Occidental Petroleum Corporation (OXY.US) turned from a profit to a loss in the fourth quarter, selling off some upstream assets to repay debt of $1.2 billion.

Occidental Petroleum Corporation (OXY.US) announced its fourth-quarter financial results on Tuesday, reporting a loss due to environmental liabilities and a decline in oil prices. The average price of Brent crude oil futures in the fourth quarter fell year-on-year, mainly due to concerns about demand caused by slowing major economies and the double blow of the OPEC+ group delaying planned supply increases and extending deep production cuts until the end of 2026, highlighting weak market demand. For the quarter ending on December 31, the company reported a loss of $297 million, compared to a profit of $1.03 billion in the same period last year. The company stated that the average realized price for crude oil in the fourth quarter was $69.73 per barrel, lower than $78.85 per barrel in the same period last year. Last month, the U.S. shale oil producer had warned that its fourth-quarter crude oil prices were lower. The company also pointed out that increased long-term environmental liabilities due to a recent federal court ruling also had a negative impact on earnings. However, adjusted earnings per share were 80 cents, exceeding analysts' average expectation of 70 cents, thanks to increased production. Globally, daily average production for the quarter increased by 18.6% year-on-year, reaching 1.46 million barrels of oil equivalent. In addition, Occidental Petroleum Corporation reached two deals this quarter, selling some upstream assets to unnamed buyers for a total of $1.2 billion. The assets involved in these transactions include non-operating assets in the Rocky Mountains region and parts of the Permian Basin that are not part of the company's recent development plans, with the deal expected to be completed by the end of this quarter. The company stated that the proceeds from these transactions will be used to repay debt. Occidental Petroleum Corporation also revealed that after completing the $12 billion acquisition of privately held company CrownRock in August last year, it had achieved a $4.5 billion short-term debt repayment goal in the fourth quarter.