Financial Data and Key Metrics Changes - The company generated an adjusted profit of $0.87 per diluted share and a reported profit of $0.77 per diluted share in Q1 2025, with a significant difference attributed to the mark-to-market impact of derivatives [20][21] - Operating cash flow before working capital reached $3 billion, while free cash flow before working capital was approximately $1.2 billion [5][20] - The company exited Q1 2025 with $2.6 billion of unrestricted cash [20] Business Line Data and Key Metrics Changes - The oil and gas business produced over 1,390,000 BOE per day, aligning with production guidance [5][6] - Domestic oil and gas operating costs were reported at $9.5 per BOE, significantly below initial expectations [6] - OxyChem delivered $215 million on an adjusted basis, overcoming operational challenges [11] Market Data and Key Metrics Changes - The company expects total production to grow from Q1 to the second half of the year, driven by activities in the Middle East and Gulf of America [9][22] - The midstream and marketing business outperformed expectations, benefiting from strong gas marketing optimization [12] Company Strategy and Development Direction - The company is focused on debt reduction, having retired $2.3 billion in debt year-to-date, with a total of $6.8 billion repaid over the past ten months [15][26] - The company is negotiating to extend the Block 53 contract in Oman by 15 years, which could unlock over 800 million gross barrels of additional resources [10][62] - The company aims to maintain operational efficiency and flexibility in response to market volatility, with a focus on preserving value through disciplined capital allocation [19][30] Management's Comments on Operating Environment and Future Outlook - Management highlighted uncertainty around demand, policy, and supply as headwinds for the sector, leading to increased commodity price volatility [15][16] - The company is prepared to scale back activity if commodity prices weaken significantly, emphasizing the importance of maintaining operational efficiencies [17][19] - Management expressed confidence in the company's ability to deliver consistent results and drive long-term shareholder returns despite market challenges [29][30] Other Important Information - The company has made significant advancements in carbon management, including a 25-year carbon offtake agreement for a low carbon ammonia facility [13] - The company expects to see benefits from revised crude transportation contracts, delivering a pretax cash flow uplift of approximately $200 million in 2025 [28] Q&A Session All Questions and Answers Question: CapEx and OpEx reductions for this year - Management discussed a mix of efficiency gains and timeline adjustments, emphasizing that the decisions made will not sacrifice production in the outer years [34][36][97] Question: Free cash flow and capital breakdown - Management provided details on the expected cash flow inflection, highlighting contributions from reduced capital spending and increased operating cash flow [40][44] Question: Thoughts on divestitures - Management indicated that divestiture decisions will be value-based, with options available for both short and long cycle assets [51][60] Question: Opportunities in Oman - Management expressed excitement about the potential in Block 53 and the North Oman discovery, anticipating cash flow improvements [61][66] Question: Low Carbon Ventures business - Management highlighted the strong voluntary compliance market for carbon reduction credits and the importance of partnerships in the low carbon space [74][78] Question: U.S. oil supply outlook - Management noted that U.S. shale basins are plateauing or declining, with the Permian potentially plateauing sooner than expected due to reduced activity levels [81][90]

Financial Data and Key Metrics Changes - In Q1 2025, the company generated an adjusted profit of $0.87 per diluted share and a reported profit of $0.77 per diluted share, with a significant difference attributed to the mark-to-market impact of derivatives [20] - The company generated approximately $1,200,000,000 of free cash flow before working capital and exited the quarter with $2,600,000,000 of unrestricted cash [20] - Year-to-date, the company has retired $2,300,000,000 in debt, contributing to a reduction in annual interest expense by $370,000,000 [14][25] Business Line Data and Key Metrics Changes - The oil and gas business produced just over 1,390,000 BOE per day, meeting production guidance [4] - OxyChem delivered $215,000,000 on an adjusted basis, overcoming operational challenges related to winter weather [10] - The midstream and marketing business significantly outperformed expectations, driven by strong gas marketing optimization [11] Market Data and Key Metrics Changes - The company expects total company production to modestly increase in Q2 2025, driven by various activities including Permian activity levels and the return of Gulf of America production [21] - The company revised its full-year operating cost guidance from $9 to $8.65 per BOE, reflecting a commitment to operational efficiency [23] Company Strategy and Development Direction - The company is focused on strengthening its balance sheet, increasing returns to shareholders, and contributing to U.S. energy leadership through disciplined capital allocation and operational excellence [29] - The company is in advanced negotiations to extend the Block 53 contract in Oman by fifteen years, which is expected to unlock significant additional resources [7][9] - The company is committed to debt reduction and has made significant progress, with all 2025 maturities retired [14][26] Management's Comments on Operating Environment and Future Outlook - Management highlighted uncertainty around demand, policy, and supply as headwinds for the sector, leading to increased commodity price volatility [14] - The company is prepared to scale back activity and manage costs prudently if commodity prices weaken significantly [16] - Management expressed confidence in the operational momentum and financial position, expecting to deliver consistent results and preserve value through commodity cycles [28] Other Important Information - The company signed a landmark 25-year carbon offtake agreement for a low carbon ammonia facility, supporting the transportation and geologic storage of approximately 2,300,000 metric tons of CO2 annually [12] - The company anticipates approximately $1,000,000,000 in incremental pretax free cash flow from non-oil and gas sources in 2026, with further expansion in 2027 [28] Q&A Session Summary Question: Can you elaborate on CapEx and OpEx reductions for this year? - Management indicated that the reductions are a mix of efficiency gains and timeline adjustments, with no immediate impact on production expected [32][34] Question: How much of the free cash flow inflection is from operating cash flow versus capital spending reductions? - Management provided a breakdown of expected cash flow improvements from various segments, including chemicals and midstream [39][45] Question: What are the thoughts on divestitures at this point in the cycle? - Management stated that divestiture decisions are value-based, with options available for both short and long cycle assets [58] Question: Can you unpack the opportunities in Oman? - Management expressed excitement about the Block 53 extension and recent discoveries, indicating potential cash flow improvements [60][63] Question: What are the thoughts on the Low Carbon Ventures business? - Management highlighted the strong voluntary compliance market for carbon reduction credits and the potential for enhanced oil recovery using CO2 [70][72] Question: What are the expectations for U.S. oil supply in the near and long term? - Management noted that U.S. shale basins are plateauing or declining, with the Permian potentially plateauing sooner than expected due to reduced activity levels [77][78]

Core Insights - Occidental Petroleum Corporation (OXY) reported first-quarter 2025 earnings of 87 cents per share, exceeding the Zacks Consensus Estimate of 73 cents by 19.2% and showing a year-over-year improvement of 38.1% [1] - Total revenues for OXY were $6.84 billion, falling short of the Zacks Consensus Estimate of $7.14 billion by 4.3%, but reflecting a year-over-year increase of 13.9% [2] Financial Performance - Oil and Gas revenues reached $5.68 billion, up 15.6% year over year, while Chemical revenues were $1.18 billion, slightly higher than the previous year [3] - Midstream & Marketing revenues surged 105.1% year over year to $203 million [3] - Total production volume was 1,391 thousand barrels of oil equivalent per day (Mboe/d), aligning with the company's guidance of 1,370-1,410 Mboe/d, and total sales volume increased by 18.4% from the year-ago period [4] Price Realization - Realized prices for crude oil increased by 2% year over year to $71.07 per barrel, while realized natural gas liquids prices rose by 19% to $25.94 per barrel [5] - Natural gas prices saw a significant increase of 92% year over year, reaching $2.42 per thousand cubic feet [5] Operational Highlights - North America assets contributed 83.9% to total production, indicating strong domestic performance [6] - OxyChem reported a pre-tax income of $185 million, exceeding guidance by $15 million [6] Financial Position - As of March 31, 2025, OXY had cash and cash equivalents of $2.61 billion, up from $2.13 billion at the end of 2024 [8] - Long-term debt decreased to $24.03 billion from $24.97 billion, with $6.8 billion in debt retired over the last 10 months, reducing annual interest expenses by $370 million [8][9] - Operating cash flow for the first quarter was $3 billion, compared to $2.45 billion in the same quarter of 2024 [9] Future Guidance - For Q2 2025, OXY expects production between 1,377-1,417 Mboe/d, with Permian Resources segment output anticipated at 760-780 Mboe/d [10] - Exploration expenses are estimated at $105 million, and interest expenses at $275 million for the second quarter [10]

Core Viewpoint - Warren Buffett's significant investment in Occidental Petroleum is now perceived as a costly mistake as the company's stock price has plummeted due to falling oil prices, leading to a substantial decrease in the value of Berkshire Hathaway's investment [1][3]. Group 1: Investment Performance - Berkshire Hathaway has held a 28% stake in Occidental Petroleum since 2022, becoming its largest shareholder [1]. - Occidental Petroleum's stock price has dropped to a three-year low, closing at $39, with Berkshire's investment value decreasing by approximately $6.4 billion from its peak last year [1][3]. - The market is questioning how Buffett's successor, Greg Abel, will manage this investment amid ongoing low oil prices [3]. Group 2: Market Challenges - The company faces significant challenges due to a potential global economic slowdown, which could reduce oil demand, exacerbated by increased production from OPEC and its allies [5]. - Analysts indicate that lower oil prices will make it more difficult for Occidental Petroleum to reduce its relatively high debt levels compared to peers [5]. - There are concerns regarding the company's low-carbon initiatives, particularly its direct air capture projects, as potential cuts in federal funding for clean energy projects could impact future growth [5]. Group 3: Historical Context - Buffett's past investments in the oil sector have not always been successful, with notable losses during the 2008 economic downturn and the 2014 oil price crash after investing in ConocoPhillips and ExxonMobil [4]. - Buffett's recent silence on Occidental Petroleum during the Berkshire shareholder meeting suggests a possible decline in his enthusiasm for the investment [3].

Group 1 - The article discusses the benefits of subscribing to Beyond the Wall Investing, highlighting potential savings on equity research reports from banks [1] - The author has written two articles on Occidental Petroleum (NYSE: OXY), initiating bullish coverage in late September 2024 and updating the thesis in mid-September of the current year [1] - Beyond the Wall Investing offers features such as a fundamentals-based portfolio, weekly analysis from institutional investors, short-term trade alerts based on technical signals, and community chat [1] Group 2 - The article emphasizes that past performance is not indicative of future results and does not provide specific investment recommendations [2] - It clarifies that Seeking Alpha is not a licensed securities dealer or investment adviser, and the analysts are third-party authors who may not be certified [2]

05.08.25 First Quarter Earnings Conference Call CAUTIONARY STATEMENTS 2 Forward-Looking Statements This presentation 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 Petroleum Corporation's ("Occidental" or "Oxy") expectations, beliefs, plans or forecasts. Forward-looking statements involve estimates, expectations, projections, goals, forecasts, assumption ...

Group 1: Berkshire Hathaway's Portfolio Overview - Berkshire Hathaway's portfolio includes blue chip stocks that are generally considered safe long-term investments, although some are currently struggling [1][2] - Top holdings such as Apple, American Express, and Occidental Petroleum have all seen declines of at least 5% this year, with some experiencing drops over 20% [2] Group 2: Apple Inc. (AAPL) - Apple remains the top holding in Berkshire's portfolio, known for its strong financials, high margins, and significant free cash flow [4] - The company reported a 5% increase in net sales to $95.4 billion for the first three months of the year, generating nearly $54 billion in cash from operations over the past six months [5] - Despite a 20% decline in stock price this year due to concerns over its artificial intelligence strategy, it is viewed as a solid long-term investment, trading at 32 times trailing earnings compared to over 41 at the beginning of the year [6] Group 3: American Express (AXP) - American Express, the second-largest holding in Berkshire's portfolio, has seen its stock rally recently but was still down more than 5% entering the week [7] - The company reported a 7% increase in revenue and a 9% rise in earnings per share, alleviating concerns about slowing growth [8] - With a price-to-earnings multiple of less than 20, American Express is considered a reasonably priced investment, especially given its affluent customer base [8] Group 4: Occidental Petroleum (OXY) - Occidental Petroleum, the seventh-largest holding in Berkshire's portfolio, has faced a 21% decline this year amid lower commodity prices [9] - The company has experienced significant earnings volatility, with operating profits ranging from $4.7 billion to $13.7 billion over the past four years [10] - Investing in Occidental now could be advantageous for exposure to oil and gas, especially with a dividend yield of 2.4%, which surpasses the S&P 500 average of 1.4% [11]

Occidental Petroleum (OXY) reported $6.84 billion in revenue for the quarter ended March 2025, representing a year-over-year increase of 13.9%. EPS of $0.87 for the same period compares to $0.65 a year ago.The reported revenue represents a surprise of -4.27% over the Zacks Consensus Estimate of $7.15 billion. With the consensus EPS estimate being $0.73, the EPS surprise was +19.18%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to de ...

Core Viewpoint - Western Oil (OXY.US), favored by Warren Buffett, reported better-than-expected Q1 2025 earnings, with sales up 14% year-over-year to $6.84 billion and earnings per share (EPS) up 38% to $0.87, surpassing analyst expectations [1] Group 1: Financial Performance - Q1 sales reached $6.84 billion, slightly above the analyst average estimate of $6.83 billion [1] - EPS increased by 38% to $0.87, exceeding the analyst average estimate of $0.78, marking the fourth consecutive quarter of surpassing expectations [1] - Q1 production averaged 1.391 million barrels of oil equivalent per day, a 19% year-over-year increase [1] Group 2: Operational Efficiency - The company has focused on operational excellence and efficiency improvements, contributing to strong free cash flow performance [1] - Capital expenditure guidance for 2025 was lowered by $200 million, and domestic operating costs were reduced by $150 million due to ongoing efficiency improvements in the Permian Basin and the Gulf of Mexico [2] Group 3: Debt Management - Year-to-date, the company has repaid $2.3 billion in debt, with a total of $6.8 billion repaid since Q3 2024 [2] - All debt due in 2025 has been repaid, leaving only $284 million in debt due over the next 14 months [2] Group 4: Shareholder Insights - Berkshire Hathaway currently holds 28.2% of Western Oil's shares, valued at $12.4 billion, along with $8.5 billion in preferred shares and warrants to purchase an additional 83.9 million common shares for $5 billion [2] - Despite holding a significant stake, Buffett has expressed no intention to acquire more shares of the company [2]

分组1 - Occidental Petroleum reported quarterly earnings of $0.87 per share, exceeding the Zacks Consensus Estimate of $0.73 per share, and up from $0.65 per share a year ago [1] - The earnings surprise for the quarter was 19.18%, and the company has surpassed consensus EPS estimates in all of the last four quarters [2] - Revenues for the quarter were $6.84 billion, which missed the Zacks Consensus Estimate by 4.27%, compared to $6.01 billion in the same quarter last year [3] 分组2 - The stock has declined approximately 20.5% since the beginning of the year, while the S&P 500 has decreased by 4.7% [4] - The current consensus EPS estimate for the upcoming quarter is $0.58 on revenues of $7.01 billion, and for the current fiscal year, it is $2.47 on revenues of $28.72 billion [8] - The Oil and Gas - Integrated - United States industry is currently in the top 30% of Zacks industries, indicating a favorable outlook compared to the bottom 50% [9]