Core Insights - Occidental Petroleum Corporation (OXY) reported third-quarter 2025 earnings of 64 cents per share, exceeding the Zacks Consensus Estimate of 48 cents by 33.3%, although this represents a 36% decline year over year [1] - Total revenues for the quarter were $6.71 billion, slightly missing the Zacks Consensus Estimate of $6.72 billion by 0.07% and down 6.21% year over year due to declining commodity prices [2] - The company plans to sell its chemical business, Oxychem, to Berkshire Hathaway for $9.7 billion to reduce debt and strengthen its balance sheet [10] Financial Performance - GAAP earnings for the quarter were 65 cents per share, down from 98 cents in the same quarter last year, with a 1-cent impact from after-tax non-core adjustments [1] - Oil and Gas revenues totaled $5.4 billion, down 5.14% year over year, while Chemical revenues were $1.17 billion, down 6.4% year over year [3] - Total production volume was 1,465 thousand barrels of oil equivalent per day (Mboe/d), exceeding guidance of 1,415-1,455 Mboe/d, and total sales volume was 1,468 Mboe/d, up 4.04% from the previous year [4] Price Realization - Realized prices for crude oil decreased by 14% year over year to $64.78 per barrel, while realized natural gas liquids prices fell 4.3% to $19.6 per barrel; however, natural gas prices surged 270% year over year to $1.48 per thousand cubic feet [5] Operational Highlights - The company achieved the highest quarterly uptime in the Gulf of America in the last six years, contributing to strong production volumes [7] - Production from the Permian Basin reached 800 Mboe/d, a 9.7% increase from the previous year, aided by 436 wells coming online [9] Financial Position - As of September 30, 2025, Occidental had cash and cash equivalents of $2.15 billion and long-term debt of $20.84 billion, down from $24.97 billion at the end of 2024 [11] - The company generated $7.89 billion in operating cash flow in the first nine months of 2025, compared to $8.08 billion in the same period of 2024 [12] Future Guidance - For the fourth quarter of 2025, OXY expects production between 1,440-1,480 Mboe/d, with Permian Resources output anticipated at 795-815 Mboe/d [13] - Capital expenditure for the fourth quarter is projected to be $1.7 billion, with expectations for improved Midstream and Marketing income due to lower tariff rates [14]

Core Viewpoint - Occidental Petroleum (NYSE: OXY) is considered a buy for Q4 2025, primarily due to the affirmation of the investment thesis established by Berkshire Hathaway's stock purchases nearly four years ago, focusing on growth through operational quality, profitability, cash flow, and shareholder value [1] Financial Performance - Key takeaways from the Q3 release include a significant debt repayment, reducing net debt by 18% year-over-year and 10% quarter-over-quarter, which enhances cash flow and capital return outlook [2] - Occidental's net revenue for Q3 was $6.72 billion, down 6% year-over-year and $20 million below expectations, but adjusted earnings were 64 cents, outperforming the consensus by 3,000 basis points [4] - Free cash flow was approximately $1.5 billion, allowing for dividend payments, reinvestments, and debt reduction, with a positive outlook for dividends as the company aims to return to pre-COVID payment levels [5] Operational Highlights - The sale of OxyChem to Berkshire Hathaway will provide nearly $10 billion in cash, improving operating margins and facilitating further debt reduction, thereby enhancing shareholder value [2] - The company's equity increased by approximately 5% year-over-year in Q3, with expectations for continued growth [3] Dividend Information - As of mid-November, the dividend yield stands at 2.3%, more than double the broad market average, and accounts for less than 30% of free cash flow [6] Strategic Execution - Occidental Petroleum is effectively executing its plans to improve shareholder value, with operational quality, cash flow, and debt reduction being key drivers [7]

Core Viewpoint - Morgan Stanley has raised the target price for Occidental Petroleum (OXY.US) from $50 to $51 [1] Group 1 - The adjustment in target price reflects a positive outlook on Occidental Petroleum's performance [1]

Core Viewpoint - Oman Gas Company has signed 19 strategic gas agreements and memorandums of understanding with domestic and international companies, establishing extensive partnerships with investors from India, China, the United States, France, and Kuwait [1] Group 1: Agreements and Financials - The signing ceremony included 14 gas sales agreements with a total value exceeding 3.4 billion Omani Rials [1] - New investments amounting to over 2 billion Omani Rials were also announced during the ceremony [1] Group 2: Key Partnerships - Three gas purchase agreements were signed with major producers: Occidental Oman (covering blocks 62 and 65) and Energy Development Oman (covering block 6) [1] - Two memorandums of understanding were signed with subsidiaries and projects of OQ Group, including the Duqm petrochemical complex and OQ alternative energy projects [1]

Core Insights - The article discusses the analysis of oil and gas companies, particularly focusing on Occidental Petroleum and similar firms, highlighting the search for undervalued entities in the sector [1] - It emphasizes the cyclical nature of the oil and gas industry, which requires patience and experience for successful investment [2] Company Analysis - The service provided includes a comprehensive breakdown of companies' balance sheets, competitive positions, and development prospects [1] - The focus is on under-followed oil companies and out-of-favor midstream companies that present compelling investment opportunities [2] Community Engagement - The investing group offers an active chat room for investors to discuss recent information and share ideas related to oil and gas investments [2]

Core Viewpoint - Occidental Petroleum anticipates flat production growth in 2026 and a decrease in spending below current-year levels due to declining crude prices [1] Company Summary - Occidental Petroleum projects no growth in production for 2026 [1] - The company expects its spending to fall below the levels of the current year [1] - The anticipated changes are attributed to a slide in crude prices [1]

Core Insights - Occidental Petroleum Corp. reported mixed third-quarter results, with earnings exceeding analyst expectations but revenue slightly below forecasts [1] Financial Performance - Non-GAAP earnings were $0.64 per share, matching analyst estimates [1] - Revenue totaled $6.72 billion, just below projections of $6.76 billion [1] Production and Pricing - Higher crude oil volumes and prices supported earnings compared to the previous quarter [2] - The average realized worldwide crude oil price increased by 2% sequentially to $64.78 per barrel [2] - Average natural gas liquids prices declined by 5%, while domestic natural gas prices rose by 11% [2] Operational Efficiency - Total global production averaged 1.465 million barrels of oil equivalent per day (Mboed), up from 1.412 Mboed in the same period last year [3] - The company benefited from improved efficiency across its operations amid steady commodity market conditions [3]

Financial Data and Key Metrics Changes - The company reported a profit of $0.65 per diluted share for Q3 2025, generating approximately $1.5 billion in free cash flow before working capital adjustments [22][24] - Operating cash flow reached $3.2 billion, exceeding last year's Q3 performance despite lower WTI prices [8][22] - The principal debt balance was reduced to $20.8 billion after repaying $1.3 billion of debt in the quarter, with a total year-to-date repayment of $3.6 billion [22][28] Business Line Data and Key Metrics Changes - The oil and gas business produced approximately 1.47 million barrels of oil equivalent (BOE) per day, exceeding guidance, with the Permian Basin contributing 800,000 BOE per day, marking the highest quarterly production in Oxy's history [9][22] - The midstream and marketing segment generated positive adjusted earnings of $153 million, surpassing guidance due to strategic gas marketing and higher sulfur prices [23][24] Market Data and Key Metrics Changes - The company shifted its oil and gas production from 50% domestic to 83% domestic, reducing geopolitical risk [5] - The ongoing improvement in portfolio and operational performance was highlighted, with the lowest quarterly lease operating expense per barrel since 2021 at $8.11 per BOE [8][23] Company Strategy and Development Direction - The sale of OxyChem is a pivotal step in the company's transformation, aimed at strengthening the balance sheet and enhancing shareholder returns [4][7] - The company plans to focus capital on Permian unconventional assets and Gulf of Mexico water floods, with an emphasis on low-decline enhanced oil recovery projects [7][30] - The company is targeting a $55-$60 WTI plan for 2026, with flexibility to adapt to market conditions while improving cost efficiency [21][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate changing market conditions and emphasized a disciplined approach to capital allocation [20][21] - The company aims to maintain a strong balance sheet with a cash reserve of $3 billion to $4 billion while being opportunistic in share repurchases [54][57] - Management highlighted the importance of operational efficiency and cost management to sustain free cash flow even in challenging oil price environments [20][62] Other Important Information - The company has a development runway of over 30 years, focusing on high-return, short-cycle, and lower decline assets [5][7] - The OxyChem transaction is expected to lower annual interest expenses by more than $350 million and improve credit metrics significantly [28] Q&A Session Summary Question: Capital spending outlook for next year - Management indicated that capital spending for next year could be between $6.3 billion and $6.7 billion, with a larger proportion allocated to U.S. onshore projects for flexibility [34][35] Question: Resource and drilling backlog - Management emphasized the importance of resource characterization over drilling inventory, highlighting advancements in unconventional shale improvements [37][38] Question: CO2 injection applicability on older wells - Management confirmed that CO2 injection techniques can be applied to both older and more recent wells, with significant potential for production uplift [41][42] Question: Return of capital strategy - Management stated that debt reduction will be prioritized before opportunistically repurchasing shares, maintaining a flexible approach to capital allocation [54][57] Question: Exploration focus in the coming years - Management indicated that exploration will remain a lower priority as the company focuses on optimizing existing resources and enhancing recovery techniques [59][60]

Financial Data and Key Metrics Changes - The company reported a profit of $0.65 per diluted share for the third quarter, generating approximately $1.5 billion in free cash flow before working capital adjustments [22][24] - Operating cash flow reached $3.2 billion, exceeding last year's third quarter despite lower WTI prices [8][22] - The principal debt balance was reduced to $20.8 billion after repaying $1.3 billion of debt in the quarter, with a total year-to-date repayment of $3.6 billion [22][28] Business Line Data and Key Metrics Changes - The oil and gas business produced approximately 1.47 million barrels of oil equivalent (BOE) per day, exceeding guidance, with the Permian Basin contributing 800,000 BOE per day, the highest quarterly production in Oxy's history [9][22] - The midstream and marketing segment generated positive adjusted earnings of $153 million, surpassing guidance due to strategic gas marketing and higher sulfur prices [23][24] Market Data and Key Metrics Changes - The company shifted its oil and gas production from 50% domestic to 83% domestic, reducing geopolitical risk [5] - The Gulf of America assets outperformed guidance, benefiting from favorable weather and achieving the highest uptime in operating history [9][23] Company Strategy and Development Direction - The sale of OxyChem is a pivotal step in the company's transformation, aimed at strengthening the balance sheet and enhancing shareholder returns [4][7] - The company plans to focus capital on Permian unconventional assets and enhance oil recovery projects, particularly CO2 EOR projects [7][18] - The company is targeting a $55-$60 WTI plan for 2026, with flexibility to adapt to market conditions [21][62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate free cash flow even in challenging oil price environments, emphasizing operational and cost efficiency [20][21] - The company highlighted a strong portfolio of short-cycle, high-return, and mid-cycle low-decline assets that can deliver strong cash flow [21][67] Other Important Information - The company achieved $2 billion in annualized cost savings across U.S. onshore operations since 2023, driven by operational improvements [12] - The company plans to reallocate up to $400 million to short-cycle high-return projects, primarily in the Permian, while maintaining flexibility in capital allocation [30] Q&A Session Summary Question: Can you clarify the capital spending outlook for next year? - The company expects capital spending to be between $6.3 billion and $6.7 billion, with increased investment in U.S. onshore projects [34][35] Question: What is the status of the Permian resource and drilling inventory? - The company has added $2.5 billion in resources in the Permian, with a focus on unconventional shale improvements and a break-even for annual projects expected to remain below $40 [37][39] Question: Can you provide details on the CO2 injection pilot project? - The pilot project demonstrated a 45% uplift in production, with potential for further increases through continued CO2 injection cycles [42][44] Question: How will the company manage legacy liabilities post-OxyChem sale? - The company indicated that legacy liabilities are minimal and manageable, with annual costs around $20 million [55][56] Question: What are the plans for share repurchases following the OxyChem sale? - The company plans to prioritize debt reduction before considering opportunistic share repurchases, maintaining a cash balance of $3 billion to $4 billion [54][57]

Financial Data and Key Metrics Changes - In Q3 2025, the company reported a profit of $0.65 per diluted share, generating approximately $1.5 billion in free cash flow before working capital adjustments [21][22] - Operating cash flow reached $3.2 billion, exceeding last year's Q3 performance despite lower WTI prices [7][21] - The company repaid $1.3 billion of debt in the quarter, reducing the total principal debt balance to $20.8 billion [22][27] Business Line Data and Key Metrics Changes - The oil and gas business produced approximately 1.47 million barrels of oil equivalent (BOE) per day, exceeding guidance, with the Permian Basin contributing 800,000 BOE per day, marking the highest quarterly production in Oxy's history [9][23] - The midstream and marketing segment generated positive adjusted earnings of $153 million, surpassing guidance due to strategic gas marketing [23][24] Market Data and Key Metrics Changes - The company shifted its oil and gas production from 50% domestic to 83% domestic, reducing geopolitical risk [5] - The Gulf of Mexico assets achieved the highest uptime in operating history, benefiting from favorable weather conditions [9] Company Strategy and Development Direction - The sale of OxyChem is a pivotal step in the company's transformation, aimed at strengthening the balance sheet and enhancing shareholder returns [4][6] - The company plans to focus capital on Permian unconventional assets and Gulf of Mexico water floods, with an emphasis on low-decline enhanced oil recovery projects [6][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate changing market conditions with a focus on operational efficiency and cost management [19][20] - The company is targeting a $55-$60 WTI plan for 2026, with flexibility to adapt to market conditions while maintaining operational performance [20][21] Other Important Information - The company has a development runway of over 30 years, with a focus on high-return, short-cycle assets [5] - The OxyChem transaction is expected to lower annual interest expenses by more than $350 million and improve credit metrics [27] Q&A Session Summary Question: Can you clarify the capital spending outlook for next year? - Management indicated that capital spending could range between $6.3 billion and $6.7 billion, with increased investment in Gulf of Mexico water flood projects and Oman [33][34] Question: What is the sustaining capital break-even for the portfolio? - Management stated that annual program break-evens are all less than $40, with ongoing improvements in resource expansion and cost efficiency [38][40] Question: How will the water flood projects impact productive capacity in the Gulf of Mexico? - The water flood projects are expected to improve recoveries by nearly 150 million BOE and significantly reduce decline rates over time [46][47] Question: What are the plans for share repurchases and addressing legacy liabilities? - Management plans to prioritize debt reduction before opportunistically repurchasing shares, with legacy liabilities having minimal impact on operations [55][56]