Occidental Petroleum (OXY) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered record U.S. oil and gas production, with total output averaging 1,412 Mboed, driven by strong new well performance and the successful integration of CrownRock assets, which closed August 1, 2024.

• Operating cash flow reached $3.1 billion before working capital and $3.8 billion overall, with $1.5 billion in free cash flow before working capital, exceeding guidance in all segments.

• Nearly 90% of the short-term debt reduction target was achieved, with $4.0 billion of debt repaid in Q3, and $1.7 billion in divestitures completed year-to-date.

• Advanced low-carbon initiatives, including progress on the Stratos DAC facility and a $500 million DOE grant for a South Texas DAC project.

• Q3 2024 net income attributable to common stockholders was $964 million, or $0.98 per diluted share, with adjusted income of $977 million, or $1.00 per diluted share.

Financial highlights

• Q3 2024 free cash flow before working capital was $1.5 billion; unrestricted cash at quarter end was $1.8 billion.

• Adjusted diluted EPS was $1.00; reported diluted EPS was $0.98 for Q3 2024.

• Revenue for Q3 2024 was $7.2 billion, with net sales flat year-over-year.

• OxyChem segment delivered $304 million pre-tax income, outperforming guidance.

• Midstream and marketing segment generated $631 million pre-tax income, including $490 million in gains from WES unit sales.

Outlook and guidance

• Raised full-year guidance for all business segments due to Q3 outperformance and improved Q4 expectations; Q4 total company production guidance midpoint set at 1.45 million BOE/day.

• Permian production guidance for Q4 2024 increased, reflecting CrownRock contribution.

• 2025 capital plans include $450 million for Low Carbon Ventures and $900 million for OxyChem.

• Strategic priorities include maintaining production, growing dividends, investing in energy, chemicals, and low-carbon businesses, and deleveraging to below $15 billion principal debt.

• Cash on hand, operating cash flows, and available credit are expected to cover near-term debt maturities and capital needs.