Occidental Petroleum Corp. divested non-core proved and unproved royalty and mineral stakes in the DJ Basin for about $900 million and certain non-core Permian Basin assets for around $400 million in the first quarter (Q1), the hydrocarbons and chemicals producer said in its quarterly report.
To keep debt manageable, Houston, Texas-based Occidental launched a $4.5 billion-$6 billion asset sale program when it announced its merger with CrownRock LP late 2023. Occidental completed its $12.4 billion purchase of CrownRock in Q3 2024.
Occidental said in its annual report for 2024 it had achieved its near-term debt repayment goal of $4.5 billion in Q4 that year. In its latest quarterly statement, for the January-March 2025 period, it said it has made $2.3 billion of debt repayments so far this year.
In its initial announcement of the DJ Basin and Permian divestments to undisclosed buyers on February 18, Occidental said, “The transactions announced today continue to high-grade our portfolio and accelerate the progress toward achieving both our medium-term balance sheet deleveraging target and shareholder return pathway”.
“Occidental will continue to advance deleveraging via free cash flow and divestitures”, it said in that announcement.
At the end of Q1 2025 it owed $1.56 billion in current maturities from long-term debt. Occidental accrued total current liabilities of $9.62 billion.
Meanwhile it had current assets of $9.72 billion including $2.61 billion in cash and cash equivalents.
Occidental logged $860 million in adjusted net profit attributable to shareholders for Q1 2025, up from $792 million for the prior three-month period mainly thanks to higher domestic realized commodity prices. Partially offsetting that was a decrease in sales volumes from 1.46 million barrels of oil equivalent a day (MMboed) to 1.39 MMboed.
Adjusted net income per share was $0.87 diluted, beating the Zacks Consensus Estimate of 73 cents.
Oil and gas pre-tax income was $1.7 billion. Occidental produced 1.39 MMboed, which is at the midpoint of guidance.
Occidental’s chemicals segment contributed a $185 million pre-tax income. “Compared to the fourth quarter of 2024, the decrease in first-quarter OxyChem income was primarily due to lower realized caustic soda and polyvinyl chloride prices along with higher ethylene and natural gas costs”, Occidental said.
Midstream and marketing suffered a $77 million pre-tax loss. “Compared to the fourth quarter of 2024, the increase in first-quarter midstream and marketing results was primarily due to the timing of crude oil sales and higher sulfur prices at Al Hosn”, it said.
Occidental registered $2.15 billion in operating cash flow, which becomes $3 billion before working capital.
It earlier declared a Q1 2025 dividend of $0.24 per share, up from $0.22 for Q4 2024.
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