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]

Core Insights - Occidental Petroleum reported $6.84 billion in revenue for Q1 2025, a 13.9% year-over-year increase, with an EPS of $0.87 compared to $0.65 a year ago, although revenue fell short of the Zacks Consensus Estimate by 4.27% [1] Financial Performance - The reported revenue of $6.84 billion was below the consensus estimate of $7.15 billion, while the EPS of $0.87 exceeded the consensus estimate of $0.73 by 19.18% [1] - Net sales from oil and gas reached $5.68 billion, a 15.6% increase year-over-year, but below the average estimate of $5.71 billion [4] - Net sales from chemicals were $1.19 billion, slightly below the estimated $1.24 billion, representing a 0.2% increase year-over-year [4] - Midstream & marketing net sales were reported at $203 million, significantly higher than the estimated $429.84 million, showing a 105.1% year-over-year increase [4] - Interest, dividends, and other income amounted to $59 million, surpassing the average estimate of $38 million, reflecting a 63.9% year-over-year increase [4] Market Performance - Shares of Occidental have returned +8.8% over the past month, compared to the Zacks S&P 500 composite's +10.6% change, with a current Zacks Rank of 3 (Hold) indicating potential performance in line with the broader market [3]

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]

Part I - Financial Information [Item 1. Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents Occidental Petroleum Corporation's unaudited consolidated condensed financial statements for the quarter ended March 31, 2025, including balance sheets, statements of operations, comprehensive income, equity, and cash flows, along with detailed notes explaining accounting policies, revenue recognition, debt, acquisitions, derivatives, income taxes, environmental liabilities, legal matters, EPS, and segment information The financial statements are unaudited and prepared in accordance with US GAAP for interim reporting, reflecting all necessary normal recurring adjustments[25](index=25&type=chunk)[26](index=26&type=chunk) The financial results for Q1 2025 and Q1 2024 are not necessarily indicative of full-year performance[26](index=26&type=chunk) [Consolidated Condensed Balance Sheets](index=4&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) | millions | March 31, 2025 | December 31, 2024 | Change (QoQ) | | :--- | :--- | :--- | :--- | | **ASSETS** | | | | | Total current assets | $9,716 | $9,070 | +$646 | | Total property, plant and equipment, net | $68,227 | $69,378 | -$1,151 | | Total assets | $84,967 | $85,445 | -$478 | | **LIABILITIES AND EQUITY** | | | | | Total current liabilities | $9,623 | $9,521 | +$102 | | Long-term debt, net | $24,037 | $24,978 | -$941 | | Total equity | $35,105 | $34,480 | +$625 | | Total liabilities and equity | $84,967 | $85,445 | -$478 | [Consolidated Condensed Statements of Operations](index=6&type=section&id=Consolidated%20Condensed%20Statements%20of%20Operations) | millions, except per-share amounts | Three months ended March 31, 2025 | Three months ended March 31, 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Net sales | $6,803 | $5,975 | +$828 | | Total revenues and other income | $6,843 | $6,010 | +$833 | | Total costs and other deductions | $5,650 | $5,301 | +$349 | | Income from continuing operations before income taxes | $1,332 | $1,010 | +$322 | | Income tax expense | $(387) | $(304) | -$83 | | Income from continuing operations | $945 | $706 | +$239 | | Net income | $945 | $888 | +$57 | | Net income attributable to common stockholders | $766 | $718 | +$48 | | Net income attributable to common stockholders—basic (per share) | $0.81 | $0.81 | $0.00 | | Net income attributable to common stockholders—diluted (per share) | $0.77 | $0.75 | +$0.02 | [Consolidated Condensed Statements of Comprehensive Income](index=7&type=section&id=Consolidated%20Condensed%20Statements%20of%20Comprehensive%20Income) | millions | Three months ended March 31, 2025 | Three months ended March 31, 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Net income | $945 | $888 | +$57 | | Other comprehensive income (loss), net of tax | $(9) | $5 | -$14 | | Comprehensive income | $936 | $893 | +$43 | | Comprehensive income attributable to preferred and common stockholders | $927 | $893 | +$34 | [Consolidated Condensed Statements of Equity](index=8&type=section&id=Consolidated%20Condensed%20Statements%20of%20Equity) | millions | March 31, 2025 | December 31, 2024 | Change (QoQ) | | :--- | :--- | :--- | :--- | | Total stockholders' equity | $34,712 | $34,159 | +$553 | | Noncontrolling interest | $393 | $321 | +$72 | | Total equity | $35,105 | $34,480 | +$625 | - Common stock issued shares increased from 1,166,769,167 at Dec 31, 2024, to 1,170,361,105 at March 31, 2025[20](index=20&type=chunk) [Consolidated Condensed Statements of Cash Flows](index=9&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) | millions | Three months ended March 31, 2025 | Three months ended March 31, 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $2,148 | $2,007 | +$141 | | Net cash used by investing activities | $(731) | $(1,810) | +$1,079 | | Net cash used by financing activities | $(932) | $(328) | -$604 | | Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents | $485 | $(131) | +$616 | | Cash, cash equivalents, restricted cash and restricted cash equivalents — end of period | $2,642 | $1,333 | +$1,309 | [Notes to Consolidated Condensed Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Condensed%20Financial%20Statements) [Note 1—General](index=10&type=section&id=Note%201%E2%80%94General) - Occidental's financial statements are unaudited and condensed, prepared under US GAAP for interim reporting, and should be read with the 2024 Form 10-K[25](index=25&type=chunk) - Management believes the statements fairly present results, but Q1 performance is not indicative of the full year[26](index=26&type=chunk) | millions | 2025 | 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $2,612 | $1,272 | | Restricted cash and restricted cash equivalents | $30 | $61 | | Total cash, cash equivalents, restricted cash and restricted cash equivalents | $2,642 | $1,333 | | millions | 2025 | 2024 | | :--- | :--- | :--- | | Income tax payments | $490 | $152 | | Interest paid (net of capitalized interest) | $474 | $395 | - Occidental owns **43.5%** of WES limited partner units and consolidates a joint venture with BlackRock for a direct air capture facility as the primary beneficiary, accounting for BlackRock's investment as a non-controlling interest (NCI) using the HLBV method[30](index=30&type=chunk)[31](index=31&type=chunk)[34](index=34&type=chunk) [Note 2—Revenue](index=11&type=section&id=Note%202%E2%80%94Revenue) - Revenue is recognized upon delivery of oil, NGL, gas, chemicals, or services. Trade receivables of **$3.6 billion** as of March 31, 2025, represent satisfied obligations[35](index=35&type=chunk) | millions | Three months ended March 31, 2025 | Three months ended March 31, 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Revenue from customers | $6,911 | $6,731 | +$180 | | All other revenues | $(108) | $(756) | +$648 | | Net sales | $6,803 | $5,975 | +$828 | | millions (Q1 2025) | United States | International | Eliminations | Total | | :--- | :--- | :--- | :--- | :--- | | Oil and gas | $4,827 | $856 | — | $5,683 | | Chemical | $1,114 | $73 | — | $1,187 | | Midstream and marketing | $174 | $138 | — | $312 | | Consolidated | $6,115 | $1,067 | $(271) | $6,911 | [Note 3—Inventories](index=12&type=section&id=Note%203%E2%80%94Inventories) - Finished goods include oil (lower of weighted-average cost or net realizable value) and caustic soda/chlorine (LIFO method)[38](index=38&type=chunk) | millions | March 31, 2025 | December 31, 2024 | Change (QoQ) | | :--- | :--- | :--- | :--- | | Raw materials | $110 | $113 | -$3 | | Materials and supplies | $1,274 | $1,279 | -$5 | | Commodity inventory and finished goods | $848 | $796 | +$52 | | Total (before LIFO revaluation) | $2,232 | $2,188 | +$44 | | Revaluation to LIFO | $(93) | $(93) | $0 | | Total inventories | $2,139 | $2,095 | +$44 | [Note 4—Long-Term Debt](index=13&type=section&id=Note%204%E2%80%94Long-Term%20Debt) | millions | March 31, 2025 | December 31, 2024 | Change (QoQ) | | :--- | :--- | :--- | :--- | | Total borrowings at face value | $23,875 | $24,391 | -$516 | | Net book value of debt | $24,787 | $25,323 | -$536 | | Total debt and finance leases | $25,594 | $26,116 | -$522 | | Long-term debt, net | $24,037 | $24,978 | -$941 | - In Q1 2025, Occidental redeemed **$465 million** of senior notes due 2025 and repaid **$50 million** of a two-year term loan[41](index=41&type=chunk) - Subsequent to March 31, 2025, the company used asset sale proceeds and warrant exercise funds to pay **$1.4 billion** in current maturities and **$350 million** in long-term maturities, reducing principal debt outstanding to **$22.1 billion**[41](index=41&type=chunk) - The estimated fair value of debt was **$23.6 billion** as of March 31, 2025, down from **$24.0 billion** at December 31, 2024[42](index=42&type=chunk) [Note 5—Acquisitions and Divestitures](index=14&type=section&id=Note%205%E2%80%94Acquisitions%20and%20Divestitures) - The CrownRock Acquisition, completed in December 2023 for **$12.4 billion**, is substantially allocated as of March 31, 2025, with no material changes to the allocation[43](index=43&type=chunk) | millions, except per-share amounts | Three months ended March 31, 2024 (Pro Forma with CrownRock) | | :--- | :--- | | Revenues | $6,587 | | Net income attributable to common stockholders | $798 | | Net income attributable to common stockholders per share—basic | $0.87 | | Net income attributable to common stockholders per share—diluted | $0.81 | - In Q1 2025, Occidental sold non-core royalty/mineral interests in the DJ Basin for **~$900 million** and Permian Basin assets for **~$400 million**, with no gain or loss recognized[45](index=45&type=chunk) [Note 6—Derivatives](index=15&type=section&id=Note%206%E2%80%94Derivatives) - Occidental uses derivatives and physical contracts to manage commodity price and transportation exposure, and for trading purposes. Marketing derivatives are not designated as hedges[46](index=46&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk) | long (short) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Oil commodity contracts (MMbbl) | (62) | (34) | | Natural gas commodity contracts (Bcf) | (237) | (130) | | millions | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Marketing Derivatives (included in Net sales) | $(107) | $(238) | - Credit risk from physical delivery of energy commodities is managed by selecting strong counterparties, netting arrangements, and collateral requirements[53](index=53&type=chunk) [Note 7—Income Taxes](index=17&type=section&id=Note%207%E2%80%94Income%20Taxes) | millions | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Income before income taxes | $1,332 | $1,010 | | Total current tax expense | $(516) | $(395) | | Total deferred tax benefit | $129 | $91 | | Total income tax expense | $(387) | $(304) | | Worldwide effective tax rate | 29% | 30% | - The effective tax rate is driven by the jurisdictional mix of income, with U.S. federal statutory rate at **21%** and international rates up to **55%**[54](index=54&type=chunk) - The Inflation Reduction Act (IRA) impact is uncertain due to unfinalized guidance and a paused disbursement of funds[55](index=55&type=chunk) - Occidental does not anticipate a significant impact from the OECD Pillar Two global minimum tax initiative[56](index=56&type=chunk) [Note 8—Environmental Liabilities and Expenditures](index=18&type=section&id=Note%208%E2%80%94Environmental%20Liabilities%20and%20Expenditures) - Occidental is subject to stringent environmental laws and regulations, participating in or monitoring remedial activities at **157 sites**[57](index=57&type=chunk)[58](index=58&type=chunk) | millions, except number of sites | Number of Sites | Remediation Balance | | :--- | :--- | :--- | | NPL Sites | 32 | $1,371 | | Third-Party Sites | 62 | $196 | | Currently Operated Sites | 12 | $86 | | Closed or Non-Operated Sites | 51 | $248 | | Total | 157 | $1,901 | - Reasonably possible additional losses for environmental remediation could be up to **$1.9 billion**, with no material change since December 31, 2024[61](index=61&type=chunk) - For the Diamond Alkali Superfund Site (DASS), OxyChem has accrued a reserve for its estimated allocable share of remediation costs, but ultimate liability may be higher or lower[68](index=68&type=chunk)[69](index=69&type=chunk) [Note 9—Lawsuits, Claims, Commitments and Contingencies](index=19&type=section&id=Note%209%E2%80%94Lawsuits,%20Claims,%20Commitments%20and%20Contingencies) - Occidental is involved in various lawsuits and legal proceedings, including environmental matters, and accrues contingency reserves when probable and estimable[71](index=71&type=chunk)[72](index=72&type=chunk) - Unfavorable outcomes could materially affect future results, but current contingency reserves (excluding tax and environmental) are not material[72](index=72&type=chunk)[73](index=73&type=chunk) - The company is disputing an IRS disallowance of a **$5.2 billion** deduction related to the Tronox settlement, which could require repayment of approximately **$1.4 billion** in federal/state taxes and **$805 million** in accrued interest if Occidental does not prevail[77](index=77&type=chunk)[78](index=78&type=chunk) [Note 10—Earnings Per Share and Equity](index=21&type=section&id=Note%2010%E2%80%94Earnings%20Per%20Share%20and%20Equity) | millions except per-share amounts | Three months ended March 31, 2025 | Three months ended March 31, 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Net income attributable to common stock | $766 | $718 | +$48 | | Basic income per common share | $0.81 | $0.81 | $0.00 | | Diluted income per common share | $0.77 | $0.75 | +$0.02 | | Weighted-average number of basic shares | 941.3 | 884.1 | +57.2 | | Dilutive securities | 41.6 | 64.5 | -22.9 | - The Andes Arbitration settlement in 2024 resulted in a **$182 million** gain in discontinued operations for Q1 2024[81](index=81&type=chunk) - As of March 31, 2025, **83.9 million** common stock warrants were anti-dilutive and excluded from diluted shares[81](index=81&type=chunk) - In April 2025, Occidental issued **41.9 million** shares for approximately **$890 million** from a warrant exercise, used to repay near-term debt maturities[83](index=83&type=chunk) [Note 11—Segments](index=22&type=section&id=Note%2011%E2%80%94Segments) - Occidental operates through three segments: oil and gas, chemical, and midstream and marketing. The CEO is the CODM, using segment income (loss) from continuing operations before taxes to measure performance[84](index=84&type=chunk)[85](index=85&type=chunk) | millions | March 31, 2025 | March 31, 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Oil and gas segment income | $1,697 | $1,238 | +$459 | | Chemical segment income | $185 | $254 | -$69 | | Midstream and marketing segment losses | $(77) | $(33) | -$44 | | Corporate and eliminations | $(155) | $(165) | +$10 | | Interest and debt expense, net | $(318) | $(284) | -$34 | | Income from continuing operations before income taxes | $1,332 | $1,010 | +$322 | | millions (Q1 2025) | Oil and gas | Chemical | Midstream and marketing | Corporate and eliminations | Total | | :--- | :--- | :--- | :--- | :--- | | PP&E Additions | $1,568 | $224 | $152 | $18 | $1,962 | | Investments in unconsolidated entities | $115 | $505 | $2,501 | — | $3,121 | | Total Assets | $61,768 | $5,431 | $14,110 | $3,658 | $84,967 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Occidental's financial performance, condition, and results of operations for the three months ended March 31, 2025, compared to prior periods. It covers business outlook, consolidated and segment results, income taxes, liquidity, capital resources, and environmental and legal matters - Operations, financial condition, cash flows, and expenditures are highly dependent on oil, NGL, and natural gas prices, Midland-to-Gulf-Coast oil spreads, chemical product prices, and inflationary pressures[95](index=95&type=chunk) - The average WTI price per barrel for the three months ended March 31, 2025, was **$71.42**, compared to **$70.27** for the three months ended December 31, 2024 and **$76.96** for the three months ended March 31, 2024[95](index=95&type=chunk) - Geopolitical risks, macroeconomic environment, OPEC actions, and potential new tariffs could impact oil prices and business costs[96](index=96&type=chunk)[98](index=98&type=chunk) [Cautionary Statement Regarding Forward-Looking Statements](index=25&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) - The report contains forward-looking statements, which are not guarantees of future performance and are subject to various risks and uncertainties[92](index=92&type=chunk)[93](index=93&type=chunk) - Factors that could cause actual results to differ include economic conditions, indebtedness, commodity price volatility, government actions, inflation, regulatory changes, and operational risks[93](index=93&type=chunk) - Occidental does not undertake to update or withdraw forward-looking statements unless legally required[92](index=92&type=chunk) [Current Business Outlook](index=26&type=section&id=Current%20Business%20Outlook) - Occidental's strategic priorities include maintaining production, delivering a sustainable dividend, prioritizing deleveraging to below **$15 billion** principal debt, enhancing assets, and advancing low-carbon solutions[99](index=99&type=chunk)[104](index=104&type=chunk) - As of March 31, 2025, long-term debt ratings were Baa3 (Moody's Investors Service), BBB- (Fitch Ratings), and BB+ (Standard and Poor's)[100](index=100&type=chunk) - Approximately **89%** of outstanding debt was fixed rate as of March 31, 2025[102](index=102&type=chunk) - Proceeds from asset sales and warrant exercises were used to repay **$465 million** of senior notes and **$50 million** of a term loan in Q1 2025, and an additional **$1.75 billion** in maturities post-quarter[101](index=101&type=chunk)[103](index=103&type=chunk) [Consolidated Results of Operations and Items Affecting Comparability](index=27&type=section&id=Consolidated%20Results%20of%20Operations%20and%20Items%20Affecting%20Comparability) | millions | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :--- | :--- | :--- | :--- | | Net income (loss) attributable to common stockholders | $766 | $(297) | $718 | | Net income (loss) per share attributable to common stockholders - diluted | $0.77 | $(0.32) | $0.75 | - Excluding comparability items, Q1 2025 net income increased QoQ due to higher domestic oil and gas prices, offset by lower sales volumes and higher chemical costs[107](index=107&type=chunk) - Excluding comparability items, Q1 2025 net income increased YoY due to higher oil and gas sales volumes and domestic gas/NGL prices, partially offset by lower oil prices and higher chemical costs[108](index=108&type=chunk) - Net sales for Q1 2025 were **$6.8 billion**, consistent with Q4 2024 due to higher commodity prices offsetting lower sales volumes, and increased from **$6.0 billion** in Q1 2024 due to higher volumes and domestic natural gas prices[109](index=109&type=chunk)[111](index=111&type=chunk) - Depreciation, depletion, and amortization increased to **$1.9 billion** in Q1 2025 from **$1.7 billion** in Q1 2024, primarily related to increased sales volumes in the Permian Basin from the CrownRock Acquisition[112](index=112&type=chunk) [Segment Results of Operations](index=29&type=section&id=Segment%20Results%20of%20Operations) [OIL AND GAS SEGMENT](index=29&type=section&id=OIL%20AND%20GAS%20SEGMENT) | Sales Volumes per Day (Mbbl/MMcf) | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :--- | :--- | :--- | :--- | | Oil (United States) | 601 | 634 | 487 | | Oil (International) | 104 | 102 | 109 | | NGL (United States) | 273 | 310 | 242 | | NGL (International) | 39 | 39 | 38 | | Natural Gas (United States, MMcf) | 1,756 | 1,732 | 1,284 | | Natural Gas (International, MMcf) | 488 | 534 | 511 | | Total Sales Volumes (Mboe) | 1,391 | 1,463 | 1,175 | | Average Realized Prices | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :--- | :--- | :--- | :--- | | Worldwide oil ($/Bbl) | $71.07 | $69.73 | $76.04 | | Worldwide NGL ($/Bbl) | $25.94 | $21.80 | $22.14 | | Worldwide Natural Gas ($/Mcf) | $2.30 | $1.41 | $1.68 | - Q1 2025 oil and gas segment earnings increased QoQ to **$1.7 billion** from **$1.2 billion**, driven by higher domestic prices and other revenues, despite lower sales volumes due to ethane rejection, weather, and maintenance[116](index=116&type=chunk)[117](index=117&type=chunk) - Q1 2025 oil and gas segment earnings increased YoY to **$1.7 billion** from **$1.2 billion**, primarily due to higher domestic sales volumes (CrownRock Acquisition) and natural gas/NGL prices, partially offset by lower domestic crude oil prices[118](index=118&type=chunk)[119](index=119&type=chunk) [CHEMICAL SEGMENT](index=31&type=section&id=CHEMICAL%20SEGMENT) - Q1 2025 chemical segment earnings decreased QoQ to **$185 million** from **$270 million**, primarily due to lower realized caustic soda and polyvinyl chloride prices, and higher ethylene and natural gas costs[121](index=121&type=chunk) - Q1 2025 chemical segment earnings decreased YoY to **$185 million** from **$254 million**, reflecting lower prices across most product lines (except caustic soda) and higher ethylene and natural gas costs[122](index=122&type=chunk) [MIDSTREAM AND MARKETING SEGMENT](index=32&type=section&id=MIDSTREAM%20AND%20MARKETING%20SEGMENT) - Q1 2025 midstream and marketing segment losses improved QoQ to **$77 million** from **$134 million**, driven by higher crude margins (timing impact) and higher sulfur prices at Al Hosn[124](index=124&type=chunk) - Q1 2025 midstream and marketing segment losses increased YoY to **$77 million** from **$33 million**, reflecting higher gas margins from transportation capacity optimization and higher sulfur prices, partially offset by lower crude sales margins[125](index=125&type=chunk) - This segment also includes Occidental's low-carbon ventures, focusing on carbon capture, utilization, and storage projects, including direct air capture technology[113](index=113&type=chunk) [Income Taxes](index=32&type=section&id=Income%20Taxes) | millions, except percentages | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :--- | :--- | :--- | :--- | | Income (loss) before income taxes | $1,332 | $(169) | $1,010 | | Total income tax (expense) benefit | $(387) | $49 | $(304) | | Worldwide effective tax rate | 29% | 29% | 30% | - The effective tax rate is influenced by the jurisdictional mix of income, with U.S. federal statutory rate at **21%** and international rates up to **55%**[127](index=127&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) - As of March 31, 2025, liquidity sources included **$2.6 billion** cash, **$4.15 billion** borrowing capacity under RCF, and **$600 million** from receivables securitization facility[129](index=129&type=chunk) - Operating cash flow from continuing operations increased to **$2.1 billion** in Q1 2025 from **$2.0 billion** in Q1 2024, driven by higher sales volumes (including CrownRock and GOA), offset by higher working capital use[130](index=130&type=chunk) - Net cash used by investing activities decreased to **$0.7 billion** in Q1 2025 from **$1.8 billion** in Q1 2024, primarily due to **$1.3 billion** in divestitures of non-core oil and gas assets[131](index=131&type=chunk) - Capital expenditures were **$1.9 billion** in Q1 2025, up from **$1.8 billion** in Q1 2024, mainly for the oil and gas segment[132](index=132&type=chunk) - Net cash used by financing activities was **$0.9 billion** in Q1 2025, including **$0.5 billion** in long-term debt payments and **$0.4 billion** in dividends[133](index=133&type=chunk) - No debt maturities are due in 2025, with **$2.9 billion** in 2026, **$1.5 billion** in 2027, and **$17.7 billion** thereafter[136](index=136&type=chunk) [Environmental Liabilities and Expenditures](index=33&type=section&id=Environmental%20Liabilities%20and%20Expenditures) - Occidental's operations are subject to stringent federal, regional, state, provincial, tribal, local and international laws and regulations related to improving or maintaining environmental quality, with compliance costs expected to rise[138](index=138&type=chunk) - The company is involved in remedial activities at various sites under laws like CERCLA, which can apply retroactively and regardless of fault[139](index=139&type=chunk) - Environmental proceedings seek funding for remediation, compensation for damages, penalties, and injunctive relief[139](index=139&type=chunk) [Lawsuits, Claims, Commitments and Contingencies](index=34&type=section&id=Lawsuits,%20Claims,%20Commitments%20and%20Contingencies) - Occidental accrues reserves for outstanding lawsuits, claims and proceedings when it is probable that a liability has been incurred and the liability can be reasonably estimated[141](index=141&type=chunk) - Information on environmental remediation reserves and potential additional losses is detailed in Note 8 and Note 9[141](index=141&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section states that there were no material changes in market risk disclosures from the information provided in the 2024 Form 10-K for the three months ended March 31, 2025 - No material changes occurred in quantitative and qualitative disclosures about market risk during Q1 2025 compared to the 2024 Form 10-K[142](index=142&type=chunk) [Item 4. Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms that Occidental's disclosure controls and procedures were effective as of March 31, 2025, and there were no material changes in internal control over financial reporting during the quarter - Occidental's disclosure controls and procedures were effective as of March 31, 2025[143](index=143&type=chunk) - No material changes in internal control over financial reporting occurred during Q1 2025[144](index=144&type=chunk) Part II - Other Information [Item 1. Legal Proceedings](index=34&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 9 for detailed information on legal proceedings, noting that Occidental uses a $1 million threshold for disclosing certain environmental proceedings - Information regarding legal proceedings is provided in Note 9[145](index=145&type=chunk) - Occidental uses a **$1 million** threshold for disclosing certain environmental proceedings involving governmental authorities and potential monetary sanctions[145](index=145&type=chunk) [Item 1A. Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) This section states that there have been no material changes to the risk factors previously disclosed in Occidental's 2024 Form 10-K - No material changes to risk factors were reported from the 2024 Form 10-K[146](index=146&type=chunk) [Item 5. Other Information](index=34&type=section&id=Item%205.%20Other%20Information) This section confirms that no director or Section 16 officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the first quarter of 2025 - No director or Section 16 officer adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in Q1 2025[147](index=147&type=chunk) [Item 6. Exhibits](index=35&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications from the CEO and CFO, and various Inline XBRL documents - Exhibits include CEO and CFO certifications (Sections 302 and 906 of Sarbanes-Oxley Act) and Inline XBRL documents[150](index=150&type=chunk)

Financial Performance - Average diluted shares outstanding for Q1 2025 were 982.9 million shares[2] - Average realized oil prices for the United States were $70.80 per barrel, and $72.59 internationally, with a total worldwide average of $71.07 per barrel[3] - Average realized NGL prices for the United States were $25.67 per barrel, and $27.85 internationally, with a total worldwide average of $25.94 per barrel[3] - Average realized natural gas prices for the United States were $2.42 per Mcf, and $1.90 internationally, with a total worldwide average of $2.30 per Mcf[3] - Worldwide oil prices were 100% of average WTI prices and 95% of average Brent prices[3] - Domestic natural gas prices were 67% of average NYMEX prices[3] Forward-Looking Statements - The company emphasizes that actual outcomes may differ materially from anticipated results due to various factors, including economic conditions and commodity pricing fluctuations[5] - Forward-looking statements include expectations about future operations and financial performance, but should not be relied upon without caution[4] - The company does not undertake any obligation to update forward-looking statements unless legally required[4] - Additional information regarding factors affecting financial results can be found in the company's filings with the U.S. Securities and Exchange Commission[7]

Core Viewpoint - Occidental announced its first quarter 2025 financial results, with further details available on its website and the SEC [1] Financial Results - The company will hold a conference call on May 8, 2025, to discuss the financial results, accessible via phone or webcast [2] Company Overview - Occidental is an international energy company with significant assets in the U.S., Middle East, and North Africa, being one of the largest oil and gas producers in the U.S. [3] - The company operates in the Permian and DJ basins and offshore Gulf of America, with a midstream and marketing segment that enhances the value of its oil and gas [3] - Occidental is committed to carbon management and advancing lower-carbon technologies through its Oxy Low Carbon Ventures subsidiary [3]

Core Viewpoint - Analysts expect Occidental Petroleum (OXY) to report quarterly earnings of $0.73 per share, reflecting a year-over-year increase of 12.3%, with revenues projected at $7.15 billion, up 18.9% from the previous year [1] Earnings Estimates - The consensus EPS estimate has been revised 28.1% lower over the last 30 days, indicating a reevaluation of initial estimates by analysts [1][2] Revenue Projections - Analysts forecast 'Net sales- Oil and gas' to reach $5.71 billion, suggesting a year-over-year change of +16.3% [3] - 'Net sales- Chemical' is expected to be $1.24 billion, indicating a +4.5% change from the year-ago quarter [4] - 'Net sales- Midstream & marketing' is projected at $429.84 million, reflecting a significant year-over-year change of +334.2% [4] Segment Revenue Estimates - 'Revenue- Oil - United States' is expected to reach $3.92 billion, a +17.1% change from the previous year [5] - 'Revenue- NGL - United States' is projected at $545.18 million, indicating a +31.1% year-over-year change [5] - 'Revenue- GAS - United States' is estimated at $376.86 million, reflecting a substantial +101.5% increase from the prior year [5] Production Volumes - 'Worldwide Sales - Total Continuing Operations Production Per Day' is expected to reach 1,395.28 million barrels of oil equivalent, up from 1,172 million barrels of oil equivalent in the same quarter last year [6] - 'Net Production Volumes Per Day By Commodity - Natural Gas - Total Worldwide' is estimated at 2,237.96 million cubic feet, compared to 1,796 million cubic feet reported in the same quarter last year [7] - 'Net Production Volumes Per Day By Commodity - Oil - Total Worldwide' is projected at 706.54 million barrels, up from 593 million barrels in the same quarter last year [9] Pricing Estimates - 'Average Realized Prices - NGLs - Total Worldwide' is expected to be $24.09 per barrel of oil equivalent, compared to $22.14 per barrel of oil equivalent in the same quarter last year [8] Market Performance - Shares of Occidental have shown a return of +0.2% over the past month, while the Zacks S&P 500 composite has changed by +11.5% [10]