$Occidental(OXY)$ $WTI Crude Oil - main 2511(CLmain)$ $Chevron(CVX)$ π₯π°π Occidentalβs $10B OxyChem Exit: Debt Reset or Full Transformation? π¨β‘οΈπ
Iβm convinced Occidental Petroleum is standing at one of the most pivotal moments in its history. A $10B+ OxyChem sale, coupled with relentless debt reduction and a bullish technical structure, is more than housekeeping. Itβs a statement of intent. Backed by Buffett, OXY is deliberately reshaping its future and positioning itself for the next commodity cycle with sharper focus and stronger capital discipline.
π° A Major Portfolio Shift
Occidental Petroleum ($OXY) is reportedly close to selling its OxyChem unit for $10B+, per the Financial Times. This would be the companyβs largest divestiture ever, creating one of the worldβs biggest independent petrochemical firms.
β’ Valuation: $10B+ potential sale price
β’ OxyChem: plastics, pharma, water-treatment chemicals leader
β’ Comes after $12B CrownRock shale acquisition and $950M Permian divestiture
β’ Over $7.5B in debt repaid since July 2024
This is more than a divestiture; itβs a strategic reset. OXY is streamlining, paying down leverage, and repositioning into hydrocarbons and carbon management.
β‘ Why It Matters
1. Deleveraging: Sale proceeds can slash debt and fortify the balance sheet.
2. Strategic pivot: Exiting non-core chemicals to double down on oil, gas, and carbon capture.
3. Capital discipline: Better positioned for the next commodity cycle.
4. Buffettβs conviction: Berkshireβs heavy ownership is a strong vote of confidence.
For buyers, OxyChem means scale in chemicals. For OXY, itβs about transformation.
π Technical Setup: Pattern Trading in Motion
Short-term (1H Keltner + Bollinger + EMAs):
β’ Price at $47.51 (+1.02%), bouncing off anchored VWAP zones tied to the 2020 low.
β’ EMA cluster (13, 21, 55) supporting higher lows.
β’ Compression signaling breakout potential toward $49β$50.
Medium-term (Weekly chart β Pattern Trading):
β’ Clear falling wedge structure forming.
β’ Historical wicks off anchored VWAP discount zones.
β’ Pattern trading projects a stair-step reversal path into $56β$60, with potential extensions to $65+.
This aligns with a classic pattern trading reversal higher. The wedge, debt reduction narrative, and Buffett backing all converge into a bullish inflection zone.
π The Big Question
Is this Oxyβs final step in the long post-Anadarko reset, or the opening move in a much larger transformation into a leaner, carbon-cycle giant?
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Trade like a boss! Happy trading ahead, Cheers, BC πππππ
@Tiger_comments @TigerStars @TigerPM @TigerObserver @1PC
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- Cool Cat WinstonΒ·09-29TOPπ Iβm struck by how you framed OxyChemβs $10B exit as part of a bigger reset. The way OXY is shrinking debt reminds me of how CVX leverages scale in the Permian. The wedge reversal into $56β$60 looks cleaner now that the chemicals unit is coming off the books.2Report
- Hen SoloΒ·09-29TOPThe contrast you laid out hit me hard because OXYβs pulling back from chemicals while peers like CVX and XOM are doubling down. That pivot plus over $7.5B repaid debt since last year makes the reversal higher to $65+ more believable on the technical side.2Report
- Tui JudeΒ·09-29TOPπ’οΈ I like how you tied Buffettβs role to capital discipline. If OXY really pulls $10B+ from OxyChem, that balance sheet shift could be just as important as XOM leaning into chemicals. The falling wedge pattern trading setup feels like a textbook bullish pivot point.2Report
- Kiwi TigressΒ·09-29TOPThat breakdown was fire because Iβm seeing OXY finally ditch chemicals to lean into oil and carbon and thatβs huge when you line it up with the wedge pattern. Iβm vibing with the $56β$60 target since it feels like the reset traders have been waiting on2Report
- QueengirlypopsΒ·09-29TOPIβm actually hyped on this because OXY paying down $7.5B debt while unloading OxyChem just screams leaner cycle play and Buffett staying strapped in makes it feel real. That wedge reversal into $60 plus looks like the kind of breakout that runs π₯ π§π§π§2Report
- Valerie ArchibaldΒ·09-29TOPWith economic growth and AI demands we are going to need EVERY type of energy , solar, hydro, gas, thermal, and yes OIL.1Report
- Enid BerthaΒ·09-29TOPoil + commodities + gold are bullish for the next market scope.1Report
- LouisLowellΒ·09-29TOPImpressive insight on OXYβs transformation1Report