OXY(OXY) - 2025 Q4 - Annual Report

Reserves and Production - The company's proved reserves as of December 31, 2025, include 1,824 million barrels of oil, 5,842 million barrels of NGL, and 3,788 billion cubic feet of natural gas in the United States, totaling 2,162 million barrels of oil equivalent (Boe) [32] - Internationally, the company holds 338 million barrels of oil, 303 million barrels of NGL, and 2,117 billion cubic feet of natural gas, contributing to a total of 1,150 million Boe [32] - The total sales volumes for the company reached 266 million barrels of oil equivalent, with 226 million from the United States and 40 million from international operations [32] Midstream Operations - The midstream and marketing segment operates with a capacity of 2.2 Bcf/d in Texas, New Mexico, and Colorado, and 5.8 Bcf/d through equity investments in WES [36] - The company's midstream operations include a pipeline capacity of 3.2 Bcf/d in Qatar, UAE, and Oman, enhancing its market access [36] Environmental Initiatives - The company is developing the STRATOS facility, which aims to capture up to 500,000 tons of CO2 per annum, with operations expected to begin in 2026 [35] - The company has five CO2 sequestration hubs under development across over 310,000 acres in Texas and Louisiana [36] - The evolving regulatory environment regarding carbon emissions and climate change could increase costs and reduce demand for the Company's products [54] - The Company may incur additional operating and maintenance costs due to air emissions regulations, which could affect its ability to conduct oil and gas development activities [54] Financial Performance - Total revenues for 2025 were $22,075 million, a decrease of 0.5% from $22,195 million in 2024 [336] - Net income attributable to common stockholders for 2025 was $1,647 million, down 30.7% from $2,377 million in 2024 [336] - Basic earnings per share from continuing operations for 2025 was $1.38, a decline of 41.5% compared to $2.36 in 2024 [336] - Comprehensive income for 2025 was $2,392 million, down from $2,982 million in 2024, a decrease of 19.7% [339] - The company plans to continue focusing on cost management and operational efficiency to improve profitability in the upcoming fiscal year [336] Debt and Cash Flow - The total long-term debt amounted to $20.427 billion, with a weighted-average interest rate of 6.05% [306] - Cash and cash equivalents decreased to $1.968 billion in 2025 from $2.125 billion in 2024 [331] - The Company has fixed rate debt with a fair value of $19.4 billion outstanding as of December 31, 2025, with a 25-basis point change in Treasury rates potentially impacting the fair value by approximately $300 million [304] - The Company also has variable rate debt with a notional value of $1.3 billion, where a 25-basis point increase in SOFR interest rates would increase gross interest expense by $3.0 million per year [304] Operational Risks - The company's financial results are significantly influenced by volatile commodity pricing, which can impact cash flows and operational decisions [38] - The Company faces risks from government actions, regulatory changes, and political, economic, and social instability that may adversely affect operations and results [44] - The Company's offshore operations are particularly vulnerable to severe weather events, which can disrupt operations and increase costs [52] - The Company’s operational hazards include risks from catastrophic events, which could lead to significant financial losses and operational disruptions [49] - The Company must manage risks related to sourcing essential inputs like water and sand, which could disrupt operations and increase costs if supply is restricted [70] Tax and Legal Matters - The company reported a potential tax liability of approximately $2.3 billion related to the Anadarko Tronox settlement, pending a U.S. Tax Court decision [41] - Changes in U.S. and international tax laws, including a 15% corporate alternative minimum tax and a 1% excise tax on net share repurchases, could impact the Company's effective tax rate and financial condition [45] Asset Management - The company recorded depreciation and depletion expense related to proved oil and gas properties of $7.1 billion for the year ended December 31, 2025 [318] - The company’s oil and gas property value increased to $126.896 billion in 2025 from $121.874 billion in 2024 [331] - The balance of capitalized exploratory well costs at the end of 2025 was $366 million, up from $262 million in 2024, with additions of $409 million in 2025 [370] - The Company performed impairment tests on proved properties whenever events indicated that the carrying value may not be recoverable, with significant declines in commodity prices being a key factor [373] Cybersecurity and Compliance - The Company is exposed to cybersecurity risks that could disrupt operations or compromise sensitive information, potentially impacting financial results [76] - The Company is subject to extensive health, safety, and environmental laws, which could lead to significant compliance costs and operational restrictions [53] Acquisitions and Divestitures - The Company completed the sale of OxyChem to Berkshire Hathaway for $9.7 billion, resulting in an estimated gain of $3.2 billion, net of taxes [437] - The acquisition of CrownRock in 2024 was for a total consideration of $12.4 billion, including $9.4 billion in cash and $1.2 billion in assumed debt [426] - The success of acquisitions and divestitures may not deliver anticipated benefits and could disrupt current operations, affecting the Company's financial condition [74]