Occidental Petroleum (OXY) Q2 2025 earnings summary

Executive summary

• Generated $2.6 billion in operating cash flow for Q2 2025, with net income attributable to common stockholders of $288 million ($0.26 per diluted share) and adjusted income of $396 million ($0.39 per diluted share), despite lower oil prices year-over-year.

• Repaid $7.5 billion in debt over 13 months, reducing annual interest expense by $410 million, and announced nearly $4 billion in divestitures since January 2024, with $950 million announced since Q2 2025 start.

• Total company production reached 1,400 Mboed in Q2 2025, above guidance midpoint, with Rockies, Permian, and Oman outperformance offsetting Gulf of America declines.

• Advanced major low-carbon projects, including Stratos DAC and Pelican Hub, with key milestones achieved and most 2030 volumes contracted.

• Capital guidance midpoint for 2025 reduced by $100 million, with $500 million in cost reductions identified year-to-date.

Financial highlights

• Q2 2025 revenue was $6.46 billion, with net income of $288 million and adjusted income of $396 million.

• Operating cash flow before working capital was $2.6 billion; free cash flow before working capital was $700 million; unrestricted cash at quarter end was $2.3 billion.

• Earnings per diluted share were $0.26; adjusted EPS was $0.39.

• OxyChem pre-tax income was $213 million, below guidance due to weak PVC and caustic pricing; Midstream and Marketing segment generated $206 million above guidance midpoint.

• Capital expenditures for Q2 2025 were $2.0 billion.

Outlook and guidance

• Q3 2025 production guidance is 1,415–1,455 Mboed; full-year 2025 guidance is 1,400–1,430 Mboed, with strong U.S. onshore and Oman offsetting Gulf of America declines.

• 2025 capital guidance midpoint reduced by $100 million; $500 million in cost reductions identified year-to-date.

• OxyChem FY25 pre-tax income guidance is $800–$900 million.

• Estimated $700–$800 million cash tax reduction from new legislation, with 35% realized in 2025 and the remainder in 2026.

• Strategic priorities include maintaining production, growing dividends, prioritizing deleveraging until principal debt is below $15 billion, and advancing low-carbon businesses.