Occidental Petroleum (OXY) Q3 2025 earnings summary

Executive summary

• Announced sale of OxyChem to Berkshire Hathaway for $9.7 billion, marking a strategic milestone to focus on oil and gas and accelerate debt reduction and shareholder returns.

• Q3 2025 operating cash flow reached $3.2 billion before working capital, with net income attributable to common stockholders of $661 million ($0.65 per diluted share).

• Total company production reached 1,465 Mboed, exceeding guidance, with record Permian output and strong performance in all major regions.

• Portfolio is now 83% domestic, with a 30+ year development runway and significant resource expansion, especially in the Permian.

• Revenues for Q3 2025 were $6.6–$6.7 billion, down year-over-year.

Financial highlights

• Operating cash flow before working capital was $3.2 billion; free cash flow before working capital was $1.5 billion.

• Capital expenditures for Q3 2025 were $1.7–$1.8 billion; net capital expenditures for the nine months ended September 30, 2025, were $5.7 billion.

• Debt repayment of $1.3 billion in Q3 reduced principal debt to $20.8 billion; $3.6 billion repaid year-to-date.

• Adjusted diluted EPS was $0.64; reported diluted EPS was $0.65 for Q3 2025.

• Unrestricted cash balance stood at $2.2 billion as of September 30, 2025.

Outlook and guidance

• Raised full-year guidance for oil and gas and midstream/marketing segments due to Q3 outperformance.

• Q4 2025 production guidance: 1,440–1,480 Mboed, with Permian at 795–815 Mboed.

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

• 2026 capital spending expected between $6.3–$6.7 billion, with flexibility to adjust based on macro conditions.

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