Upstream production increase to resist price drops, strong growth in midstream. Occidental Petroleum Corporation (OXY.US) reported Q4 earnings exceeding expectations.

Occidental Petroleum Corporation (OXY.US) announced on Wednesday that its fourth-quarter profits exceeded Wall Street expectations, with strong performance in its chemical business helping to offset the impact of lower oil prices. According to data compiled by LSEG, for the three months ending December 31, Occidental Petroleum Corporation reported adjusted earnings per share of $0.31, higher than the expected $0.18. Revenue decreased by 5.2% year-on-year to $5.42 billion. The fourth-quarter performance was affected by the decline in commodity prices. For the fourth quarter of 2025, the pre-tax revenue from the oil and gas business totaled $700 million, compared to $1.3 billion for the third quarter of 2025. Occidental Petroleum Corporation's fourth-quarter oil price dropped from $69.73 per barrel in the same period last year to $59.22 per barrel, but daily production slightly increased to 1.48 million barrels of oil equivalent, exceeding guidance. Concerns about oversupply in the oil market intensified during the fourth quarter, putting pressure on global oil prices, which dropped by over 9% on average. Natural gas prices fell by 15% to $16.68 per barrel, while domestic natural gas prices in the US dropped by 24% to $1.12 per thousand cubic feet. In the midstream business segment, the company reported pre-tax profits of $204 million, compared to $810 million in the previous quarter and a loss of $123 million in the same period last year. Business growth was driven by increased natural gas profit margins from optimization in the Permian Basin, reduced long-haul crude transportation costs, and higher sulfur prices at the Al Hosn field, a joint venture with the Abu Dhabi National Oil Company (ADNOC). Occidental Petroleum Corporation expects capital expenditures in 2026 to be between $5.5 billion and $5.9 billion, with average production expected to range from 1.42 million barrels of oil equivalent per day to 1.48 million barrels of oil equivalent per day. First-quarter production is expected to range from 1.38 million barrels of oil equivalent per day to 1.42 million barrels of oil equivalent per day. The company also announced that since mid-December last year, with the completion of the OxyChem sale transaction on January 2, it has reduced its debt by $5.8 billion, bringing the total debt principal down to $15 billion. The company stated its goal of maintaining the debt principal at around $14.3 billion in 2026. After acquiring Anadarko Petroleum for $55 billion in 2019 and CrownRock for $12 billion last year, Occidental Petroleum Corporation has accumulated significant debt. As of December 31, the Houston-based company's long-term debt was $20.63 billion. Furthermore, the quarterly dividend increased by over 8% to $0.26 per share, payable to shareholders registered on March 10, 2026, on April 15, 2026; the quarterly dividend per share has doubled over the past four years.