolio with 24.58% annualized returns. Joe graduated summa cum laude from Rutgers University with a Bachelor of Science in Finance.tmfguardianX@Tier1InvestorStocks MentionedOccidental PetroleumNYSE: OXY$51.57 (+9.47%) $+4.46*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.