Occidental Petroleum Reports Strong Q4 Earnings Boosting Stock by 9.38%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Should l Buy OXY?
Source: Fool
- Financial Flexibility Enhanced: Occidental completed the sale of its chemical business, OxyChem, on January 2, allowing it to pay down $5.8 billion in debt, significantly improving its financial position and enhancing future investment and dividend flexibility.
- Increased Shareholder Returns: The company raised its quarterly dividend by 8% to $0.26 per share, payable on April 15 to shareholders of record as of March 10, demonstrating its commitment to shareholder returns and improved financial health.
- Strong Cash Flow Generation: Despite declines in crude oil and natural gas prices, Occidental achieved an average production of 1.481 million barrels of oil equivalent per day in Q4, with operating and free cash flows of $2.6 billion and $1 billion, respectively, indicating success in operational efficiency and cost control.
- Operational Excellence Performance: CEO Vicki Hollub noted that the company's emphasis on operational excellence and cost efficiency drove meaningful outperformance in production and operating expenses during Q4, further solidifying its competitive position in the energy market.
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Analyst Views on OXY
Wall Street analysts forecast OXY stock price to rise
16 Analyst Rating
4 Buy
9 Hold
3 Sell
Hold
Current: 47.110
Low
38.00
Averages
47.27
High
64.00
Current: 47.110
Low
38.00
Averages
47.27
High
64.00
About OXY
Occidental Petroleum Corporation is an international energy company with assets primarily in the United States, the Middle East and North Africa. The Company is an oil and gas producer in the United States, including a producer in the Permian and DJ basins, and the offshore Gulf of Mexico. It operates through three segments: oil and gas, chemical and midstream and marketing. The oil and gas segment explores for, develops, and produces oil (which includes condensate), natural gas liquids (NGL) and natural gas. The chemical segment primarily manufactures and markets basic chemicals and vinyls. The midstream and marketing segment purchases, markets, gathers, processes, transports, and stores oil (which includes condensate), NGL, natural gas, carbon dioxide (CO2) and power. The midstream and marketing segment provides flow assurance and maximizes the value of its oil and gas. It also optimizes its transportation and storage capacity and invests in entities that conduct similar activities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Occidental Petroleum Q4 2025 Earnings Call Highlights
- Record Performance: Occidental Petroleum achieved a new production record of 1.4 million barrels of oil equivalent per day in 2025, exceeding guidance while reducing capital expenditures by $300 million and operating expenses by $275 million, demonstrating exceptional cost control and resource allocation capabilities.
- Financial Strength: Despite a 14% decline in oil prices, the company generated approximately $1 billion in free cash flow and reduced principal debt to $15 billion, with plans for a $700 million tender offer to further lower it to $14.3 billion, enhancing financial flexibility.
- Strategic Transformation: Management emphasized a shift away from transformative acquisitions towards execution and efficiency improvements, achieving around $2 billion in annual cost savings since 2023, ensuring sustained production growth and shareholder returns.
- Future Outlook: Capital spending is projected to decrease to $5.5 billion to $5.9 billion in 2026, with a production target of approximately 1.45 million barrels of oil equivalent per day, as management commits to maintaining cost discipline and flexible capital allocation to navigate uncertain market conditions.
See More
OCCIDENTAL PETROLEUM STOCK RISES 9.7% FOLLOWING BETTER-THAN-EXPECTED Q4 PROFITS
- Stock Performance: Occidental Petroleum shares increased by 9.7% following the announcement of their fourth-quarter profits.
- Profit Surpassing Estimates: The company's profits for the quarter exceeded analysts' expectations, contributing to the rise in stock value.
See More
Occidental Petroleum Reports Strong Q4 Earnings Boosting Stock by 9.38%
- Financial Flexibility Enhanced: Occidental completed the sale of its chemical business, OxyChem, on January 2, allowing it to pay down $5.8 billion in debt, significantly improving its financial position and enhancing future investment and dividend flexibility.
- Increased Shareholder Returns: The company raised its quarterly dividend by 8% to $0.26 per share, payable on April 15 to shareholders of record as of March 10, demonstrating its commitment to shareholder returns and improved financial health.
- Strong Cash Flow Generation: Despite declines in crude oil and natural gas prices, Occidental achieved an average production of 1.481 million barrels of oil equivalent per day in Q4, with operating and free cash flows of $2.6 billion and $1 billion, respectively, indicating success in operational efficiency and cost control.
- Operational Excellence Performance: CEO Vicki Hollub noted that the company's emphasis on operational excellence and cost efficiency drove meaningful outperformance in production and operating expenses during Q4, further solidifying its competitive position in the energy market.
See More
US Stocks Close Lower Amid AI Outlook Concerns
- Market Weakness: The S&P 500 index fell by 0.28%, the Dow Jones Industrial Average decreased by 0.54%, and the Nasdaq 100 index dropped by 0.41%, indicating market concerns over the outlook for artificial intelligence, particularly affecting chipmakers and AI infrastructure stocks.
- Mixed Economic Data: Initial jobless claims in the US fell to 206,000, a 5-week low, indicating a strong labor market; however, the December trade deficit widened to $70.3 billion, exceeding expectations, reflecting uncertainties in economic recovery.
- Shifts in Fed Policy Expectations: Hawkish comments from Fed officials suggest a potential need for interest rate hikes to combat persistent inflation, leading to a more hawkish outlook for future rate paths, which further dampens market sentiment.
- Earnings Season Nearing Conclusion: With over three-quarters of S&P 500 companies reporting, 74% exceeded expectations, and Q4 earnings are projected to grow by 8.4%, demonstrating corporate resilience, yet the market remains cautious about future growth prospects.
See More
Asia-Pacific Markets Set to Open Lower Amid Rising Oil Prices
- Market Opening Expectations: Asia-Pacific markets are set to open lower on Friday, following declines in all three major U.S. indexes due to pressure from private credit stocks and rising Iran-U.S. tensions, indicating market sensitivity to geopolitical risks.
- Oil Price Reaction: Oil prices surged in response to President Trump's statement about deciding on military action against Iran within the next 10 days, with WTI crude rising by $1.24, or 1.9%, to close at $66.43 per barrel, reflecting market concerns over potential conflict.
- Japan Inflation Data: Japan's headline inflation for January dipped below the Bank of Japan's 2% target for the first time in 45 months, indicating signs of economic slowdown that could influence future monetary policy decisions.
- China Central Bank Decision: The People's Bank of China is set to announce its loan prime rate (LPR) decision today, with the current one-year and five-year LPRs at 3% and 3.5% respectively, and the market will closely watch this decision's potential impact on the economy.
See More
US Stock Market Under Pressure Amid AI Outlook Concerns
- Market Weakness: The S&P 500 index fell by 0.26%, the Dow Jones Industrial Average by 0.28%, and the Nasdaq 100 by 0.34%, reflecting market concerns over the outlook for artificial intelligence, particularly with poor performances from chipmakers and AI infrastructure stocks.
- Mixed Economic Data: Initial jobless claims in the US fell by 23,000 to 206,000, marking a 5-week low and indicating a strong labor market; however, the December trade deficit widened to $70.3 billion, exceeding expectations and suggesting challenges in economic recovery.
- Earnings Season Nearing End: Over 75% of S&P 500 companies have reported earnings, with 75% exceeding expectations, and Q4 earnings growth is projected at 8.4%, marking the tenth consecutive quarter of year-over-year growth, demonstrating resilience in corporate earnings.
- Geopolitical Risks Intensify: WTI crude oil prices rose over 2% to a three-week high due to military buildup in the Middle East, potentially increasing inflationary pressures, which could affect market sentiment and investor confidence.
See More
Occidental Petroleum Q4 2025 Earnings Call Highlights
- Record Performance: Occidental Petroleum achieved a new production record of 1.4 million barrels of oil equivalent per day in 2025, exceeding guidance while reducing capital expenditures by $300 million and operating expenses by $275 million, demonstrating exceptional cost control and resource allocation capabilities.
- Financial Strength: Despite a 14% decline in oil prices, the company generated approximately $1 billion in free cash flow and reduced principal debt to $15 billion, with plans for a $700 million tender offer to further lower it to $14.3 billion, enhancing financial flexibility.
- Strategic Transformation: Management emphasized a shift away from transformative acquisitions towards execution and efficiency improvements, achieving around $2 billion in annual cost savings since 2023, ensuring sustained production growth and shareholder returns.
- Future Outlook: Capital spending is projected to decrease to $5.5 billion to $5.9 billion in 2026, with a production target of approximately 1.45 million barrels of oil equivalent per day, as management commits to maintaining cost discipline and flexible capital allocation to navigate uncertain market conditions.
See More
OCCIDENTAL PETROLEUM STOCK RISES 9.7% FOLLOWING BETTER-THAN-EXPECTED Q4 PROFITS
- Stock Performance: Occidental Petroleum shares increased by 9.7% following the announcement of their fourth-quarter profits.
- Profit Surpassing Estimates: The company's profits for the quarter exceeded analysts' expectations, contributing to the rise in stock value.
See More
Occidental Petroleum Reports Strong Q4 Earnings Boosting Stock by 9.38%
- Financial Flexibility Enhanced: Occidental completed the sale of its chemical business, OxyChem, on January 2, allowing it to pay down $5.8 billion in debt, significantly improving its financial position and enhancing future investment and dividend flexibility.
- Increased Shareholder Returns: The company raised its quarterly dividend by 8% to $0.26 per share, payable on April 15 to shareholders of record as of March 10, demonstrating its commitment to shareholder returns and improved financial health.
- Strong Cash Flow Generation: Despite declines in crude oil and natural gas prices, Occidental achieved an average production of 1.481 million barrels of oil equivalent per day in Q4, with operating and free cash flows of $2.6 billion and $1 billion, respectively, indicating success in operational efficiency and cost control.
- Operational Excellence Performance: CEO Vicki Hollub noted that the company's emphasis on operational excellence and cost efficiency drove meaningful outperformance in production and operating expenses during Q4, further solidifying its competitive position in the energy market.
See More
US Stocks Close Lower Amid AI Outlook Concerns
- Market Weakness: The S&P 500 index fell by 0.28%, the Dow Jones Industrial Average decreased by 0.54%, and the Nasdaq 100 index dropped by 0.41%, indicating market concerns over the outlook for artificial intelligence, particularly affecting chipmakers and AI infrastructure stocks.
- Mixed Economic Data: Initial jobless claims in the US fell to 206,000, a 5-week low, indicating a strong labor market; however, the December trade deficit widened to $70.3 billion, exceeding expectations, reflecting uncertainties in economic recovery.
- Shifts in Fed Policy Expectations: Hawkish comments from Fed officials suggest a potential need for interest rate hikes to combat persistent inflation, leading to a more hawkish outlook for future rate paths, which further dampens market sentiment.
- Earnings Season Nearing Conclusion: With over three-quarters of S&P 500 companies reporting, 74% exceeded expectations, and Q4 earnings are projected to grow by 8.4%, demonstrating corporate resilience, yet the market remains cautious about future growth prospects.
See More
Asia-Pacific Markets Set to Open Lower Amid Rising Oil Prices
- Market Opening Expectations: Asia-Pacific markets are set to open lower on Friday, following declines in all three major U.S. indexes due to pressure from private credit stocks and rising Iran-U.S. tensions, indicating market sensitivity to geopolitical risks.
- Oil Price Reaction: Oil prices surged in response to President Trump's statement about deciding on military action against Iran within the next 10 days, with WTI crude rising by $1.24, or 1.9%, to close at $66.43 per barrel, reflecting market concerns over potential conflict.
- Japan Inflation Data: Japan's headline inflation for January dipped below the Bank of Japan's 2% target for the first time in 45 months, indicating signs of economic slowdown that could influence future monetary policy decisions.
- China Central Bank Decision: The People's Bank of China is set to announce its loan prime rate (LPR) decision today, with the current one-year and five-year LPRs at 3% and 3.5% respectively, and the market will closely watch this decision's potential impact on the economy.
See More
US Stock Market Under Pressure Amid AI Outlook Concerns
- Market Weakness: The S&P 500 index fell by 0.26%, the Dow Jones Industrial Average by 0.28%, and the Nasdaq 100 by 0.34%, reflecting market concerns over the outlook for artificial intelligence, particularly with poor performances from chipmakers and AI infrastructure stocks.
- Mixed Economic Data: Initial jobless claims in the US fell by 23,000 to 206,000, marking a 5-week low and indicating a strong labor market; however, the December trade deficit widened to $70.3 billion, exceeding expectations and suggesting challenges in economic recovery.
- Earnings Season Nearing End: Over 75% of S&P 500 companies have reported earnings, with 75% exceeding expectations, and Q4 earnings growth is projected at 8.4%, marking the tenth consecutive quarter of year-over-year growth, demonstrating resilience in corporate earnings.
- Geopolitical Risks Intensify: WTI crude oil prices rose over 2% to a three-week high due to military buildup in the Middle East, potentially increasing inflationary pressures, which could affect market sentiment and investor confidence.
See More
