OXY(US:OXY)2025-11-10 21:23Financial Performance - For the three months ended September 30, 2025, Occidental reported a net income of $1.590 billion, a 33% increase from $1.196 billion in the previous quarter[115]. - The oil and gas segment generated a net income of $1.300 billion, up 39% from $934 million in the prior quarter[115]. - The company reported a diluted net income per share attributable to common stockholders of $0.65 for the three months ended September 30, 2025, a 150% increase from $0.26 in the previous quarter[115]. - For the nine months ended September 30, 2025, net income attributable to common stockholders was $1.715 billion, a 36% decrease from $2.674 billion in the same period last year[115]. - Occidental's chemical segment reported a net income of $197 million for the three months ended September 30, 2025, down 8% from $213 million in the previous quarter[115]. Sales and Production - Net sales for Q3 2025 were $6.6 billion, an increase from $6.4 billion in Q2 2025, driven by higher domestic oil prices and sales volumes in the oil and gas segment[119]. - Oil and gas segment earnings for Q3 2025 were $1.3 billion, up from $0.9 billion in Q2 2025, primarily due to increased crude oil sales volumes and domestic oil prices[125]. - Average daily oil sales volumes in the U.S. increased to 634 Mbbl in Q3 2025 from 604 Mbbl in Q2 2025, while international oil sales volumes rose to 114 Mbbl from 110 Mbbl[123]. - Total oil and gas sales volumes for Q3 2025 were 1,468 Mboe, an increase from 1,397 Mboe in Q2 2025, reflecting higher production from current year drilling plans[123]. Debt and Financial Strategy - Occidental's total debt as of September 30, 2025, was significantly reduced, with $1.0 billion senior notes due 2025, $1.2 billion senior notes due 2026, and $1.4 billion of a two-year term loan due 2026 repaid[111]. - Approximately 94% of Occidental's outstanding debt was fixed rate as of September 30, 2025[112]. - The company aims to reduce principal debt to below $15 billion by prioritizing excess cash flow and proceeds from divestitures[114]. - Occidental plans to use the majority of the after-tax proceeds from the $9.7 billion OxyChem transaction to continue deleveraging efforts[109]. - Occidental intends to use the majority of the after-tax proceeds from the OxyChem Transaction, anticipated to close in Q4 2025, to reduce debt by approximately $6.5 billion[138]. Cash Flow and Investments - Operating cash flow from continuing operations was $7.9 billion for the nine months ended September 30, 2025, down from $8.2 billion in the same period of 2024, primarily due to higher income tax payments and interest payments[139]. - Occidental's net cash used by investing activities was $4.0 billion for the nine months ended September 30, 2025, compared to $12.8 billion for the same period in 2024[140]. - Capital expenditures were $5.7 billion for the nine months ended September 30, 2025, an increase from $5.2 billion in the same period of 2024[141]. - As of September 30, 2025, Occidental had $2.2 billion in cash and cash equivalents and $4.15 billion of borrowing capacity under its revolving credit facility[138]. - Net cash used by financing activities was $3.9 billion for the nine months ended September 30, 2025, including long-term debt payments of $3.6 billion[142]. Market Conditions and Pricing - The average WTI price per barrel for the three months ended September 30, 2025, was $64.93, compared to $63.74 for the previous quarter and $75.09 for the same quarter last year[106]. - Average realized prices for U.S. oil in Q3 2025 were $64.55 per barrel, compared to $62.83 in Q2 2025, while international oil prices averaged $66.03 per barrel, down from $68.88[124]. Environmental and Compliance Costs - Occidental's environmental compliance costs are expected to rise in the future as operations are subject to stringent regulations[147].