Occidental Petroleum Corporation (OXY)

In its third-quarter earnings considerations, filed in October, Occidental said production was within its guidance range 4. The range includes unplanned Gulf of America downtime in September, caused by a third-party gas pipeline constraint and maintenance 4. The company put Gulf of America net sales volumes for the quarter at 110 thousand barrels of oil equivalent a day 4.

For the second quarter of 2026, net income attributable to common stockholders was $2.8 billion, or $2.75 per diluted share 3. Free cash flow before working capital from continuing operations was $3.0 billion, the highest since the third quarter of 2022 3.

Higher oil prices drove the quarter, with the average worldwide realized crude oil price up 38 percent from the first quarter to $96.78 a barrel 3. The quarterly report says part of that came from risk premiums tied to the conflict involving Iran 2.

Richard Jackson became president and chief executive on 1 June 2026, succeeding Vicki Hollub, who stays on the board 5. Occidental also cut principal debt by $1.9 billion in the quarter, to $11.8 billion, as it works toward a $10.0 billion milestone 3.

Open questions are how fast the Gulf of America volumes return and whether Middle East shipping conditions hold, which the quarterly report calls fragile 24.

Net sales, restated to leave out the chemical business, slipped from $23.2 billion in 2023 to $22.0 billion in 2024 and $21.6 billion in 2025 1. Net income fell from $4.7 billion in 2023 to $3.1 billion in 2024 and $2.4 billion in 2025 1. Lower oil prices explain most of the slide, since the average WTI benchmark fell to $64.81 a barrel in 2025 from $75.72 in 2024 1.

The biggest purchase of the period was CrownRock, which closed in August 2024 1. That is why output rose even as oil prices fell: average daily production climbed 8 percent in 2025, helped by a full year of CrownRock 1.

Oil and gas segment sales were $20.9 billion in 2025, against $21.7 billion in 2024 1. The cost of running wells day to day fell to $8.94 a barrel of oil equivalent in 2025 from $9.75 in 2024 and $10.48 in 2023 1. The company credits efficiencies in the Permian Basin and lower energy costs in Oman 1.

In August 2019 the company issued a warrant to Berkshire Hathaway alongside preferred stock, a financing that still shapes the balance sheet 1. About $8.5 billion face value of that preferred stock remains outstanding, and the company paid $679 million of preferred dividends in 2025 1.

Debt was the other long job, and in 2025 the company used divestiture proceeds and cash to repay about $4.0 billion of debt 1.

The turning point came in October 2025, when Occidental agreed to sell its chemical business, OxyChem, to Berkshire Hathaway for cash 1. The sale closed on 2 January 2026 at an adjusted price of $9.5 billion, with a gain of about $3.1 billion after tax 2. OxyChem had net sales of $4.4 billion in 2025, so the sale left the company more exposed to oil, NGL and gas markets 1.

Proceeds went to debt: in the first half of 2026 the company repaid about $8.6 billion 2. Vicki Hollub led the company as chief executive from April 2016 until her retirement on 1 June 2026 15. She called the years before it a decade-long transformation of the company 5.

The first half of 2026 also carried the sale gain: net income was $6.4 billion for the six months, including $3.1 billion from discontinued operations 2.

Oil and gas

Oil and gas is the core business: it finds, drills and produces crude oil, natural gas liquids and natural gas, mostly in the United States, the Middle East and North Africa 1. Oil and gas segment sales were $20.9 billion in 2025, and year-end proved reserves were 4,603 million barrels of oil equivalent 1.

Global production averaged 1,433 thousand barrels of oil equivalent a day in the second quarter of 2026, above the high end of guidance 3. The company says it competes with public, private and state-owned producers 1.

Permian Basin

The Permian Basin of West Texas and southeast New Mexico is the largest source of output, at 786 thousand barrels of oil equivalent a day in 2025, about 10 percent of the basin's oil 1. The company invested about $3.4 billion there in 2025 1.

Permian Resources drills horizontal wells across 1.5 million net acres 1. Permian EOR, which floods old fields with carbon dioxide to push out more oil, has 1.4 million net acres and 34 active floods 1. The company says this can lift ultimate recovery by 10 percent to 25 percent 1.

Rockies and Gulf of America

In the Rockies and other domestic areas the company produced 284 thousand barrels of oil equivalent a day in 2025 1. The DJ Basin in Colorado draws on about 3,500 gross wells, and permits cover over 90 percent of the 2026 drilling schedule 1.

Offshore, it is the fourth-largest producer in the deep-water Gulf of America, operating 8 floating platforms 1. Production there was 132 thousand barrels of oil equivalent a day in 2025 1.

Middle East and North Africa

In Oman the company operates five blocks, including the Mukhaizna steam-flood field, and its share of production was 72 thousand barrels of oil equivalent a day in 2025 1. A 15-year extension of Block 53 was signed in 2025 1. In Algeria it produced 28 thousand barrels a day from the Berkine Basin 1.

In Qatar it has a 24.5 percent interest in the Dolphin upstream project and the same share of Dolphin's pipeline in the UAE, with a net 40 thousand barrels a day in 2025 1. In the UAE it has a 40 percent interest in the Shah gas field, known as Al Hosn Gas, with ADNOC 1.

Midstream, marketing and low carbon

Midstream and marketing gathers, processes, moves and trades oil, gas and carbon dioxide for the company and others 1. Its sales were $1.3 billion in 2025, with segment results of $252 million 1.

In the second quarter of 2026 the segment reported pre-tax income of $1.3 billion, against a loss of $87 million in the first quarter 3. The company credits higher crude margins from the timing of sales and gas transportation capacity optimization 3.

Oxy Low Carbon Ventures is building STRATOS, its first large-scale direct air capture facility, designed to capture up to 500,000 tons of carbon dioxide a year once complete 1. BlackRock, a joint venture partner, has invested its full commitment of $550 million 2.

People and plants

The company had 10,412 employees in continuing operations at the end of 2025, of whom 6,793 were in North America and 3,441 in the Middle East 1. Richard Jackson, 50, joined in 2003 and was chief operating officer from October 2025 6.

Jack Moore is chairman of the board, and Vicki Hollub remains a director 5. Domestic leasehold and mineral interests cover 8.9 million net acres, about 51 percent leased and 48 percent owned subsurface minerals 1.

Rivals and problems

The filings name no single rival and describe the field as public, private and state-owned producers 1. The IRS disallowed a deduction for Anadarko's Tronox settlement payment, and the matter is pending before the U.S. Tax Court 1.

If the court rules against the company, it may repay an $881 million refund received in 2016, which with other benefits and interest totaled about $2.3 billion at the end of 2025 1. The Tronox payment itself was $5.2 billion 1.

At the end of June 2026 its debt was rated Baa3 by Moody's, BBB by Fitch and BB+ by S&P 2. The company also kept legacy chemical-era environmental and tort liabilities and guaranteed its subsidiaries' indemnities to Berkshire Hathaway 1.

The umbrella, in words

Oxy Low Carbon Ventures is the low-carbon arm, and the 1PointFive subsidiaries carry the carbon-removal projects, including the STRATOS entities 17. The sold chemical business, OxyChem, no longer belongs to the group 2.

Exhibit 21 lists subsidiaries more than 50 percent owned or controlled as of 31 December 2025, among them many Anadarko entities in Delaware and the Cayman Islands 7. No list of brands beyond Oxy is given in the annual report 1.

Occidental has an equity method investment in Western Midstream Partners (WES), whose gathering systems, plants and pipelines serve the company and others 1. WES contributed $149 million of equity income in the second quarter of 2026 3.

It also has an equity investment in the Dolphin Energy pipeline linking Qatar, the UAE and Oman, with a capacity of 3.2 billion cubic feet a day 1. Berkshire Hathaway, a related party, holds a warrant that would issue 83.9 million common shares if exercised in full 1.

The board raised the quarterly dividend by 8 percent to $0.28 a share in August 2026 2. The company lists a sustainable and growing dividend among its priorities, with safe operations, a strong balance sheet and steady base production 2.

In its annual report the company said excess cash flow and sale proceeds would go to debt until principal debt is about $14.3 billion, after which cash goes to opportunistic repurchases or more debt reduction 1. By mid-2026 debt stood at $11.8 billion, and the company pointed to a $10.0 billion milestone 3.

Richard Jackson said the company expects to generate significant free cash flow growth by 2030 3. The company also had $1.2 billion left on a $3.0 billion repurchase authorization at the end of 2025 1.

STRATOS is expected to begin operations in 2026, with up to 250,000 tons a year from its first two trains and the remaining 250,000 tons on completion of trains 3 and 4 1.

In the Gulf of America the first water injection at Marlin was planned for summer 2026 and at Horn Mountain for 2027 1. Colorado permits already cover over 45 percent of the 2027 drilling schedule 1.

Oman contracts expire in stages: Block 62 in 2028, Block 9 in 2030 and Block 53 in 2050 1. Block 53 carries the extension signed in 2025 1.

The company set goals of net zero emissions from its operations before 2040, with an ambition of before 2035, and from its total carbon inventory with an ambition of before 2050 1.

The Tax Court matter over the Tronox deduction was still pending when the annual report was filed 1.

The company has five carbon sequestration hubs under development over 310,000 acres in Texas and Louisiana 1.

In its third-quarter note the company said the remaining affected Gulf of America production is expected to return as the pipeline constraint is resolved 4.