Company Overview

Occidental Petroleum Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of oil and gas properties in the United States and internationally. Occidental Petroleum Corporation was founded in 1920 and is headquartered in Houston, Texas.

We are one of the largest oil and gas producers in the U.S., including a leading producer in the Permian and DJ basins, and offshore Gulf of Mexico. Today Occidental Petroleum has a market capitalization of ‪$45.05 Billion‬, which increased by 2.54% over the last week.

Business Segments

It operates through three segments: Oil and Gas, Chemical, and Midstream and Marketing.

Oil and Gas Segment

The Oil and Gas segment explores for, develops, and produces oil and condensate, natural gas liquids (NGLs), and natural gas. Net production averaged 1.327 million barrels of oil equivalent per day in 2024 at a ratio of roughly 52% oil and natural gas liquids and 48% natural gas.

Chemical Segment

The Chemical segment manufactures and markets basic chemicals, including chlorine, caustic soda, chlorinated organics, potassium chemicals, ethylene dichloride, chlorinated isocyanurates, sodium silicates, and calcium chloride; and vinyls comprising vinyl chloride monomer, polyvinyl chloride, and ethylene. Our chemical subsidiary OxyChem manufactures the building blocks for life-enhancing products.

Midstream and Marketing Segment

The Midstream and Marketing segment purchases, markets, gathers, processes, transports, and stores oil, condensate, NGLs, natural gas, carbon dioxide, and power. Our midstream and marketing segment provides flow assurance and maximizes the value of our oil and gas, and includes our Oxy Low Carbon Ventures subsidiary, which is advancing leading-edge technologies and business solutions that economically grow our business while reducing emissions.

Financial Performance

The company's financial performance shows significant revenue and earnings, with a strong focus on cash flow generation and debt reduction.

2024 Full Year Performance

- Revenue: $26.73 billion (a decrease of -5.42% compared to the previous year's $28.26 billion)

- Earnings: $2.41 billion (a decrease of -35.79%)

- Free Cash Flow: $4.9 billion (enabling significant dividend payments and a 22% increase in quarterly dividends)

- Total Company Production: Record 1.33 million BOE per day, exceeding guidance.

Recent Quarterly Performance

- Q2 2025 Results:

- Revenue: $6.46 billion (up from forecasted $6.24 billion)

- Earnings Per Share: $0.39 (surpassing forecast of $0.34)

- Operating Cash Flow: $2.6 billion

- Free Cash Flow (before working capital): $700 million

- Q3 2024 Results:

- Net Income Attributable to Common Stockholders: $964 million ($0.98 per diluted share)

- Adjusted Income Attributable to Common Stockholders: $977 million ($1.00 per diluted share)

Key Financial Metrics

- Market Capitalization: $45.05 Billion

- FY2024 Revenue: $26.73 Billion

- FY2024 Earnings: $2.41 Billion

- FY2024 Free Cash Flow: $4.9 Billion

- Q2 2025 Revenue: $6.46 Billion

- Q3 2024 Net Income: $964 Million

- Year-End Proved Reserves: 4.6 billion BOE

- Debt-to-Equity Ratio: 0.88

- Current Ratio: 1.05

- Dividend Yield (2024): 1.78%

- Dividend Payout Ratio (2024): 36.00%

Strategic Initiatives and Operations

Debt Reduction Focus

The company achieved its near-term debt repayment target of $4.5 billion seven months ahead of schedule, significantly improving its balance sheet. Occidental has been proactive in addressing its total debt load, retiring $2.3 billion year-to-date with only approximately $300 million in maturities over the next 14 months. This progress in debt reduction is crucial for improving the company's financial health and flexibility.

Operational Efficiency Improvements

Occidental announced a reduction in capital expenditures by $200 million for 2025, a 3% decrease at the midpoint of planned spending. This reduction is attributed to greater drilling efficiency in the Permian Basin, where the company has achieved a 15% improvement, allowing them to reduce rig count by two.

Reserve Position

The company increased its year-end proved reserve balance to 4.6 billion BOE, marking a company record. This was achieved with an all-in reserves replacement ratio of 230%.

Carbon Management and Sustainability

We are dedicated to using our global leadership in carbon management to advance a lower-carbon world. The company is advancing carbon capture initiatives and developing technologies that reduce emissions while growing the business economically.

Dividend Information

Occidental Petroleum Corporation's dividend yield was 1.78% in 2024, with a payout ratio reaching 36.00%. The company demonstrates a commitment to shareholder returns through consistent dividend growth and share repurchases.

Market Position and Geographic Diversification

Occidental Petroleum's diversified portfolio is a key asset, helping to balance out regional volatility. Operations in Oman and the Rockies have compensated for weaker results in the Permian and Gulf of Mexico areas. This geographic diversification allows OXY to maintain stability in its overall performance despite challenges in specific regions.

Occidental Petroleum remains focused on maximizing profitability, operational excellence, and maintaining its position as a leading energy company. The company is also transitioning toward lower-carbon solutions through technological innovation and strategic portfolio management.