Occidental Petroleum Corp has reported $315 million or $0.31 per diluted share in net income adjusted for extraordinary or nonrecurring items for the fourth quarter.
That beat the Zacks Consensus Estimate – which averages projections by brokerage analysts – of $0.19, as production exceeded the upper end of the company’s guidance.
The Houston, Texas-based oil and gas producer logged a net loss of $68 million, or a net result of -0.07 per diluted share, for Q4.
“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”, Warren Buffett-backed Occidental said in a statement of results.
Early this year Buffett’s holding company Berkshire Hathaway Inc completed the acquisition of OxyChem, Occidental’s chemical business, for $9.7 billion. The sale was part of Occidental’s efforts to keep debt manageable following its acquisition of CrownRock LP, completed 2024 for around $12.4 billion.
Occidental has “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”, the Q4 report stated.
Occidental has increased its quarterly dividend by over eight percent to $0.26 per share. “Quarterly dividend per share has doubled in the last four years”, Occidental said.
In the October-December quarter, production grew sequentially and year-on-year to 1.48 million barrels of oil equivalent per day (boepd). The growth was driven by the Permian basin, which accounted for 818,000 boepd, up from 800,000 boepd in Q3.
The Gulf of America contributed 144,000 boepd, up from 139,000 boepd in Q3. Occidental attributed 284,000 boepd to the Rockies and other United States assets, down from 288,000 boepd in Q3.
Occidental derived 235,000 boepd from outside the U.S. in Q4, down from 238,000 boepd in Q3.
The company’s average realized oil price fell quarter-on-quarter and year-on-year to $59.22 a barrel. Its average realized domestic gas price also dropped quarter-on-quarter and year-on-year to $1.12 per thousand cubic feet.
Net sales totaled $5.11 billion, down from $5.52 billion for Q3 and $5.64 billion for Q4 2024.
Q4 2025 oil and gas pre-tax profit was $655 million, down from $1.3 billion for Q3 2025 and $1.17 billion for Q4 2024. “Excluding items affecting comparability, the [quarter-on-quarter] decline was primarily driven by lower realized commodity prices across all products”, Occidental said.
Midstream and marketing pre-tax income was $204 million, compared to $81 million for Q3 and a pre-tax loss of $123 million for Q4 2024. “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”, Occidental said.
Operating activities generated $2.63 billion in net cash, while free cash flow before working capital was $963 million.
“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”, said president and chief executive Vicki Hollub.
Occidental ended 2025 with $8.83 billion in current assets including $1.97 billion in cash and cash equivalents.
Current liabilities stood at $9.43 billion including $1.77 billion in current maturities from long-term debt.
To contact the author, email jov.onsat@rigzone.com
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