Occidental Petroleum (OXY) Q3 2025 earnings summary

Executive summary

• Announced sale of OxyChem to Berkshire Hathaway for $9.7 billion, marking a strategic transformation to focus on oil and gas, with proceeds primarily allocated to debt reduction and shareholder returns.

• Q3 2025 delivered record operational performance, with total production reaching 1,465 Mboed, including record Permian output of 800 Mboed and strong cost efficiencies.

• Net income attributable to common stockholders was $661 million ($0.65 per diluted share), with adjusted income of $649 million ($0.64 per diluted share).

• Resource potential doubled since 2015 to 16.5 billion BOE, with 83% of production now domestic.

• OxyChem sale expected to strengthen the balance sheet, accelerate deleveraging, and unlock high-return opportunities in core oil and gas business.

Financial highlights

• Generated $3.2 billion in operating cash flow and $1.5 billion in free cash flow before working capital in Q3 2025.

• Quarterly revenue was $6.6–$6.7 billion; net income was $661 million.

• Capital expenditures for Q3 were $1.7–$1.8 billion; unrestricted cash balance stood at $2.2 billion as of September 30, 2025.

• $1.3 billion in debt repaid during Q3, reducing principal debt to $20.8 billion.

• Lease operating expense per BOE at lowest level since 2021, at $8.11 per BOE.

Outlook and guidance

• Q4 2025 production guidance: 1,440–1,480 Mboed, with Permian at 795–815 Mboed; OxyChem pre-tax income guidance for Q4: ~$140 million.

• Full-year pre-tax income from midstream/marketing expected to be $400 million above original guidance.

• 2026 capital program expected at $6.3–$6.7 billion, with flexibility to adjust based on macro conditions; production expected to be flat to up 2% in 2026, driven by unconventional Permian.

• OxyChem to be classified as discontinued operations from Q4 2025.

• Strategic priorities include maintaining production, growing dividend, and advancing carbon management.