Occidental Petroleum Corp
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −5.50%.
Did OXY Beat Earnings? Q4 2025 Results
Occidental Petroleum delivered a mixed but strategically consequential fourth quarter, posting adjusted earnings of $0.31 per diluted share on revenue of $5.42 billion as the completion of the OxyChem divestiture in early January 2026 reshapes the company's financial profile. On a GAAP basis, the company recorded a net loss of $68 million, or $0.07 per diluted share, narrowing considerably from a $297 million loss in Q4 2024, with the gap between reported and adjusted results driven largely by charges tied to the OxyChem transaction. The sale enabled $5.80 billion in debt reduction since mid-December 2025, bringing total principal debt reduction to $15.00 billion, a deleveraging effort management framed as central to sustaining free cash flow flexibility. Operationally, total production of 1,481 Mboed exceeded the top of guidance, though sharply lower commodity prices, with WTI averaging $59.14 per barrel, compressed oil and gas pre-tax income to $700 million from $1.30 billion the prior quarter. Looking ahead, Occidental raised its quarterly dividend by more than 8% to $0.26 per share and signaled continued focus on capital efficiency across its leaner, upstream-focused portfolio.
- Total company production of 1,481 Mboed exceeded high end of guidance, led by Permian and Rockies contributions
- Midstream and marketing pre-tax adjusted income exceeded high end of guidance
- Lower realized commodity prices across all products drove decline in oil and gas pre-tax income
- Average worldwide realized crude oil prices decreased 9% QoQ to $59.22/bbl
- Average domestic realized natural gas prices fell 24% QoQ to $1.12/Mcf
- Higher gas margins from Permian transportation capacity optimization
- Reduced long-haul crude transportation costs
- Higher sulfur prices at Al Hosn
- Lease operating expenses declined to $8.48/BOE in Q4 from $8.93/BOE in Q3
- Organic reserves replacement ratio of 107% with extensions and discoveries of 340 million BOE mainly in the Permian Basin
“Our emphasis on operational excellence and cost efficiency drove meaningful production and operating expense outperformance during the fourth quarter. The quality of our assets and the exceptional execution by our teams enabled us to surpass full-year guidance across our oil and gas and midstream businesses. With our enhanced balance sheet following the sale of OxyChem, we remain focused on generating resilient free cash flow and maintaining flexibility in our capital and development programs to support near- and long-term value creation.”
Occidental Petroleum CEO, on the earnings call
Forward Guidance & Outlook
Following the completion of the OxyChem sale in January 2026, Occidental's enhanced balance sheet — with $5.8 billion in debt reduction since mid-December 2025 and total principal debt reduction to $15.0 billion — positions the company to focus on generating resilient free cash flow and maintaining flexibility in capital and development programs. The company aims to support near- and long-term value creation while continuing operational excellence and cost efficiency across its oil and gas and midstream businesses.
OXY YoY Financials
OXY Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.