Occidental Petroleum Corp
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.86%.
Did OXY Beat Earnings? Q2 2025 Results
Occidental Petroleum delivered a convincing earnings beat in Q2 2025, posting adjusted EPS of $0.39 against a Wall Street consensus of $0.3125 — a 24.80% positive surprise — even as sharply lower commodity prices dragged revenue down 6.1% year-over-year to $6.46 billion, itself edging past the $6.29 billion estimate by 2.66%. The standout driver was operational discipline in a punishing price environment: WTI averaged just $63.74 per barrel while domestic natural gas prices collapsed 45% sequentially to $1.33/Mcf, yet total production of 1,400 Mboed exceeded guidance midpoints and lease operating expenses fell to $8.93 per BOE from $9.72 in Q1. The company's <a href="https://247wallst.com/investing/2026/02/19/occidental-jumps-as-5-8-billion-debt-cut-and-dividend-hike-impress-investors/">aggressive debt reduction push</a> remained front and center, with $3.0 billion repaid year-to-date and $950 million in fresh divestitures announced since Q2 began. Looking ahead, management trimmed the 2025 capital guidance midpoint by another $100 million, bringing cumulative cost reductions to $500 million from original targets — signaling continued efficiency gains even as the commodity backdrop remains uncertain.
- Total company production of 1,400 Mboed above midpoint of guidance
- Permian production of 770 Mboed
- Lower lease operating expenses of $8.93/BOE in Q2 vs $9.72/BOE in Q1
- Midstream and marketing exceeded high-end of guidance for pre-tax adjusted income
- Higher gas marketing margins from transportation capacity optimization in the Permian
- Higher sulfur prices at Al Hosn
- Improved export demand for caustic soda and PVC at OxyChem
- WES equity method investment income of $150 million
“Continued well performance leadership and a focus on enhanced operational efficiencies enabled us to generate strong financial results in the second quarter. By unlocking lower cost resources, accelerating our deleveraging efforts and advancing our strategic growth projects, we have positioned our portfolio to deliver long-term value.”
Occidental Petroleum CEO, on the earnings call
Forward Guidance & Outlook
Occidental is reducing the midpoint of 2025 capital guidance by $100 million and international operating costs by $50 million, driven by continued operational efficiency gains. Year-to-date, the company has realized or identified $500 million in capital and operating cost reductions from original guidance. The company continues its aggressive deleveraging program, having repaid $3.0 billion of debt year-to-date and announced $950 million of additional divestitures since the start of Q2 2025.
OXY YoY Financials
OXY Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.