Occidental Petroleum (OXY) Q4 2025 earnings summary

Executive summary

• Achieved record annual production of 1.4 million BOE/day in 2025, an 8% increase from 2024, exceeding guidance while spending $300 million less than planned.

• Completed the sale of OxyChem in early 2026, using $5.8 billion of proceeds to reduce principal debt to $15 billion and strengthen the balance sheet.

• Increased quarterly dividend by over 8%, doubling it over four years.

• Achieved strong operational performance with Q4 2025 production of 1,481 Mboed and operating cash flow of $2.6 billion.

• Reported a net loss of $68 million ($0.07 per share) in Q4 2025 due to OxyChem sale charges, with adjusted income of $315 million ($0.31 per share).

Financial highlights

• Generated $4.3 billion in free cash flow before working capital in 2025, despite a 14% drop in oil prices from 2024.

• Cash flow from operations (excluding working capital) reached $2.7 billion in Q4 2025, with net capital expenditures of $1.8 billion.

• Achieved $575 million oil & gas capital and operating cost reduction versus original FY guide, with domestic operating cost per BOE down ~17% since 2023 to $8.35 in FY25.

• Principal debt reduced by over 40% since year-end 2024, with $13.9 billion repaid in 20 months.

• Q4 2025 total revenues were $5.42 billion.

Outlook and guidance

• 2026 capital spending expected at $5.5–$5.9 billion, an ~8% reduction from 2025, with 70% of capital directed to U.S. onshore.

• Production expected to average 1,420–1,480 Mboed in 2026, with 1% growth and Permian guidance of 798–830 Mboed.

• Free cash flow projected to improve by over $1.2 billion in 2026, driven by $500 million in oil and gas savings and $400 million in midstream savings.

• 2026 domestic operating cost guidance: $8.10/boe; transportation cost: $3.30/boe.

• Dividend increased by 8%, with a focus on sustainable and growing returns.