OXY(US:OXY) ZACKS·2025-11-12 17:30Core 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]