Occidental Petroleum (OXY) Q4 2023 earnings summary

Executive summary

• 2023 free cash flow was $5.5B; Q4 production reached 1,234 Mboed, and year-end proved reserves were 3.982B boe.

• Q4 net income attributable to common stockholders was $1.029B, or $1.08 per diluted share; adjusted income was $710M, or $0.74 per diluted share.

• Q4 operating cash flow was $3.2B; cash flow before working capital was $2.5B, and free cash flow before working capital was $1.1B.

• Priorities include sustaining production and the dividend, reducing debt, and selectively investing in cash-flow growth and low-carbon opportunities.

Financial highlights

• Q4 revenue was $7.529B; net income was $1.198B, including $1.029B attributable to common stockholders.

• After-tax items affecting comparability totaled $319M, primarily a $283M fair-value gain related to the Carbon Engineering acquisition.

• Q4 capital spending was $1.544B; $98M of noncontrolling-interest contributions brought net capital expenditures to $1.446B.

• FY 2023 share repurchases totaled $1.8B, and more than $1.5B, or 15%, of preferred equity was redeemed.

• Q4 OxyChem pretax income was $250M; Midstream and Marketing pretax income was $182M, including $149M of WES equity-method income.

Outlook and guidance

• FY 2024 production guidance is 1,220–1,280 Mboed, excluding CrownRock; guidance assumes Gulf of Mexico third-party outage production returns March 1, 2024.

• FY 2024 net capital expenditures are guided at $6.4–$6.6B, including $600M for emerging low-carbon businesses, net of noncontrolling-interest contributions.

• FY 2024 OxyChem pretax income guidance is $1.0–$1.2B; adjusted effective tax rate is at least 30%, and interest expense is guided at $0.9B.

• STRATOS is expected to become commercially operational in mid-2025; OxyChem projects are expected to deliver $300–$400M of annualized EBITDA from 2026 onward.