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Wednesday, February 18, 2026 4:15 PM ET

Occidental Announces 4th Quarter 2025 Results

  • 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
  • Increased quarterly dividend by more than 8% to $0.26 per share, payable April 15, 2026, to stockholders of record as of March 10, 2026; quarterly dividend per share has doubled in the last four years
  • Strong operational performance drove operating cash flow of $2.6 billion and operating cash flow before working capital of $2.7 billion
  • Capital spending including discontinued operations of $1.8 billion and contributions from noncontrolling interest of $47 million resulted in quarterly free cash flow before working capital of $1.0 billion
  • Total company production of 1,481 Mboed exceeded the high end of guidance
  • Midstream and marketing pre-tax adjusted income exceeded the high end of guidance
  • Worldwide year-end proved reserves of 6 billion BOE with all-in reserves replacement ratio of 98% and organic reserves replacement ratio of 107%

HOUSTON — February 18, 2026 — Occidental (NYSE: OXY) today announced a net loss attributable to common stockholders of $68 million, or $0.07 per diluted share, and adjusted income attributable to common stockholders of $315 million, or $0.31 per diluted share, for the fourth quarter of 2025. 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.

“Our emphasis on operational excellence and cost efficiency drove meaningful production and operating expense outperformance during the fourth quarter,” said President and Chief Executive Officer Vicki Hollub. “The quality of our assets and the exceptional execution by our teams enabled us to surpass full‑year guidance across our oil and gas and midstream businesses. 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.”

QUARTERLY RESULTS

Oil and Gas

Pre-tax income from oil and gas for the fourth quarter of 2025 totaled $0.7 billion, compared to $1.3 billion for the third quarter of 2025. Excluding items affecting comparability, the decline was primarily driven by lower realized commodity prices across all products. Fourth quarter average WTI and Brent marker prices were $59.14 per barrel and $63.09 per barrel, respectively. Average worldwide realized crude oil prices decreased by 9% from the previous quarter to $59.22 per barrel, while average worldwide realized natural gas liquids prices decreased by 15% to $16.68 per barrel. Average domestic realized gas prices fell by 24% to $1.12 per thousand cubic feet (Mcf).

Total global production for the fourth quarter of 2025 averaged 1,481 thousand barrels of oil equivalent per day (Mboed), surpassing the mid-point of guidance by 21 Mboed, led by contributions from the Permian and Rockies regions. Both Gulf of America and International average daily production met guidance expectations.

Oil and Gas Proved Reserves

As of December 31, 2025, Occidental’s worldwide proved reserves totaled 4.6 billion barrels of oil equivalent (BOE). Proved reserve additions included extensions and discoveries totaling 340 million BOE, mainly in the Permian Basin, and positive revisions associated with infill development projects of 115 million BOE, primarily in the Permian and DJ Basins. The 2025 All-In Reserves Replacement Ratio was 98%, with a three-year average of 154%. The 2025 Organic Reserves Replacement Ratio was 107%, with a three-year average of 116%.

Midstream and Marketing

Midstream and marketing reported pre-tax income of $204 million for the fourth quarter of 2025, compared to pre-tax income of $81 million in the previous quarter. Excluding items affecting comparability, the results exceeded the high end of guidance. 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. WES equity method investment income for the fourth quarter was $87 million, which included negative items affecting comparability related to its fourth quarter 2025 acquisition.

Discontinued Operations

Occidental closed the sale of OxyChem on January 2, 2026. As a result, OxyChem’s results of operations and cash flows, along with the related retained liabilities, are reported as discontinued operations in Occidental’s Consolidated Statements of Operations and Cash Flows for all periods presented, with its assets and liabilities reclassified as held for sale in the Consolidated Balance Sheets.

Supplemental Non-GAAP Measures

This press release refers to adjusted income (loss), operating cash flow before working capital, capital expenditures, net of noncontrolling interest, free cash flow before working capital and adjusted selling, general and administrative (SG&A), other operating and non-operating expenses, which are supplemental measures not calculated in accordance with generally accepted accounting principles in the United States (GAAP). These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as an alternative to the comparable GAAP financial measures. Definitions of adjusted income (loss) and a reconciliation to net income (loss), along with operating cash flow before working capital, capital expenditures, net of noncontrolling interest, free cash flow before working capital and adjusted SG&A, other operating and non-operating expenses and a reconciliation to the comparable GAAP financial measures, are included in the financial schedules of this press release. Occidental’s definition of adjusted income (loss), operating cash flow before working capital, capital expenditures, net of noncontrolling interest, free cash flow before working capital and adjusted SG&A, other operating and non-operating expenses may differ from similarly titled measures provided by other companies in our industry and as a result may not be comparable.

This press release also refers to F&D Costs and reserves replacement ratio, which are non-GAAP measures that Occidental believes are widely used in our industry, as well as by analysts and investors, to measure and evaluate the cost of replacing annual production and adding proved reserves. Occidental’s definitions of these non-GAAP measures may differ from similarly titled measures provided by other companies and as a result may not be comparable. All-In F&D Costs is calculated by dividing total costs incurred for the year as defined by GAAP by the sum of proved reserves revisions, improved recovery, extensions and discoveries and purchases of minerals in place for the year. Organic F&D Costs excludes from All-In F&D Costs both the property acquisition costs and purchases of minerals in place, and Program Additions F&D Costs further excludes price and other revisions that are not infills. All-In Reserves Replacement Ratio is calculated by dividing the sum of proved reserves revisions, improved recovery, extensions and discoveries and purchases and sales of minerals in place for the year by current year production. Organic Reserves Replacement Ratio excludes from All-In Reserves Replacement purchases and sales of minerals in place for the year. Program Additions Reserves Replacement Ratio further excludes price and other revisions that are not infills.

About Occidental

Occidental is an international energy company that produces, markets and transports oil and natural gas to maximize value and provide resources fundamental to life. The company leverages its global leadership in carbon management to advance lower-carbon technologies and products. Headquartered in Houston, Occidental primarily operates in the United States, the Middle East and North Africa. To learn more, visit oxy.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements about Occidental’s expectations, beliefs, plans or forecasts. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including, but not limited to: any projections of earnings, revenue or other financial items or future financial position or sources of financing; any statements of the plans, strategies and objectives of management for future operations or business strategy; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing. Words such as “estimate,” “project,” “predict,” “will,” “would,” “should,” “could,” “may,” “might,” “anticipate,” “plan,” “intend,” “believe,” “expect,” “aim,” “goal,” “target,” “objective,” “commit,” “advance,” “guidance,” “focus,” “likely” or similar expressions that convey the prospective nature of events or outcomes are generally indicative of forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release unless an earlier date is specified. Unless legally required, Occidental does not undertake any obligation to update, modify or withdraw any forward-looking statement as a result of new information, future events or otherwise.

Forward-looking statements involve estimates, expectations, projections, goals, forecasts, assumptions, risks and uncertainties. Actual outcomes or results may differ from anticipated results, sometimes materially. Factors that could cause results to differ from those projected or assumed in any forward-looking statement include, but are not limited to: general economic conditions, including slowdowns and recessions, domestically or internationally; Occidental’s indebtedness and other payment obligations, including the need to generate sufficient cash flows to fund operations; Occidental’s ability to successfully monetize select assets and repay or refinance debt and the impact of changes in Occidental’s credit ratings or future increases in interest rates; assumptions about energy markets; global and local commodity and commodity-futures pricing fluctuations and volatility; supply and demand considerations for, and the prices of, Occidental’s products and services; actions by the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC oil producing countries; results from operations and competitive conditions; future impairments of Occidental’s proved and unproved oil and gas properties or equity investments, or write-downs of productive assets, causing charges to earnings; unexpected changes in costs; government actions (including the effects of announced or future tariff increases and other geopolitical, trade, tariff, fiscal and regulatory uncertainties), war (including the Russia-Ukraine war and conflicts in the Middle East) and political conditions and events (such as in Latin America); inflation, its impact on markets and economic activity and related monetary policy actions by governments in response to inflation; availability of capital resources, levels of capital expenditures and contractual obligations; the regulatory approval environment, including Occidental’s ability to timely obtain or maintain permits or other government approvals, including those necessary for drilling and/or development projects; Occidental’s ability to successfully complete, or any material delay of, field developments, expansion projects, capital expenditures, efficiency projects, acquisitions or divestitures; risks associated with acquisitions, mergers and joint ventures, such as difficulties integrating businesses, uncertainty associated with financial projections or projected synergies, restructuring, increased costs and adverse tax consequences; uncertainties and liabilities associated with acquired and divested properties and businesses, including retained liabilities and indemnification obligations associated with the chemical business; uncertainties about the estimated quantities of oil, NGL and natural gas reserves; lower-than-expected production from development projects or acquisitions; Occidental’s ability to realize the anticipated benefits from prior or future streamlining actions to reduce fixed costs, simplify or improve processes and improve Occidental’s competitiveness; exploration, drilling and other operational risks; disruptions to, capacity constraints in, or other limitations on the pipeline systems that deliver Occidental’s oil and natural gas and other processing and transportation considerations; volatility in the securities, capital or credit markets, including capital market disruptions and instability of financial institutions; health, safety and environmental (HSE) risks, costs and liability under existing or future federal, regional, state, provincial, tribal, local and international HSE laws, regulations and litigation (including related to climate change or remedial actions or assessments); legislative or regulatory changes, including changes relating to hydraulic fracturing or other oil and natural gas operations, retroactive royalty or production tax regimes, and deep-water and onshore drilling and permitting regulations; Occidental’s ability to recognize intended benefits from its business strategies and initiatives, such as the sale of OxyChem, Occidental’s low-carbon ventures businesses and announced greenhouse gas emissions reduction targets or net-zero goals; changes in government grant or loan programs; potential liability resulting from pending or future litigation, government investigations and other proceedings; disruption or interruption of production or facility damage due to accidents, chemical releases, labor unrest, weather, power outages, natural disasters, cyber-attacks, terrorist acts or insurgent activity; the scope and duration of global or regional health pandemics or epidemics and actions taken by government authorities and other third parties in connection therewith; the creditworthiness and performance of Occidental’s counterparties, including financial institutions, operating partners and other parties; failure of risk management; Occidental’s ability to retain and hire key personnel; supply, transportation and labor constraints; reorganization or restructuring of Occidental’s operations; changes in state, federal or international tax rates, deductions, incentives or credits; and actions by third parties that are beyond Occidental’s control.

Additional information concerning these and other factors that may cause Occidental’s results of operations and financial position to differ from expectations can be found in Occidental’s other filings with the U.S. Securities and Exchange Commission, including Occidental’s Annual Report on Form 10-K for the year ended December 31, 2025, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

View the news release and financial schedules here.