Occidental Petroleum Corporation (NYSE:OXY) shares are trading higher today. The company disclosed a $3 billion reduction in principal debt in the third quarter of 2024, driven by strong organic cash flow and proceeds from divestitures.

Following the anticipated closing of the $818 million Barilla Draw divestment, Occidental plans to use the proceeds for debt repayments. This will bring its year-to-date debt reductions to over $3.8 billion, meeting about 85% of its $4.5 billion near-term debt reduction target.

Occidental Petroleum raised $700 million last week through the sale of 19.5 million common units in Western Midstream Partners, LP (NYSE:WES). The company has now reached approximately $1.7 billion in completed or announced divestments for 2024.

The proceeds from its divestiture program will be used for debt reduction, while the company will also advance deleveraging through free cash flow.

Vicki Hollub, President and CEO, said, "We are pleased with the rapid and significant progress of our deleveraging program along with enhancements made to our already premier portfolio. By the end of the third quarter, we expect to achieve nearly 85% of our near-term $4.5 billion debt reduction commitment."

Earlier this month, Occidental completed a $12 billion acquisition of CrownRock, enhancing the Permian portfolio with 170 Mboed high-margin production.

Investors can gain exposure to the OXY stock via Texas Capital Funds Trust Texas Capital Texas Oil Index ETF (NYSE:OILT) and First Trust Nasdaq Oil & Gas ETF (NASDAQ:FTXN).

Price Action: OXY shares are up 0.51% at $57.91 at the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo via Shutterstock

• Stuck In Neutral: Occidental Petroleum Beat EPS Consensus But Faces Slowing Business, Analyst Says