Financial Data and Key Metrics Changes - In 2024, Occidental Petroleum Corporation generated $4.9 billion of free cash flow and paid approximately $800 million in common dividends, achieving its near-term debt repayment target of $4.5 billion seven months ahead of schedule [7][8] - The company reported an adjusted profit of $0.80 per diluted share and a reported loss of $0.32 per diluted share due to an increase in long-term environmental remediation liability [40][41] - The company ended 2024 with over $2.1 billion of unrestricted cash after repaying $500 million of debt [45] Business Line Data and Key Metrics Changes - The OxyChem business generated over $1.1 billion in pre-tax income in 2024, exceeding original guidance [15] - The midstream segment outperformed, with adjusted pre-tax income surpassing the midpoint of the original full-year guidance by approximately $600 million [57] - The Oil and Gas segment achieved record production of 1.33 million BOE per day in 2024, exceeding the upper end of full-year guidance [10][12] Market Data and Key Metrics Changes - The company’s US onshore production was driven by strong performance in the Delaware, TJ, Midland, and Powder River Basins, contributing to record production levels [10][11] - The company expects full-year production in 2025 to average approximately 1.42 million BOE per day, representing mid-single-digit growth from 2024 [47] Company Strategy and Development Direction - The company aims to maximize cash flow by investing primarily in short-cycle, high-return assets while advancing mid-cycle projects for future cash flow resilience [34] - The company plans to continue deleveraging and has authorized a 9% increase in its common dividend [24] - Major projects like Stratos and Battleground are expected to enhance cash flow and improve market position [25][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the $15 billion net debt target by early 2027, despite commodity price fluctuations [92] - The company highlighted a commitment to operational excellence and innovation, with a focus on safety and sustainability [65] - Management noted that 2025 will be an exciting year with improved technical capabilities and asset portfolio [66] Other Important Information - The company achieved a reserves replacement ratio of 230% for 2024, with a year-end proved reserve balance of 4.6 billion BOE, the highest in its history [12] - The company is advancing its direct air capture (DAC) technology, which is expected to deliver long-term value and contribute to US energy security [18][20] Q&A Session Summary Question: Gulf of Mexico outlook for 2025 - Management indicated a busy year ahead with maintenance and drilling activities expected to add significant production [74][75] Question: Extension of the Echo Patrol JV in the Midland Basin - Management confirmed similar terms to previous agreements and plans to drill about 23 wells [80] Question: Rockies program in 2025 and its evolution - Management acknowledged lower activity levels but highlighted embedded efficiencies and infrastructure investments in the Rockies [86][89] Question: Debt reduction trajectory towards $15 billion target - Management remains comfortable with the timeline, projecting early 2027 for achieving the target [92] Question: 2025 guidance on production and service costs - Management expects a 7% improvement in drilling and completion costs, driven by operational efficiencies [99] Question: International M&A considerations - Management expressed satisfaction with current international assets and plans for growth in existing operations [103] Question: Permian oil cut increase in 2025 - Management confirmed an increase in oil cut due to unconventional growth and contributions from Crown Rock [112][116]
OXY(OXY) - 2024 Q4 - Earnings Call Transcript