- Strengthened the balance sheet with the completion of the OxyChem sale on January 2, 2026, reducing debt by $5.8 billion since mid-December 2025 and bringing principal debt to date to $15.0 billion
- Increased quarterly dividend by more than 8% to $0.26 per share, payable April 15, 2026, to stockholders of record as of March 10, 2026; quarterly dividend per share has doubled in the last four years
- Strong operational performance drove operating cash flow of $2.6 billion and operating cash flow before working capital of $2.7 billion
- Capital spending including discontinued operations of $1.8 billion and contributions from noncontrolling interest of $47 million resulted in quarterly free cash flow before working capital of $1.0 billion
- Total company production of 1,481 Mboed exceeded the high end of guidance
- Midstream and marketing pre-tax adjusted income exceeded the high end of guidance
- Worldwide year-end proved reserves of 6 billion BOE with all-in reserves replacement ratio of 98% and organic reserves replacement ratio of 107%
Occidental has announced a net loss attributable to common stockholders of $68 million, or $0.07 per diluted share, and adjusted income attributable to common stockholders of $315 million, or $0.31 per diluted share, for the fourth quarter of 2025. The difference between net loss attributable to common stockholders and adjusted income attributable to common stockholders is mainly comprised of charges and transaction costs related to the sale of OxyChem.
'Our emphasis on operational excellence and cost efficiency drove meaningful production and operating expense outperformance during the fourth quarter,' said President and Chief Executive Officer Vicki Hollub. 'The quality of our assets and the exceptional execution by our teams enabled us to surpass full-year guidance across our oil and gas and midstream businesses. With our enhanced balance sheet following the sale of OxyChem, we remain focused on generating resilient free cash flow and maintaining flexibility in our capital and development programs to support near- and long-term value creation.'
QUARTERLY RESULTS
Oil and Gas
Pre-tax income from oil and gas for the fourth quarter of 2025 totaled $0.7 billion, compared to $1.3 billion for the third quarter of 2025. Excluding items affecting comparability, the decline was primarily driven by lower realized commodity prices across all products. Fourth quarter average WTI and Brent marker prices were $59.14 per barrel and $63.09 per barrel, respectively. Average worldwide realized crude oil prices decreased by 9% from the previous quarter to $59.22 per barrel, while average worldwide realized natural gas liquids prices decreased by 15% to $16.68 per barrel. Average domestic realized gas prices fell by 24% to $1.12 per thousand cubic feet (Mcf).
Total global production for the fourth quarter of 2025 averaged 1,481 thousand barrels of oil equivalent per day (Mboed), surpassing the mid-point of guidance by 21 Mboed, led by contributions from the Permian and Rockies regions. Both Gulf of America and International average daily production met guidance expectations.
Oil and Gas Proved Reserves
As of December 31, 2025, Occidental’s worldwide proved reserves totaled 4.6 billion barrels of oil equivalent (BOE). Proved reserve additions included extensions and discoveries totaling 340 million BOE, mainly in the Permian Basin, and positive revisions associated with infill development projects of 115 million BOE, primarily in the Permian and DJ Basins. The 2025 All-In Reserves Replacement Ratio was 98%, with a three-year average of 154%. The 2025 Organic Reserves Replacement Ratio was 107%, with a three-year average of 116%.
Midstream and Marketing
Midstream and marketing reported pre-tax income of $204 million for the fourth quarter of 2025, compared to pre-tax income of $81 million in the previous quarter. Excluding items affecting comparability, the results exceeded the high end of guidance. Quarter-over-quarter improvements were attributed to higher gas margins from transportation capacity optimization in the Permian, reduced long-haul crude transportation costs, and higher sulfur prices at Al Hosn, partially offset by lower equity method investment income from WES. WES equity method investment income for the fourth quarter was $87 million, which included negative items affecting comparability related to its fourth quarter 2025 acquisition.
Discontinued Operations
Occidental closed the sale of OxyChem on January 2, 2026. As a result, OxyChem’s results of operations and cash flows, along with the related retained liabilities, are reported as discontinued operations in Occidental’s Consolidated Statements of Operations and Cash Flows for all periods presented, with its assets and liabilities reclassified as held for sale in the Consolidated Balance Sheets.
Source: Occidental
