Occidental Petroleum used its gushing free cash flow to strengthen its balance sheet and repaid a total of $4 billion in debt during the period. That included $1.1 billion of debt maturities, all of CrownRock's $1.2 billion of debt that it assumed, and $1.7 billion of the term loans it took out to help finance the CrownRock deal.

Occidental Petroleum raises guidance but remains limited by debt and high costs. See why OXY stock is still rated Underweight despite solid results.

The proceeds from the sales were used to help bring down Occidental's debt pile that has been fueled in part by a $12 billion purchase of shale producer CrownRock. Long-term debt at the end of the quarter was reduced to $25.46 billion, a fall of $4 billion ...