Part I - Financial Information Item 1. Financial Statements (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 adjustments2526 The financial results for Q1 2025 and Q1 2024 are not necessarily indicative of full-year performance26 Consolidated Condensed Balance Sheets | 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 | 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 | 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 | 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, 202520 Consolidated Condensed Statements of Cash Flows | 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 Note 1—General - Occidental's financial statements are unaudited and condensed, prepared under US GAAP for interim reporting, and should be read with the 2024 Form 10-K25 - Management believes the statements fairly present results, but Q1 performance is not indicative of the full year26 | 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 method303134 Note 2—Revenue - 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 obligations35 | 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 - Finished goods include oil (lower of weighted-average cost or net realizable value) and caustic soda/chlorine (LIFO method)38 | 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 | 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 loan41 - 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 billion41 - The estimated fair value of debt was $23.6 billion as of March 31, 2025, down from $24.0 billion at December 31, 202442 Note 5—Acquisitions and Divestitures - 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 allocation43 | 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 recognized45 Note 6—Derivatives - Occidental uses derivatives and physical contracts to manage commodity price and transportation exposure, and for trading purposes. Marketing derivatives are not designated as hedges464748 | 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 requirements53 Note 7—Income Taxes | 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 - The Inflation Reduction Act (IRA) impact is uncertain due to unfinalized guidance and a paused disbursement of funds55 - Occidental does not anticipate a significant impact from the OECD Pillar Two global minimum tax initiative56 Note 8—Environmental Liabilities and Expenditures - Occidental is subject to stringent environmental laws and regulations, participating in or monitoring remedial activities at 157 sites5758 | 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, 202461 - 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 lower6869 Note 9—Lawsuits, Claims, Commitments and Contingencies - Occidental is involved in various lawsuits and legal proceedings, including environmental matters, and accrues contingency reserves when probable and estimable7172 - Unfavorable outcomes could materially affect future results, but current contingency reserves (excluding tax and environmental) are not material7273 - 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 prevail7778 Note 10—Earnings Per Share and Equity | 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 202481 - As of March 31, 2025, 83.9 million common stock warrants were anti-dilutive and excluded from diluted shares81 - In April 2025, Occidental issued 41.9 million shares for approximately $890 million from a warrant exercise, used to repay near-term debt maturities83 Note 11—Segments - 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 performance8485 | 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 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 pressures95 - 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, 202495 - Geopolitical risks, macroeconomic environment, OPEC actions, and potential new tariffs could impact oil prices and business costs9698 Cautionary Statement Regarding Forward-Looking Statements - The report contains forward-looking statements, which are not guarantees of future performance and are subject to various risks and uncertainties9293 - Factors that could cause actual results to differ include economic conditions, indebtedness, commodity price volatility, government actions, inflation, regulatory changes, and operational risks93 - Occidental does not undertake to update or withdraw forward-looking statements unless legally required92 Current Business Outlook - 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 solutions99104 - 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 - Approximately 89% of outstanding debt was fixed rate as of March 31, 2025102 - 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-quarter101103 Consolidated Results of Operations and Items Affecting Comparability | 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 costs107 - 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 costs108 - 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 prices109111 - Depreciation, depletion, and amortization increased to $1.9 billion in Q1 2025 from $1.7 billion in Q1 2024, primarily related to increased sales volumes in the Permian Basin from the CrownRock Acquisition112 Segment Results of Operations OIL AND GAS SEGMENT | Sales Volumes per Day (Mbbl/MMcf) | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :--- | :--- | :--- | :--- | | Oil (United States) | 601 | 634 | 487 | | Oil (International) | 104 | 102 | 109 | | NGL (United States) | 273 | 310 | 242 | | NGL (International) | 39 | 39 | 38 | | Natural Gas (United States, MMcf) | 1,756 | 1,732 | 1,284 | | Natural Gas (International, MMcf) | 488 | 534 | 511 | | Total Sales Volumes (Mboe) | 1,391 | 1,463 | 1,175 | | Average Realized Prices | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :--- | :--- | :--- | :--- | | Worldwide oil ($/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 maintenance116117 - 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 prices118119 CHEMICAL SEGMENT - 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 costs121 - 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 costs122 MIDSTREAM AND MARKETING SEGMENT - 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 Hosn124 - 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 margins125 - This segment also includes Occidental's low-carbon ventures, focusing on carbon capture, utilization, and storage projects, including direct air capture technology113 Income Taxes | 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 Liquidity and Capital Resources - 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 facility129 - 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 use130 - 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 assets131 - Capital expenditures were $1.9 billion in Q1 2025, up from $1.8 billion in Q1 2024, mainly for the oil and gas segment132 - 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 dividends133 - No debt maturities are due in 2025, with $2.9 billion in 2026, $1.5 billion in 2027, and $17.7 billion thereafter136 Environmental Liabilities and Expenditures - 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 rise138 - The company is involved in remedial activities at various sites under laws like CERCLA, which can apply retroactively and regardless of fault139 - Environmental proceedings seek funding for remediation, compensation for damages, penalties, and injunctive relief139 Lawsuits, Claims, Commitments and Contingencies - 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 estimated141 - Information on environmental remediation reserves and potential additional losses is detailed in Note 8 and Note 9141 Item 3. Quantitative and Qualitative Disclosures About Market Risk 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-K142 Item 4. Controls and Procedures 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, 2025143 - No material changes in internal control over financial reporting occurred during Q1 2025144 Part II - Other Information Item 1. Legal Proceedings 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 9145 - Occidental uses a $1 million threshold for disclosing certain environmental proceedings involving governmental authorities and potential monetary sanctions145 Item 1A. Risk Factors 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-K146 Item 5. Other Information 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 2025147 Item 6. Exhibits 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 documents150
OXY(OXY) - 2025 Q1 - Quarterly Report