(WO) – Occidental Petroleum reported fourth-quarter 2025 production that exceeded guidance and continued balance sheet improvement following the sale of its OxyChem business, the company announced Tuesday.
Vicki Hollub, CEO of Occidental
Total company production averaged 1.48 MMboed during the quarter, surpassing the high end of guidance, with strong contributions from the Permian basin and Rockies. U.S. Gulf and international production met expectations.
Occidental generated operating cash flow of $2.6 billion and operating cash flow before working capital of $2.7 billion in the fourth quarter. Capital spending totaled $1.8 billion, resulting in quarterly free cash flow before working capital of approximately $1.0 billion.
Occidental closed the sale of OxyChem on Jan. 2, 2026, and said the transaction strengthened its balance sheet, reducing debt by $5.8 billion since mid-December and bringing total principal debt to approximately $15.0 billion. The company also increased its quarterly dividend by more than 8% to $0.26 per share.
Pre-tax income from the oil and gas segment totaled $0.7 billion in the fourth quarter, compared with $1.3 billion in the third quarter, reflecting lower realized commodity prices. Average realized crude prices declined 9% from the previous quarter, while domestic realized natural gas prices fell 24%.
As of Dec. 31, 2025, Occidental reported worldwide proved reserves of 4.6 billion boe. Reserve additions were driven largely by extensions and discoveries in the Permian basin, along with positive revisions from infill development projects. The company posted an all-in reserves replacement ratio of 98% for 2025 and an organic reserves replacement ratio of 107%.
Occidental said its improved balance sheet and operational performance position the company to maintain disciplined capital spending and focus on generating resilient free cash flow across its core upstream and midstream operations.
