Occidental Petroleum Corp. reported fourth‑quarter 2025 results that included an adjusted earnings per share of $0.31, a 72% beat over the consensus estimate of $0.18. Revenue, however, fell short of expectations, coming in at $5.42 billion versus an estimate of $5.88 billion. Production reached 1.481 million barrels of oil equivalent per day, exceeding the high end of the company’s guidance and reflecting continued efficiency gains in its Permian operations.
The earnings beat was driven by disciplined cost management and operational efficiency. Lower operating expenses and a favorable mix shift toward higher‑margin segments helped offset the impact of lower realized oil and gas prices, which contributed to the revenue miss. In the upstream Oil & Gas segment, pre‑tax income dropped from $1.3 billion in Q3 to $0.7 billion in Q4, largely due to the decline in commodity prices. Conversely, the Midstream & Marketing segment saw pre‑tax income rise from $81 million to $204 million, supported by higher gas margins and reduced costs.
The company’s balance sheet was strengthened by the completion of the OxyChem sale to Berkshire Hathaway on January 2, 2026. The transaction removed $5.8 billion of debt, bringing principal debt down to $15 billion and freeing capital for dividends and future investment. As a result, Occidental increased its quarterly dividend by 8% to $0.26 per share.
Management guided for a lower 2026 capital‑expenditure outlook of $5.7 billion, signaling confidence in cash‑flow generation amid a softer commodity market. The company emphasized continued operational excellence and cost discipline as key drivers of its performance and future outlook.
Investors reacted positively to the results, citing the EPS beat, the significant debt reduction, the dividend increase, and the lower capital‑expenditure guidance as evidence of strong execution and a resilient balance sheet.
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