• Occidental Petroleum Corporation (NYSE:OXY) sells its chemical division, OxyChem, for $9.7 billion to focus on core operations.
• Scotiabank sets a price target of $47 for OXY, indicating a potential increase of about 5.16%.
• The company plans to use $6.5 billion from the OxyChem sale to pay off debt, aiming to strengthen its financial position and shareholder returns.

Occidental Petroleum Corporation (NYSE:OXY) is a major player in the oil and gas industry, focusing on exploration and production. The company also has interests in chemical manufacturing, although it recently sold its chemical division, OxyChem, for $9.7 billion. This move is part of a broader strategy to streamline operations and focus on core activities. Occidental competes with other energy giants like ExxonMobil and Chevron.

On October 9, 2025, Paul Cheng from Scotiabank set a price target of $47 for OXY. At that time, the stock was priced at $44.70, suggesting a potential increase of about 5.16%. This optimistic outlook comes despite the stock's recent dip to $44.78, a decrease of 0.59% or $0.27. The stock has fluctuated between $44.63 and $45.79 today, with a yearly high of $55.24 and a low of $34.78.

Occidental's recent $9.7 billion sale of OxyChem is a significant financial maneuver. The company is using $6.5 billion from this sale to pay off debt, which helps maintain its dividend payouts and share repurchase plans. This strategy aims to strengthen Occidental's financial position and return value to shareholders, even as the market initially reacted negatively to the sale.

The company's market capitalization stands at approximately $44.08 billion, reflecting its substantial presence in the industry. With a trading volume of 4,251,557 shares today, investor interest remains strong. Occidental's focus on debt reduction and shareholder returns could enhance its financial stability and appeal to investors, aligning with Scotiabank's positive price target.