Occidental Petroleum and its subsidiary 1PointFive signed an agreement with XRG, the investment company of Abu Dhabi's ADNOC, to evaluate a joint venture to develop a DAC facility in South Texas. As part of the deal, XRG will consider investing up to $500 million into a facility that could capture 500,000 tonnes of carbon dioxide per year. The oil company noted that the announcement follows several significant milestones in developing DAC technology. That includes progress on constructing its first DAC faci ...

Core Viewpoint - Carba has entered a 5-year agreement with Microsoft to deliver 44,000 carbon removal credits, utilizing its innovative pyrolysis technology and burial method to effectively remove carbon dioxide and store biochar underground [1][3]. Company Overview - Carba is a carbon removal company based in Minneapolis, Minnesota, specializing in converting waste biomass and organic materials into stable biocarbon for pollution management and permanent carbon dioxide removal [7]. - The company employs a patented autothermal process and an anoxic burial method, which allows for carbon removal credits certified for over 1,000 years [7]. Technology and Methodology - Carba's pyrolysis technology stabilizes carbon from biogenic waste, transforming it into economically valuable biochar with high carbon content [3]. - The biochar will serve as an alternate daily cover in landfills, protecting it from degradation and potentially providing environmental co-benefits, such as reducing odors and remediating pollutants [5][6]. Financial and Operational Aspects - The project received a $7 million grant from the Department of Energy for a Carbon Negative Shot Pilot, indicating strong governmental support for its initiatives [7]. - The methodology used by Carba has been certified by Isometric, ensuring that each credit represents a permanently removed ton of carbon dioxide [7]. Strategic Partnerships - The agreement with Microsoft allows for the exploration of biochar's end-use and its co-benefits, while ensuring a straightforward monitoring and verification process for the carbon credits [6].

Financial Data and Key Metrics Changes - In 2024, the company generated $11.7 billion in operating cash flow and $4.9 billion in free cash flow before working capital [6] - The company achieved a record year-end proved oil and gas reserves of 4.6 billion BOE, a 15% increase from 2023 [5] - The company paid approximately $800 million in combined dividends and approved a 22% dividend increase in early 2024, followed by an additional 9% increase early this year [6] Business Line Data and Key Metrics Changes - The company reported record US oil production of 571,000 barrels per day from its Permian, Rockies, and Gulf of America assets [5] - Combined production from ongoing operations reached 1.3 million BOE per day, with significant contributions from both US and international assets [5] Market Data and Key Metrics Changes - The company noted that ongoing negotiations and macroeconomic factors, including tariffs and geopolitical events, have impacted commodity prices and created volatility in financial markets [29][32] - The company is focused on managing its operations efficiently in any price environment, with a strategy to strengthen its balance sheet through deleveraging [30] Company Strategy and Development Direction - The company closed a strategic acquisition of Crown Rock, enhancing its access to high-quality unconventional domestic oil assets [4] - The company is advancing major projects, including the commissioning of its first commercial-scale direct air capture facility, Stratos, expected to start in 2025 [4][7] - The company aims to integrate sustainability throughout its operations and has set emission reduction targets [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic focus and operational performance, positioning it well to deliver long-term value despite near-term pressures from commodity prices [32] - The company is optimistic about the growth prospects for global oil demand beyond 2030, which is seen as positive for its operations [40] Other Important Information - The company achieved its best-ever safety performance record in 2024, reflecting a commitment to safety across all segments [6] - The board is committed to ongoing refreshment of its membership to align with the evolving needs of the company [19] Q&A Session Summary Question: Are there any plans for board refreshment? - The board has committed to ongoing refreshment, with almost half of the independent directors beginning their service within the past five years [19] Question: How does the executive compensation program align with pay for performance? - A substantial portion of named executive officer compensation is performance-based, with significant at-risk pay for executives [24] Question: What is the potential impact of tariffs and the macro environment on Oxy? - The company is focused on what it can control, with ongoing assessments of the impact of tariffs and geopolitical events on operations and financial performance [29] Question: How does Oxy approach diversity and inclusion? - Oxy maintains a culture of inclusion and belonging, which is essential for recruiting and retaining talented employees [33] Question: What are Oxy's sustainability efforts? - Oxy has implemented key emission reduction targets and has sustained zero routine flaring in its US operations [36] Question: What are the growth prospects for the different commodities produced? - Oxy is well-positioned with a diversified portfolio and expects growth in oil and gas operations, particularly in the Permian Basin [40]