Occidental Petroleum (OXY) Q4 2024 earnings summary

Executive summary

• Achieved $4.9 billion in free cash flow in 2024, enabling $800 million in dividends and a 22% dividend increase.

• Met near-term debt repayment target of $4.5 billion, seven months ahead of schedule, and announced $1.2 billion in planned divestitures for 2025.

• Delivered record total company production of 1.33 million BOE/day in 2024 and 1,463 Mboed in Q4, exceeding guidance.

• Closed Crown Rock acquisition, adding scale and high-margin inventory in the Midland Basin.

• Advanced major projects, including STRATOS and Battleground, and direct air capture initiatives to drive future growth.

Financial highlights

• Generated $4.9 billion in free cash flow for 2024; Q4 free cash flow was $1.4 billion.

• Paid $800 million in common dividends and increased the quarterly dividend by 9% to $0.24 per share for 2025.

• Capital spend was $6.8 billion in 2024, with 2025 capital plan set at $7.4–$7.6 billion.

• Fourth quarter adjusted profit was $0.80 per diluted share; reported loss of $0.32 per share due to a $1.1 billion after-tax environmental liability.

• Unrestricted cash balance at year-end 2024 was $2.1 billion after repaying $500 million of debt in Q4.

Outlook and guidance

• 2025 capital plan set at $7.4–$7.6 billion, front-weighted to the first half, with $4.5 billion sustaining capital.

• Full-year 2025 production expected to average 1,385–1,445 Mboed, with mid-single-digit oil growth.

• OxyChem 2025 pre-tax income guided to $0.9–$1.1 billion.

• STRATOS DAC project on track for mid-2025 commissioning, with full 500 KTPA capacity by mid-2026.

• $1.2 billion in announced divestitures for 2025, with proceeds allocated to debt reduction.