Occidental Petroleum Corporation: Navigating Energy Evolution through Operational Excellence and Strategic Carbon Management

1. Executive Summary#

Occidental Petroleum Corporation (NYSE: OXY), a prominent entity in the global energy landscape, is engaged in hydrocarbon exploration and production across the United States and the Middle East, complemented by significant petrochemical manufacturing operations.¹ Headquartered in Houston, Texas, the company is strategically focused on enhancing financial performance through operational excellence, disciplined capital allocation, and pioneering initiatives in the lower-carbon energy domain.¹

The first quarter of 2025 marked a period of robust performance for Occidental, with the company surpassing analyst expectations for both earnings per share (EPS) and revenue.⁴ Adjusted EPS reached $0.87 against a forecast of $0.69, and revenue totaled $6.84 billion, exceeding the projected $6.71 billion.⁴ This financial outperformance was underpinned by strong operating cash flow of $3.0 billion and free cash flow of $1.2 billion (both before working capital adjustments).⁴ Production levels were stable at 1,391 thousand barrels of oil equivalent per day (Mboed), aligning with company guidance.⁵

Occidental's strategic imperatives revolve around aggressive debt reduction, advancements in Direct Air Capture (DAC) and other low-carbon ventures (LCV), and continuous operational efficiencies, particularly within its core Permian Basin assets.⁴ The company has made substantial strides in deleveraging its balance sheet, repaying $6.8 billion in debt over the ten months leading up to May 2025, thereby strengthening its financial position.⁶ This financial discipline is coupled with a commitment to shareholder returns, evidenced by consistent dividend payments and active share repurchase programs.⁴ InvestingPro assigned Occidental a "FAIR" financial health score of 2.39, with notable strength in profitability and cash flow metrics.⁴

The company's strategy of concurrently pursuing aggressive debt reduction and investing in nascent, capital-intensive low-carbon technologies, such as DAC, presents a sophisticated capital allocation challenge. This approach aims to balance immediate financial fortification with positioning for long-term, potentially transformative, though inherently uncertain, revenue streams from the carbon management economy. The strong operational performance and cost efficiencies demonstrated in Q1 2025, such as a 15% improvement in Permian drilling duration and over 10% reduction in unconventional well costs compared to the previous year ⁸, provide the critical financial leeway necessary to pursue these dual objectives. This makes the ambitious strategy more tenable, relying on internally generated cash flow to a greater extent.

However, Occidental navigates a landscape characterized by inherent risks, primarily commodity price volatility and evolving regulatory frameworks, particularly concerning climate change and carbon emissions.¹⁰ Looking ahead, the company maintains its full-year production guidance and anticipates significant incremental free cash flow from non-oil and gas sources by 2026, driven by its low-carbon initiatives.⁴

2. Occidental Petroleum: Company Profile and Strategic Imperatives#

2.1. Corporate History and Evolution#

Founded in 1920, Occidental Petroleum Corporation has evolved into a significant international energy and petrochemical enterprise.² Early in its history, under the leadership of figures like Armand Hammer, the company established a precedent for international operations.² Incorporated under Delaware General Corporation Law and headquartered in Houston, Texas ¹, Occidental has consistently ranked among major U.S. corporations, for instance, placing 183rd on the Fortune 500 in 2021 based on 2020 revenues.¹

The company's trajectory has been significantly shaped by large-scale acquisitions. The 2019 takeover of Anadarko Petroleum was a transformative event, substantially expanding Occidental's asset base but also its debt load, thereby influencing its subsequent financial strategy.² More recently, in August 2024, Occidental completed the $12 billion acquisition of CrownRock L.P., further bolstering its premier position in the Permian Basin.¹¹ These strategic moves, while enhancing scale and resource depth, have underscored the critical importance of operational efficiency and robust free cash flow generation to manage the resultant financial structure, making aggressive deleveraging a cornerstone of current corporate strategy.⁶

2.2. Business Segments#

Occidental's operations are structured across three primary segments:

• Oil and Gas: This segment forms the core of Occidental's business, involving hydrocarbon exploration, development, and production. Key operational areas include prolific U.S. onshore basins such as the Permian (Texas and New Mexico), Rockies, and the Gulf of America, alongside significant international operations, notably in Oman.¹ This segment is the principal contributor to the company's revenue and earnings.

• OxyChem: As Occidental's chemical subsidiary, OxyChem engages in the manufacturing and marketing of a diverse range of basic chemicals and vinyls. Its production facilities are located in the United States, Canada, and Chile.¹ Key products include caustic soda, chlorine, polyvinyl chloride (PVC), and other petrochemical derivatives.⁵ OxyChem holds leading market positions in several of its product lines, such as being the world's second-largest merchant seller of caustic soda.⁶ A notable ongoing project is the modernization and expansion of its Battleground plant in La Porte, Texas, aimed at improving margins and increasing product volumes.⁶

• Midstream and Marketing: This segment provides crucial support to the oil and gas operations by ensuring the efficient flow and value maximization of Occidental's hydrocarbon production. Its activities encompass gathering, processing, transportation, storage, and marketing of oil, natural gas, NGLs, and CO2.⁵ Significantly, this segment also houses Oxy Low Carbon Ventures (OLCV), LLC, which is spearheading the company's initiatives in carbon capture, utilization, and storage (CCUS) and other low-carbon technologies.¹⁵ The strategic placement of OLCV within this established segment allows Occidental to leverage existing infrastructure, operational expertise, and cash flows from its traditional businesses to de-risk and fund its transition towards a lower-carbon future. This integrated approach suggests a more gradual and synergistic energy transition strategy compared to creating a standalone "green energy" entity.

2.3. Core Strategy and Vision#

Occidental articulates its strategic direction as "A bold vision and the strategy to achieve it".³ The company is committed to delivering sustained financial performance through a multifaceted approach emphasizing operational excellence, stringent capital discipline, and industry-leading cost efficiencies.³ The overarching goal is to generate long-term, sustainable shareholder value while concurrently advancing a transition towards a lower-carbon global energy system.³

Key pillars of this strategy include:

• Aggressive Debt Reduction: A primary focus is the significant reduction of debt accumulated from past acquisitions, with clear targets and substantial progress reported.⁶

• Enhanced Shareholder Returns: The company aims to provide a sustainable and growing dividend, complemented by share repurchase programs when financial conditions permit.⁴

• Leadership in Low Carbon Advancement: Occidental is making substantial investments in its Low Carbon Ventures, with a particular emphasis on Direct Air Capture (DAC) technology and large-scale CCUS projects.⁴ This dual focus on maximizing current oil and gas production efficiency while simultaneously expanding its carbon capture footprint represents a strategic hedge. Proficiency in traditional E&P provides the necessary cash flow to fund these new ventures, while leadership in carbon management offers a pathway to continued relevance and new revenue streams (e.g., carbon credits, low-carbon fuels) in a progressively decarbonizing global economy.²

2.4. Market Position and Competitive Landscape#

Occidental is recognized as a significant and leading entity within the global energy sector, with core expertise in hydrocarbon exploration and production.² In the United States, it is one of the largest acreage holders, with approximately 9.2 million net acres across key basins.⁶

The oil and gas industry is intensely competitive. Occidental competes with numerous companies, some of which are larger, have greater financial resources, or may exhibit a higher tolerance for risk.¹⁰ The competition for acquiring and developing economically viable reserves is consistently high.¹⁰ Within the chemical sector, OxyChem maintains robust market positions, for example, as the second-largest merchant caustic soda seller globally and the fourth-largest VCM producer.⁶

3. Operational Performance and Asset Base#

3.1. Production Analysis#

Occidental Petroleum demonstrated consistent operational reliability in Q1 2025, with total production reaching 1,391 thousand barrels of oil equivalent per day (Mboed). This figure was in line with the midpoint of the company's guidance for the quarter.⁴ The Permian Basin continues to be the cornerstone of Occidental's production, contributing 754 Mboed, or approximately 54% of the total Q1 2025 output.⁵ Other domestic production included 292 Mboed from the Rockies and other U.S. operations, and 121 Mboed from the Gulf of America. International operations contributed 224 Mboed.⁵

This performance builds on a strong 2024, during which the company achieved record total company production of 1.33 Mboe/d and its highest-ever U.S. oil production.¹⁴

Looking forward, Occidental anticipates total production for Q2 2025 to be between 1,377 and 1,417 Mboed, with full-year 2025 guidance maintained at 1,390 to 1,440 Mboed.⁶ Growth in the latter half of the year is expected to be driven by the completion of turnarounds in Middle Eastern operations, various activities in the Gulf of America, and steady onshore development, which is projected to more than offset volumes from recent divestitures.⁴ Notably, Permian Basin production is forecast to increase by over 15% in 2025, significantly influenced by a full year of contributions from the recently acquired CrownRock assets.¹⁴

3.2. Cost Structure and Efficiency#

A relentless pursuit of efficiency and cost management is central to Occidental's operational strategy. In Q1 2025, domestic oil and gas operating costs were $9.05 per BOE, substantially below initial expectations.⁸ Combined domestic operating and transportation costs were $12.78 per BOE, beating guidance by 2%.¹⁸

These recent achievements follow significant cost improvements in 2024, where domestic lease operating expenses (LOE) per barrel were reduced by approximately 9%, and well costs were lowered by roughly 12% across all unconventional basins.¹⁴ The average lease operating expense per Boe decreased from $10.48 in 2023 to $9.75 in 2024.¹⁰

The Permian Basin has been a particular focus for efficiency gains. Compared to 2024, Q1 2025 saw a 15% improvement in drilling duration per well and a reduction in Permian unconventional well costs by more than 10%.8 These advancements, attributed to enhanced well designs and strong execution, surpassed the initial 5-7% cost reduction target and enabled the company to reduce its drilling rig count in the Delaware Basin by two units without impacting its production outlook for 2025.8 For 2025, Occidental is targeting an additional $150 million in domestic operating cost reductions.7 The consistent outperformance in cost reduction and drilling efficiency is a critical enabler of Occidental's broader financial strategy, directly contributing to higher margins and increased free cash flow. This allows the company to fund its debt reduction and low-carbon venture investments more robustly, reducing reliance on favorable commodity price swings.

### 3.3. Reserve Base

Occidental maintains a substantial reserve base. As of the end of 2023, the company reported net proved reserves of nearly 4 billion BOE.18 By the end of 2024, worldwide proved reserves had increased to 4.6 billion BOE.13 This growth was driven by the purchase of 623 million BOE, primarily from the CrownRock acquisition, along with extensions and discoveries adding 326 million BOE (mostly in the Permian Basin), and positive revisions of 112 million BOE from infill development projects, predominantly in the DJ and Permian Basins.20

The company achieved an all-in reserves replacement rate of 230% in 2024, with an organic reserves replacement rate of 112%.20 The three-year average all-in reserves replacement rate stood at 181%.20 Successful reserve replacement, particularly the strong organic additions alongside strategic acquisitions, signals the underlying health and sustainability of Occidental's core exploration and production business. This ability to consistently replenish its reserves is fundamental to maintaining long-term production levels, which in turn underpin the company's revenue generation, cash flow, and capacity to achieve its financial and strategic objectives.

### 3.4. Key Projects and Developments

Occidental is advancing several key projects across its portfolio:

* **Permian Basin:** Activity remains centered on enhancing drilling efficiencies, optimizing pad utilization, and implementing enhanced well designs.8 A key focus is the integration of the newly acquired CrownRock assets to unlock operational synergies and maximize cash flow potential from the combined Midland Basin position.9

* **Oman:** International operations have been bolstered by a significant gas and condensate discovery in North Oman, with estimated resources in place exceeding 250 million BOE. This discovery is advantageously located near existing infrastructure, which is expected to facilitate development.6 Occidental is also in advanced negotiations with the Omani government for a contract extension for Block 53 (Mukhaizna) until 2050, which could significantly increase the value and resource potential of its Omani assets by over 800 million gross barrels.6 This Omani development provides a valuable international growth avenue, offering diversification from purely domestic U.S. assets and potentially different fiscal terms or market access.

* **Gulf of America (GoM):** While specific recent Occidental-operated GoM project start-ups were not detailed beyond planned activities contributing to production growth 4, the region remains a component of its portfolio. Production in Q3 2024 was slightly below guidance due to weather impacts.21

* **Al Hosn (UAE):** In partnership with ADNOC, Occidental is expanding the Al Hosn Gas facility to improve efficiency and capacity, building on record production levels achieved in 2023.22

## 4. In-Depth Financial Analysis

### 4.1. Historical Financial Performance (2013-2024)

Occidental Petroleum's financial performance over the past decade reflects the inherent volatility of the energy sector, characterized by significant swings in revenue, profitability, and cash flow, influenced by commodity price cycles, major acquisitions, and strategic shifts.

**Table: Occidental Petroleum Historical Financial Summary (Annual, 2013-2024)**

*(Note: All values in millions of USD, except per share data. Some figures are from different sources and may have slight variations based on reporting methodologies, e.g. TTM vs. Fiscal Year End.)*

| Year | Revenue | Gross Profit | Operating Income | Net Income | Diluted EPS ($) | Operating Cash Flow | Capital Expenditures | Free Cash Flow | Dividends per Share ($) | Total Debt (Long-Term) | Year-End Market Cap | Shares Outstanding (Year-End, Millions) |

|---|---|---|---|---|---|---|---|---|---|---|---|---|

| 2013 | 20,170 24 | 13,673 25 | 7,751 26 | 5,890 27 | 7.32 28 | N/A | N/A | N/A | 2.56 29 | 6,939 30 | N/A | 805 31 |

| 2014 | 19,312 24 | 12,509 25 | 1,224 26 | 616 27 | 0.79 28 | N/A | N/A | N/A | 2.88 29 | 6,838 30 | N/A | 781 31 |

| 2015 | 12,480 24 | 6,676 25 | -9,684 26 | -7,829 27 | -10.23 28 | N/A | N/A | N/A | 3.00 29 | 6,855 30 | N/A | 766 31 |

| 2016 | 10,090 24 | 4,901 25 | -1,845 26 | -574 27 | -0.75 28 | N/A | N/A | N/A | 3.02 32 | 9,819 30 | N/A | 764 31 |

| 2017 | 12,508 24 | 6,914 25 | 1,328 26 | 1,305 27 | 1.70 28 | N/A | N/A | N/A | 3.06 32 | 9,328 30 | N/A | 766 31 |

| 2018 | 17,824 24 | 11,256 25 | 5,608 26 | 4,131 27 | 5.39 28 | N/A | N/A | N/A | 3.10 32 | 10,201 30 | N/A | 763 31 |

| 2019 | 20,911 24 | 12,524 25 | 121 26 | -985 27 | -1.22 28 | N/A | N/A | N/A | 3.14 32 | 38,537 30 | N/A | 810 31 |

| 2020 | 17,809 24 | 9,341 25 | -15,282 26 | -15,675 27 | -17.06 28 | 3,960 33 | 2,535 34 | -48.25% chg. 35 | 0.82 32 | 35,745 30 | N/A | 919 31 |

| 2021 | 25,956 24 | 16,297 25 | 3,583 26 | 1,522 27 | 1.58 28 | 10,430 33 | 2,870 34 | 148.26% chg. 35 | 0.04 32 | 29,431 30 | N/A | 959 31 |

| 2022 | 36,634 24 | 24,571 25 | 13,800 26 | 12,427 27 | 12.40 28 | 16,810 33 | 4,497 34 | 12,897 35 | 0.52 32 | 19,670 30 | N/A | 1002 31 |

| 2023 | 28,257 24 | 16,974 25 | 6,429 26 | 3,752 27 | 3.90 28 | 12,310 33 | 6,270 34 | 6,486 35 | 0.72 32 | 18,536 30 | N/A | 961 31 |

| 2024 | 26,725 24 | 16,921 25 | 4,070 26 | 2,364 27 | 2.44 28 | 11,440 33 | 7,018 34 | 6,094 35 | 0.88 32 | 24,978 30 | N/A | 967 31 |

N/A: Data not readily available in the provided snippets for the full historical range or requires further calculation not explicitly stated. Free Cash Flow for 2020 & 2021 is presented as % change due to source format.

Revenue peaked in 2022 at $36.634 billion, declining to $26.725 billion in 2024.²⁴ Net income has shown significant volatility, with a substantial loss of $15.675 billion in 2020 contrasting sharply with a profit of $12.427 billion in 2022.²⁷ Diluted EPS mirrors this pattern.²⁸ Free cash flow was robust in recent years, reaching $12.897 billion in 2022 before moderating to $6.094 billion in 2024.³⁵

4.2. Recent Financial Results (Q1 2025)#

Occidental reported a strong start to 2025, exceeding analyst expectations.

• Revenue: $6.84 billion, a 13.86% year-over-year increase and surpassing the forecast of $6.71 billion.⁴

• Net Income: Attributable to common stockholders was $766 million.⁵ Google Finance reported $936 million.³⁷

• EPS: Adjusted EPS stood at $0.87, significantly beating the consensus estimate of $0.69. Reported EPS was $0.77.⁴

• Cash Flow: Operating cash flow before working capital reached $3.0 billion ⁴, with cash flow from operations (after working capital) at $2.1 billion.⁷ Free cash flow before working capital was $1.2 billion.⁴

• Realized Prices: The quarter benefited from higher commodity prices compared to Q4 2024: average worldwide realized crude oil prices increased by 2% to $71.07 per barrel, average worldwide realized NGL prices rose 19% to $25.94 per barrel, and average domestic realized natural gas prices surged 92% to $2.42 per Mcf.⁵ The substantial increase in realized natural gas prices likely provided a significant, albeit potentially variable, uplift to the Oil & Gas segment's profitability, helping to offset the impact of lower oil sales volumes during the quarter. This underscores Occidental's sensitivity to regional natural gas price dynamics, which can be more volatile than global oil markets.

4.3. Segment Financial Breakdown (Q1 2025 Pre-Tax Income)#

• Oil and Gas: Delivered pre-tax income of $1.7 billion, up from $1.2 billion in Q4 2024. This increase was primarily due to higher domestic realized commodity prices, which more than compensated for lower sales volumes.⁵

• OxyChem: Reported pre-tax income of $185 million. Adjusted pre-tax income was $215 million, exceeding guidance.⁵ Compared to Q4 2024, income decreased due to lower realized prices for caustic soda and PVC, alongside higher ethylene and natural gas costs.⁵ This performance highlights OxyChem's role as a diversifier but also its exposure to distinct chemical market cycles and input cost inflation, separate from oil and gas dynamics.

• Midstream and Marketing: Recorded a pre-tax loss of $77 million, which included $84 million in net derivative losses.⁵ However, excluding items affecting comparability, the segment's results exceeded the midpoint of guidance by $127 million. The improved performance compared to Q4 2024 was mainly attributed to the timing of crude oil sales and higher sulfur prices at Al Hosn.⁵ WES equity method investment income contributed $147 million.⁵ The segment's ability to significantly outperform guidance through "gas marketing optimization" during periods of regional pricing disparities and favorable timing of sales suggests a sophisticated trading and logistics capability that can capture value beyond basic transportation and processing, acting as an opportunistic profit center.⁵

4.4. Profitability Analysis (TTM Q1 2025 unless stated)#

• Gross Profit Margin: Reported by InvestingPro at an impressive 63.3% for Q1 2025.⁴ Morningstar reports a TTM Q1 2025 figure of 36.53%.³³ This discrepancy warrants attention, potentially due to different calculation methodologies (e.g., TTM vs. quarterly, adjustments). For the full year 2024, the gross profit margin was 63.32% ($16.921B gross profit / $26.725B revenue).²⁴

• Operating Margin: TTM Q1 2025 was 22.14%.³³ For FY2024, it was 20.93% ($5.59B operating income / $26.73B revenue).³³

• Net Profit Margin: TTM Q1 2025 was 11.38%.³³ For Q1 2025 standalone, it was 13.76%.³⁷ For FY2024, it was 10.84% ($2.36B net income / $26.73B revenue).³³

• Return on Equity (ROE): TTM Q1 2025 reported at 9.16%.⁴⁰ Morningstar indicates a normalized ROE of 14.49%.¹⁸ For FY2024, ROE was 7.13%.²⁷

• Return on Invested Capital (ROIC): Morningstar reports a normalized ROIC of 7.49% for TTM Q1 2025.¹⁸

5. Capital Management and Shareholder Returns#

Occidental Petroleum has demonstrated a strong focus on disciplined capital management, prioritizing debt reduction while also returning value to shareholders through dividends and share repurchases.

5.1. Debt Profile and Deleveraging#

Following major acquisitions, particularly Anadarko, Occidental has embarked on an aggressive deleveraging program.

• Current Debt Levels: As of March 31, 2025, long-term debt stood at $24.037 billion ³⁰, with total debt reported at $25.99 billion.³³ Total liabilities were $49.86 billion.³³

• Recent Repayment Progress: The company has made significant strides in reducing its debt burden. In the 10 months leading up to May 2025, Occidental repaid a total of $6.8 billion in debt, including $2.3 billion repaid year-to-date as of early May 2025.⁶ This rapid deleveraging has reduced annual interest expense by approximately $370 million.⁶

• Maturity Profile: All debt maturities for 2025 have been retired. As of May 2025, only $284 million in debt was due over the subsequent 14 months, providing considerable financial flexibility.⁶

• Deleveraging Targets: Occidental achieved its near-term debt repayment target of $4.5 billion seven months ahead of schedule.¹⁴ The company is now working towards its next significant target of reducing its principal debt balance to below $15 billion.¹⁶

• Funding Sources: Debt reduction has been funded through a combination of strong organic free cash flow, proceeds from non-core asset sales (which amounted to $1.3 billion in Q1 2025), and proceeds from common warrant exercises.⁷

This aggressive debt repayment is rapidly de-risking Occidental's balance sheet. The company regained its investment-grade credit rating in 2024 ⁴¹, and continued progress could lead to further credit rating upgrades. Such upgrades would likely lower the cost of capital for future debt issuances or refinancing, thereby enhancing free cash flow and increasing capacity for shareholder returns and strategic investments.

Table: Occidental Petroleum Debt Reduction Summary (Q3 2024 - Q1 2025)

Note: Cumulative figures are based on the $6.8B repayment over 10 months ending Q1 2025. Quarterly breakdown of the $6.8B is partially inferred.

5.2. Liquidity and Capital Resources#

As of March 31, 2025, Occidental held an unrestricted cash balance of $2.6 billion.⁴ The company's financial health is rated as "FAIR" (score of 2.39) by InvestingPro, with particularly strong scores for profitability (3.04) and cash flow (2.58).⁴

5.3. Shareholder Return Policies#

Share Repurchase Programs: Occidental has actively utilized share repurchase programs to return capital to shareholders, particularly as its deleveraging efforts have progressed.

• 2024 Program: The company completed $1.8 billion of common share repurchases during 2024.⁴¹

• 2023 Program: A $3.0 billion share repurchase program was announced in February 2023. During 2023, Occidental repurchased 29.4 million shares for approximately $1.8 billion, at an average price of $61.15 per share. As of December 31, 2023, $1.2 billion remained under this authorization.⁴⁴ By the end of Q3 2023, approximately 60% of this program had been utilized with $600 million repurchased in that quarter alone.⁴⁵

• 2022 Program: A $3.0 billion share repurchase program was completed in 2022, with a total of 47.7 million shares repurchased throughout the year. This included $562 million of repurchases in Q4 2022.⁴²

• Earlier Years: In 2021, 296,760 shares were purchased for approximately $8.2 million, and in 2020, 635,583 shares were bought back for around $11.5 million, with these purchases primarily from the trustee of Occidental's defined contribution savings plan.⁴⁷ Data for 2014-2019 was less consistently available in the provided materials, though $1.5 billion was returned via repurchases in Q3 2018.⁴⁹

Dividend Policy and History: Occidental has a long history of dividend payments, having maintained them for 52 consecutive years.⁴

• Current Dividend: The current annualized dividend stands at $0.96 per share, translating to a quarterly payment of $0.24 per share.¹⁷ * **Recent Increases:** The dividend has seen several recent increases: by 9% in early 2025 ¹⁶, approximately 22% in early 2024 ¹¹, and 38% in early 2023.⁴² * **Yield and Payout:** As of May 2025, the dividend yield was approximately 2.18% - 2.33%.¹⁷ The payout ratio is around 47.46%.¹⁷ The shift in capital allocation to more prominently feature shareholder returns, following the achievement of initial deleveraging milestones, signals management's growing confidence in sustained free cash flow generation and a commitment to rebalancing enterprise value in favor of common shareholders.⁶ **Table: Occidental Petroleum Shareholder Return History (Annual, 2019-2024 & Q1 2025)** | Year / Period | Dividends per Share ($) | Total Dividends Paid (Approx. Million $) | Shares Repurchased (Number) | Value of Shares Repurchased (Million $) | Notes | |---|---|---|---|---|---| | 2019 | 3.14 ³² | ~2,543 (based on 810M shares) | N/A (10-K inaccessible) | N/A | | | 2020 | 0.82 ³² | ~754 (based on 919M shares) | 635,583 ⁴⁸ | 11.5 ⁴⁸ | From savings plan trustee | | 2021 | 0.04 ³² | ~38 (based on 959M shares) | 296,760 ⁴⁷ | 8.2 ⁴⁷ | From savings plan trustee; $3B program approved Feb 2022 ²³ | | 2022 | 0.52 ³² | ~521 (based on 1002M shares) | 47,700,000 ⁴² | 3,000 ⁴² | $3B program completed ⁴² | | 2023 | 0.72 ³² | ~692 (based on 961M shares) | 29,399,715 ⁴⁴ | 1,798 ⁴⁴ | New $3B program announced Feb 2023; $1.2B remaining at YE ⁴⁴ | | 2024 | 0.88 ³² | ~851 (based on 967M shares) | N/A (Completed $1.8B of repurchases) ⁴¹ | 1,800 ⁴¹ | | | Q1 2025 | 0.24 (Quarterly rate) ⁵¹ | N/A | N/A | N/A (Focus on debt repayment) | |

Total Dividends Paid are estimated based on DPS and average shares outstanding for the year. Actuals may vary.

5.4. Capital Allocation Priorities and Capital Expenditure (Capex)#

Occidental's capital allocation in 2025 prioritizes maintaining its production base, supporting a sustainable and growing dividend, and directing excess free cash flow towards further debt reduction.⁶

• Q1 2025 Capex: Net capital expenditures were $1.8 billion ⁹, with gross capital spending at $1.9 billion.⁵

• 2025 Capital Guidance: The company reduced its 2025 capital guidance by $200 million, citing efficiency gains. This includes a $100 million reduction in Permian capital (due to drilling efficiency and facilities optimization) and a $100 million reduction in Gulf of America capital (through waterflood schedule optimization and deferral of discretionary activities).⁶ The current 2025 capital expenditure plan is between $7.2 billion and $7.4 billion.⁵³

• 2024 Capex: Approximately $7.0 billion..¹³³⁴

The ability to reduce capital guidance while maintaining production targets is a direct result of significant operational efficiencies. This capital discipline is crucial for maximizing free cash flow, particularly in a volatile commodity price environment, and demonstrates an organizational capacity for continuous improvement.

6. Strategic Initiatives and Future Growth Drivers#

Occidental Petroleum is actively pursuing several strategic initiatives aimed at securing future growth, enhancing shareholder value, and navigating the evolving energy landscape. These initiatives span advancements in low-carbon technologies, strategic M&A, international expansion, and technological innovation within its core operations.

6.1. Low Carbon Ventures (OLCV)#

A cornerstone of Occidental's long-term strategy is its commitment to becoming a leader in carbon management solutions through its Oxy Low Carbon Ventures (OLCV) subsidiary.

• Core Strategy: OLCV aims to develop large-scale decarbonization projects and carbon-neutral fuel solutions, leveraging Occidental's more than 50 years of experience in CO2 management and enhanced oil recovery (EOR).⁹ The objective is to create economically viable businesses that also contribute to reducing global emissions.¹⁵

• Direct Air Capture (DAC): Occidental is at the forefront of commercializing DAC technology.

  • STRATOS Project: Its first commercial-scale DAC facility, located in Ector County, Texas, is progressing as planned and is on track for startup in mid-2025.¹¹

  • Carbon Engineering Acquisition: In November 2023, Occidental acquired the remaining equity in Carbon Engineering Ltd., a key DAC technology partner. This move is intended to accelerate DAC technological advancements, reduce costs, and facilitate global deployment.¹¹ The Board of Directors visited Carbon Engineering's Innovation Centre in July 2024 to review R&D progress.¹¹

  • ADNOC Partnership: Occidental has entered into a significant agreement with Abu Dhabi National Oil Company (ADNOC) to jointly evaluate and potentially develop a large-scale DAC facility in Texas. This project could involve an investment of up to $500 million and aims to capture 500,000 tonnes of CO2 annually, highlighting Occidental's ambition in the carbon management space.⁵⁴

• Carbon Capture, Utilization, and Storage (CCUS): The company plans to utilize captured CO2 for both EOR, enhancing production from its existing oilfields, and for dedicated geological sequestration.¹⁴ A critical component of this strategy is the development of a robust market for carbon removal credits and associated carbon products.¹⁰

• Financial Projections for Non-Oil and Gas Businesses: Occidental anticipates a significant inflection in cash flow from its non-oil and gas businesses, primarily OLCV and OxyChem. The company projects approximately $1.0 billion in incremental pre-tax free cash flow from these sources by 2026, with this figure expected to grow to $1.5 billion in 2027.⁴

Occidental's LCV strategy, particularly its substantial investment in DAC, represents a long-term, capital-intensive venture. While it offers a potentially transformative pivot for the company if successful-positioning Occidental as a leader in the future carbon management economy-it also introduces considerable technological, market, and execution risks distinct from traditional E&P challenges.¹⁰

6.2. Mergers and Acquisitions (M&A) and Divestitures#

Strategic transactions continue to shape Occidental's portfolio and financial capacity.

• CrownRock Acquisition: Completed in August 2024 for $12 billion, this acquisition significantly enhances Occidental's premier Permian Basin portfolio by adding high-margin, low-breakeven production and undeveloped inventory.¹¹ Management has reported that the acquired assets are exceeding initial financial and production expectations.¹⁴ The focus is now on unlocking value and achieving "reverse synergies," where Occidental's operational expertise is applied to optimize the acquired assets.⁹ This acquisition, while increasing near-term debt, strategically deepens Occidental's exposure to the high-quality, low-cost Permian Basin, likely intended to bolster free cash flow generation to accelerate overall deleveraging and fund the LCV transition.

• Anadarko Petroleum Acquisition (2019): This earlier large-scale acquisition fundamentally reshaped Occidental's financial structure and strategic priorities, leading to the current emphasis on debt reduction.²

• Asset Sales: Occidental continues to optimize its portfolio through non-core asset divestitures. In Q1 2025, $1.3 billion in asset sales were closed, with proceeds earmarked for debt repayment.⁶ An additional $1.2 billion in divestitures were announced for Q1 2025.²⁰

6.3. International Operations and Expansion#

Occidental maintains a significant international presence, which provides geographical diversification and access to diverse resource plays.

• Oman: This remains a key international hub. Recent exploration success includes a significant gas and condensate discovery in North Oman, with estimated resources in place exceeding 250 million BOE, located near existing infrastructure.⁶ Furthermore, Occidental is in advanced negotiations for a contract extension of Block 53 (Mukhaizna) until 2050, which has the potential to add over 800 million gross barrels to its resource base.⁶

• Middle East Operations: The completion of turnarounds in Middle Eastern assets is anticipated to be a driver of production growth in the second half of 2025.⁴

• Al Hosn Gas Facility (UAE): In partnership with ADNOC, Occidental is expanding this facility to improve efficiency and capacity, following record production in 2023.²²

6.4. Technological Advancements#

Innovation and technology adoption are integral to Occidental's strategy for enhancing efficiency and unlocking new opportunities.

• AI Center of Excellence: The company has established an AI Center of Excellence to oversee and drive intercompany AI initiatives aimed at creating business value across its operations.⁹

• Unconventional EOR Technology: Occidental is actively advancing CO2 and gas EOR pilot projects and developing proprietary reservoir modeling techniques to maximize recovery from its unconventional assets.⁹

• Subsurface Characterization: The application of the latest technologies in reservoir simulation and seismic interpretation is being used to improve performance and recovery rates.⁹

The focus on applying advanced technologies like AI and sophisticated EOR techniques across its expanded portfolio, including the CrownRock assets, indicates a strategic drive to extract maximum value. This technological leverage is a key differentiator and a pathway to potentially outperforming baseline asset expectations, crucial for meeting ambitious financial and strategic targets.

7. Risk Assessment and Mitigation#

Occidental Petroleum operates in a complex and dynamic environment, facing a range of risks that could impact its financial condition, operational performance, and strategic objectives. These risks are detailed in its regulatory filings, such as the 2024 Form 10-K.¹⁰

7.1. Economic Risks#

• Commodity Price Volatility: Occidental's financial results are highly susceptible to fluctuations in the prices of oil, NGLs, natural gas, and chemical products. These prices are influenced by a myriad of factors including global supply and demand dynamics, geopolitical events (such as conflicts in Russia-Ukraine and the Middle East), OPEC+ production decisions, the pace of alternative energy adoption, technological advancements in energy consumption, and global inventory levels.¹⁰ Prolonged or substantial declines in these prices can adversely affect Occidental's revenues, cash flows, liquidity, ability to service debt, capacity to fund capital expenditures and acquisitions, and the economic viability of its reserves.¹⁰ While the company may engage in hedging activities, it generally remains exposed to market prices, and such hedges could also limit potential upside from price increases.¹⁰ The company's significant debt load, even with a high proportion of fixed-rate debt (89% as of December 2024 ¹⁰), means that its ability to generate sufficient cash flow to service and reduce this debt remains highly sensitive to commodity price levels.

• Inflation and Interest Rates: Rising inflation and interest rates can negatively impact Occidental's cost of capital and its ability to access capital markets on favorable terms.¹⁰ Although a significant portion of its debt is fixed-rate, the overall indebtedness increases vulnerability during economic downturns.¹⁰

7.2. Political and Regulatory Risks#

• International Operations Exposure: With 16% of its consolidated revenue in 2024 derived from non-U.S. operations, Occidental is exposed to various political, regulatory, economic, and social developments in foreign jurisdictions. These can include unforeseen policy changes, confiscatory taxation, trade restrictions, social unrest, and currency fluctuations.¹⁰

• Government Actions and Political Instability: The company's businesses are subject to evolving laws and regulations related to drilling, manufacturing, pipelines, labor, taxes, environmental protection, and climate change.¹⁰ For instance, the U.S. Inflation Reduction Act (IRA) introduced new corporate taxes and a methane emissions charge.¹⁰ Potential shifts in U.S. climate policy, such as changes to participation in the Paris Agreement or federal support for low-carbon ventures, could materially impact OLCV operations and strategy.¹⁰ Securing permits, such as Class VI CO2 injection well permits, is also crucial and subject to regulatory timelines and decisions.¹⁰

7.3. Industry-Specific Risks#

• Operational Hazards and Development Delays: Exploration and production activities are inherently risky and subject to equipment failures, construction delays, cost overruns, disappointing drilling results, and third-party actions.¹⁰ Furthermore, producing reservoirs naturally decline, necessitating continuous successful exploration, development, or acquisitions to replace reserves and maintain production levels.¹⁰

• Climate Change-Related Risks and Emissions Reduction Efforts: Increasing global attention to climate change has led to a proliferation of international agreements and national/local legislation aimed at reducing greenhouse gas (GHG) emissions. New EPA regulations on methane and VOC emissions, as well as BLM rules on venting and flaring, are expected to increase operating costs and may restrict development in certain areas.¹⁰ These regulations could also accelerate the shift to alternative energy sources, potentially reducing demand for Occidental's products and the value of its reserves.¹⁰ Occidental's ambitious net-zero GHG goals are heavily reliant on the successful development, scaling, and commercialization of technologies like DAC and CCUS. These technologies are still in relatively early stages of large-scale deployment and face financial, operational, regulatory, and market acceptance risks.¹⁰ The success of these low-carbon ventures, while a potential long-term mitigator for climate-related transition risks, introduces a new set of substantial execution risks related to technological viability at scale, cost-effectiveness, and the creation of a viable market for carbon credits and low-carbon products.¹⁰ This means Occidental is evolving its risk profile, not merely diminishing it.

• Competition: The oil and gas industry is highly competitive, with Occidental contending against companies that may be larger, better-funded, or possess greater access to capital or specialized technologies.¹⁰

• Resource Sourcing and Disposal: Access to essential resources like water and sand for hydraulic fracturing, and the ability to dispose of produced water, can be affected by price, availability, and increasingly stringent environmental regulations, including those related to induced seismicity.¹⁰

• CO2 Supply for EOR: Occidental's significant EOR operations depend on reliable and economic access to CO2, the supply of which can be subject to disruptions or market limitations.¹⁰

• Offshore Operations: Activities in the Gulf of America carry unique risks, including hurricanes, complex geology, higher costs, and more stringent HSE regulations.¹⁰

• Catastrophic Events and Cybersecurity: The company is exposed to risks from severe weather, well blowouts, industrial accidents, and physical or cyber-attacks, which could lead to substantial losses, operational disruptions, and reputational damage.¹⁰ The increasing sophistication of cyber threats, including those leveraging AI, poses an ongoing challenge.¹⁰

7.4. Risk Mitigation Strategies#

Occidental employs several strategies to mitigate these risks:

• Maintaining a diversified portfolio across different geographies and business segments (Oil & Gas, Chemicals, Midstream/LCV).⁶

• Focusing on operational excellence and cost control to enhance resilience against commodity price downturns.⁵

• Proactively managing its debt profile, including maintaining a high proportion of fixed-rate debt and aggressively deleveraging.⁶

• Investing in LCV as a long-term strategy to address climate-related transition risks and develop new revenue streams.²

• Building and maintaining strong, long-term relationships in its international areas of operation, such as in Oman ⁶, which can be a competitive advantage in navigating complex geopolitical landscapes.

• Investing in technology and cybersecurity measures to protect its assets and information.⁹

8. Market Perspective and Valuation#

8.1. Stock Performance#

Occidental Petroleum's common stock is traded on the New York Stock Exchange under the ticker symbol OXY.¹ As of May 23, 2025, the stock price was $41.29.³ Following the announcement of its strong Q1 2025 earnings, the stock experienced a notable increase of 5.95%, closing at $41.33 on the day of the announcement.⁴ However, around that period, it was also noted that the stock was trading closer to its 52-week low than its high.⁶ The 52-week range for OXY has been between $34.78 and $64.76.³ The stock's beta is reported in the range of 0.81 to 0.88, suggesting slightly lower volatility compared to the broader market.⁵⁹

8.2. Valuation Metrics#

As of May 2025, Occidental Petroleum's valuation metrics were as follows:

• Market Capitalization: Approximately $40.63 billion.¹⁸

• Price to Earnings (P/E) Ratio (TTM): Approximately 16.7 to 16.78.⁵⁹ The normalized P/E ratio was reported at 11.16.¹⁸

• Forward P/E Ratio: Estimated between 13.08 and 16.60.⁵⁹

• Price to Sales (P/S) Ratio (TTM): Approximately 1.46.¹⁸

• Price to Book (P/B) Ratio (TTM): Approximately 1.47 to 1.57.¹⁸ The book value per share was $28.05.⁵⁹

• Enterprise Value to EBITDA (EV/EBITDA) Ratio (TTM): Approximately 4.99x.⁵³

• Dividend Yield: Approximately 2.18% to 2.33%.³²

Table: Occidental Petroleum Valuation Metrics vs. Peers (Approximate, May 2025)

N/A: Data for peers not consistently available across the same timeframe/source in provided snippets for direct TTM comparison. Peer data from ⁶⁴ are for general scale.

8.3. Analyst Ratings and Price Targets#

The consensus analyst rating for Occidental Petroleum's stock is generally "Hold".⁵⁸ This is based on the ratings of approximately 19 to 21 Wall Street analysts. Average price targets for OXY range from approximately $47.95 to $53.14.⁵⁸ Following the Q1 2025 earnings release, some analysts revised their earnings estimates upward ⁴, and some price targets were adjusted, reflecting the company's performance.⁵⁴ The current "Hold" consensus, despite strong operational performance and debt reduction, likely reflects the ongoing tension between Occidental's improved financial health and the inherent risks associated with commodity price volatility and the long-term, capital-intensive nature of its LCV ambitions. The market may be adopting a "wait-and-see" approach regarding the ultimate economic viability and scalability of the LCV segment.

8.4. Major Shareholders#

Occidental Petroleum has a significant institutional ownership base.

• Berkshire Hathaway Inc.: Warren Buffett's company is the largest shareholder, holding a stake reported between 26.92% and 28.2% of Occidental's outstanding shares.¹⁶ This substantial investment, valued at approximately $11 billion to $13.08 billion, is often seen as an endorsement of Occidental's management and long-term strategy, particularly its Permian assets and free cash flow generation capabilities.¹⁶

• Other Institutional Ownership: Total institutional ownership is high, reported in the range of 49% to 76.14%.⁵⁹ Other top institutional holders include Dodge & Cox, The Vanguard Group, Inc., and BlackRock, Inc..⁶⁹

• Insider Ownership: Reported figures for insider ownership vary, from approximately 0.38% to 9.09% (with Carl Icahn having been a significant insider holder previously).⁵⁹

The substantial institutional ownership, particularly the large position held by Berkshire Hathaway, provides a degree of stability and validation to Occidental's strategy. However, it also implies that shifts in sentiment or investment decisions from these large holders could disproportionately impact the stock price, independent of underlying fundamentals. The stock trading closer to its 52-week low despite positive Q1 results ⁶ could indicate broader energy sector bearishness or specific investor concerns about the company's long-term capital allocation between traditional E&P, debt repayment, and the capital-intensive LCV projects, especially if returns from LCV are perceived as too distant or uncertain.

9. Corporate Governance and Shareholder Engagement#

Occidental Petroleum emphasizes a commitment to effective and ethical corporate governance, which it believes ultimately enhances stockholder value.⁷⁴ The company's governance framework includes comprehensive policies, a Code of Business Conduct, and regular reviews of its practices by the Board of Directors.⁷⁴

9.1. Executive Leadership#

• Vicki Hollub serves as President and Chief Executive Officer.⁴ She has been with Occidental since 1981 and became CEO in May 2016, making her the first female CEO of a major U.S. oil and gas company.¹ Her tenure has been marked by significant strategic moves, including leading the company's expansion in the Permian Basin, the acquisition of Anadarko Petroleum, and the current strategic focus on debt reduction and low-carbon ventures.¹⁴

• Sunil Mathew is the Senior Vice President and Chief Financial Officer, playing a key role in the company's financial strategy and deleveraging efforts.⁴

• Other key members of the senior leadership team include Robert Peterson (Executive Vice President, Essential Chemistry), Sylvia Kerrigan (Senior Vice President and Chief Legal Officer), Kenneth Dillon (Senior Vice President and President, International Oil and Gas Operations), Richard Jackson (President, U.S. Onshore Resources and Carbon Management, Operations), Wade Alleman (President, OxyChem), and Jordan Tanner (Vice President, Investor Relations).⁴

9.2. Board of Directors#

The Board of Directors plays a crucial oversight role in Occidental's governance.

• Independent Chairman: Jack B. Moore has served as Independent Chairman since 2022 and has been a Director since 2016.⁷⁰

• Board Composition and Committees: The Board comprises individuals with diverse expertise relevant to Occidental's business. It operates with several committees, including Audit, Compensation, and Nominating and Governance committees, to ensure focused oversight.⁷⁴ Detailed information on director biographies, tenure, expertise, and committee assignments is typically found in the company's annual Proxy Statement (DEF 14A).¹¹

9.3. Annual Shareholder Meeting Results (2024)#

Occidental Petroleum held its 2024 Annual Meeting of Shareholders on May 2, 2024. The final voting results, filed with the SEC on May 6, 2024, indicated strong shareholder support for the Board's recommendations ⁷⁹:

• Election of Directors: All ten nominees proposed by the Board were elected, with most receiving over 97% of votes cast "For".⁷⁹

• Advisory Vote on Executive Compensation (Say-on-Pay): The proposal to approve named executive officer compensation was approved, receiving 96.72% of votes "For".⁷⁹

• Ratification of Independent Auditor: The selection of KPMG LLP as the company's independent auditor for the year ending December 31, 2024, was ratified with 97.79% of votes "For".⁷⁹

• Shareholder Proposal on Lobbying: A shareholder proposal requesting an annual report on lobbying activities, submitted by John Chevedden, was not approved, receiving 14.47% of votes "For" and 85.07% "Against," in line with the Board's recommendation.⁷⁹

The overwhelming shareholder approval for director nominees and executive compensation at the 2024 Annual Meeting suggests broad investor confidence in the current Board and management's strategic direction, particularly the ongoing efforts in deleveraging and advancing low-carbon ventures.

9.4. Shareholder Engagement and Executive Compensation#

Occidental states that it proactively engages with its shareholders, including those collectively representing a majority of its outstanding shares. These engagements often involve the participation of independent directors.²² Feedback from these interactions is reportedly discussed at each regular Board meeting and is considered in the Board's decision-making processes.²² This commitment to transparency and incorporating investor perspectives is particularly important given the transformative nature of its LCV strategy.

The company's executive compensation program, detailed in the Compensation Discussion and Analysis (CD&A) section of its Proxy Statement, emphasizes performance-based incentives and is subject to shareholder approval via the say-on-pay vote.²² Occidental also maintains executive stock ownership guidelines.⁷⁴

10. Concluding Remarks and Outlook#

Occidental Petroleum is at a pivotal juncture, actively managing its extensive traditional oil and gas portfolio while simultaneously forging a path in the nascent carbon management industry. The company's recent performance, particularly in Q1 2025, demonstrates strong operational execution, successful cost control measures, and significant progress in its primary strategic objective of debt reduction.

Strengths:

• Operational Excellence: Proven ability to enhance efficiencies, especially in the Permian Basin, leading to lower costs and resilient production.⁴

• Robust Cash Flow Generation: Consistently generating substantial operating and free cash flow, which underpins its financial strategy.⁴

• Deleveraged Balance Sheet: Aggressive debt repayment has significantly improved financial flexibility and reduced interest expenses.⁶

• Low-Carbon Vision: Strategic commitment and tangible investments in DAC and CCUS position Occidental as a potential leader in a future carbon-constrained economy.²

• Diversified Portfolio: Operations across oil and gas, chemicals (OxyChem), and midstream provide some buffer against singular commodity risks.¹

• Key Investor Confidence: The substantial and continued investment by Berkshire Hathaway lends credibility to management's strategy.¹⁶

Weaknesses and Challenges:

• Commodity Price Sensitivity: Financial performance remains highly exposed to the volatility of global oil, gas, and chemical prices.¹⁰

• Absolute Debt Levels: Despite significant reductions, the overall debt quantum remains substantial, requiring continued financial discipline.¹⁶

• LCV Execution Risk: The large-scale deployment and economic viability of DAC and other LCV technologies carry considerable technological, operational, and market development risks.¹⁰

• Regulatory and Policy Uncertainty: The success of LCV is partly dependent on supportive government policies and the evolution of carbon markets, which are subject to change.¹⁰

• Geopolitical Exposure: International operations carry inherent geopolitical risks that could impact production and profitability.¹⁰

Outlook and Factors to Monitor:

Occidental's forward guidance indicates continued production stability, with modest growth anticipated, driven by international projects and ongoing onshore development.4 A key financial target is the expectation of approximately $1 billion in incremental pre-tax free cash flow from non-oil and gas sources by 2026, increasing to $1.5 billion in 2027, primarily driven by OLCV and OxyChem.4 The company remains committed to further debt reduction, aiming for a principal balance below $15 billion.16

Occidental's trajectory presents a unique investment proposition within the energy sector. It combines the characteristics of a leveraged traditional energy producer, benefiting from operational efficiencies and commodity price upswings, with a significant, embedded call option on the future of the carbon capture industry. This duality offers the potential for higher rewards but also entails compounded risks.

The market, as reflected in current analyst ratings and stock valuation relative to recent highs, appears to acknowledge Occidental's operational improvements and deleveraging success. However, a degree of skepticism or a "wait-and-see" approach seems to persist regarding the long-term economic viability and scalability of its LCV segment and its ability to generate substantial, reliable free cash flow independent of the traditional E&P business.

Key factors for investors to monitor closely include:

* Continued progress towards debt reduction targets and overall balance sheet health.

* Milestones and cost-performance of the STRATOS DAC project and other OLCV initiatives.

* Realized commodity prices and their impact on cash flow generation.

* Sustained operational cost control and efficiency gains across all segments.

* Developments in carbon markets and relevant climate policies.

* Any shifts in capital allocation strategy or major shareholder sentiment.

Successfully navigating these elements will be crucial for Occidental to realize its "bold vision" of delivering sustainable shareholder value while contributing to a lower-carbon future.

## Valuation Appendix

**Table: Occidental Petroleum Historical Financial Ratios & Metrics (Annual, 2013-2024)**

*(All values are as of Fiscal Year End. Sources: Macrotrends 26, Morningstar 33, Fidelity 32, MarketChameleon.85 Note: Some discrepancies exist between sources; primary source indicated where possible. Market Cap is Year-End, calculated from Year-End Close Price and Year-End Shares Outstanding where available.)*

| Year | P/E Ratio (Annual) | P/B Ratio (Annual) | ROE (%) (Annual) | Diluted EPS ($) | Dividends per Share ($) | Total Long-Term Debt (Billion $) | Debt/Equity Ratio (Annual) | Shareholder Equity (Billion $) | Shares Outstanding (Millions, Year-End) | Market Cap (Billion ,Year-EndApprox.)∣OperatingMargin(∣---∣---∣---∣---∣---∣---∣---∣---∣---∣---∣---∣---∣---∣∣2013∣8.83[81]∣1.19[80]∣13.93[84]∣7.32[28]∣2.56[29]∣6.939[30]∣0.16[82]∣43.372[83]∣805[31]∣51.99(64.62∗[56]∗805)∣38.43[86]∣29.20[27]∣∣2014∣74.50[81]∣1.30[80]∣1.48[84]∣0.79[28]∣2.88[29]∣6.838[30]∣0.20[82]∣34.959[83]∣781[31]∣46.00(58.85∗[56]∗781)∣6.34[86]∣3.19[27]∣∣2015∣0.00[81]∣1.61[80]∣-25.73[84]∣-10.23[28]∣3.00[29]∣6.855[30]∣0.28[82]∣24.350[83]∣766[31]∣39.38(51.41∗[56]∗766)∣-77.60[86]∣-62.73[27]∣∣2016∣0.00[81]∣2.01[80]∣-2.53[84]∣-0.75[28]∣3.02[32]∣9.819[30]∣0.46[82]∣21.497[83]∣764[31]∣43.20(56.53∗[56]∗764)∣-18.29[86]∣-5.69[27]∣∣2017∣36.08[81]∣2.28[80]∣6.26[84]∣1.70[28]∣3.06[32]∣9.328[30]∣0.45[82]∣20.572[83]∣766[31]∣46.98(61.33∗[56]∗766)∣10.62[86]∣10.43[27]∣∣2018∣9.89[81]∣1.87[80]∣19.56[84]∣5.39[28]∣3.10[32]∣10.201[30]∣0.48[82]∣21.330[83]∣763[31]∣40.70(53.33∗[56]∗763)∣31.46[86]∣23.18[27]∣∣2019∣0.00[81]∣1.00[80]∣-3.34[84]∣-1.22[28]∣3.14[32]∣38.537[30]∣1.13[82]∣34.232[83]∣810[31]∣30.98(38.25∗[56]∗810)∣1.69[86]∣-4.71[27]∣∣2020∣0.00[81]∣0.83[80]∣-67.37[84]∣-17.06[28]∣0.82[32]∣35.745[30]∣1.92[82]∣18.573[83]∣919[31]∣15.24(16.59∗[56]∗919)∣-88.19[86](-7.06[33])∣-88.02[27](-75.99[33])∣∣2021∣17.61[81]∣1.28[80]∣8.04[84]∣1.58[28]∣0.04[32]∣29.431[30]∣1.45[82]∣20.327[83]∣959[31]∣26.68(27.82∗[56]∗959)∣14.27[86](17.97[33])∣5.86[27](10.75[33])∣∣2022∣4.91[81]∣1.82[80]∣44.56[84]∣12.40[28]∣0.52[32]∣19.670[30]∣0.65[82]∣30.085[83]∣1002[31]∣61.07(60.95∗[56]∗1002)∣38.54[86](37.30[33])∣33.92[27](36.32[33])∣∣2023∣14.99[81]∣1.69[80]∣12.68[84]∣3.90[28]∣0.72[32]∣18.536[30]∣0.61[82]∣30.349[83]∣961[31]∣56.18(58.46∗[56]∗961)∣22.75[86](22.70[33])∣13.28[27](16.62[33])∣∣2024∣20.15[81]∣1.34[80]∣7.13[84]∣2.44[28]∣0.88[32]∣24.978[30]∣0.72[82]∣34.480[83]∣967[31]∣47.54(49.16∗[56]∗967)∣N/A(20.93[33])∣8.85[27](10.84[33])∣∗OperatingMarginandNetMarginhavetwovalueslistedwheresourcesdiffered:Macrotrends[27,86]andMorningstar.[33]MarketCapisestimatedusingYearClosestockpricefrom[56]andYear-EndSharesOutstandingfrom.[31]∗∗∗Table:OccidentalPetroleumShareholderReturnHistory(Annual,2013-2024)∗∗∣Year∣DividendsperShare() | Total Shares Repurchased (Number) | Value of Shares Repurchased (Million $) | Notes on Repurchase Program |

|---|---|---|---|---|

| 2013 | 2.56 29 | N/A | N/A | Data not readily available in snippets |

| 2014 | 2.88 29 | N/A | N/A | Data not readily available in snippets |

| 2015 | 3.00 29 | N/A | N/A | Data not readily available in snippets |

| 2016 | 3.02 32 | N/A | N/A | Data not readily available in snippets |

| 2017 | 3.06 32 | N/A | N/A | Data not readily available in snippets |

| 2018 | 3.10 32 | N/A (Q3: $1.5B returned via repurchases 49) | N/A | |

| 2019 | 3.14 32 | N/A (10-K inaccessible 87) | N/A | |

| 2020 | 0.82 32 | 635,583 48 | 11.5 48 | All from savings plan trustee |

| 2021 | 0.04 32 | 296,760 47 | 8.2 47 | All from savings plan trustee |

| 2022 | 0.52 32 | 47,700,000 42 | 3,000 42 | $3.0B program completed |

| 2023 | 0.72 32 | 29,399,715 44 | 1,798 44 | New $3.0B program (Feb 2023); $1.2B remaining at YE |

| 2024 | 0.88 32 | N/A (Completed 1.8Bofrepurchases[41])∣1,800[41]∣∣∗N/Aindicatesdatawasnotreadilyavailableorspecifiedintheprovidedresearchsnippetsforthatparticularyear/metric.∗∗∗WACCCalculationInputs(IllustrativeasofMay2025):∗∗∗∗∗Risk-FreeRate(10-YearU.S.TreasuryYield):∗∗ 4.51∗∗∗EquityRiskPremium(ERP):∗∗5.5∗∗∗Beta(\beta$) for OXY:** 0.88 (average of 0.81 and 0.88) 59

• Cost of Equity (Ke​) = Rf​+β×ERP Ke​=4.51%+0.88×5.5%=4.51%+4.84%=9.35%

• Cost of Debt (Kd​): Requires analysis of OXY's current debt yields. Using an illustrative yield of 7.5%.⁹⁰

• Corporate Tax Rate (T): Statutory US federal rate is 21%. Effective tax rate can vary (Q1 2025: 29.05% ³⁷). Using 21% for simplicity.

• Market Value of Equity (E): ~$40.63 billion ¹⁸

• Market Value of Debt (D): ~$25.99 billion (Total Debt) ³³

• Total Capital (V) = E + D: $40.63B + $25.99B = $66.62B

• Weight of Equity (We​) = E / V: 40.63/66.62≈0.61

• Weight of Debt (Wd​) = D / V: 25.99/66.62≈0.39

• WACC = (We​×Ke​) + (Wd​×Kd​×(1-T)) WACC=(0.61×9.35%)+(0.39×7.5%×(1-0.21)) WACC=5.7035%+(0.39×7.5%×0.79) WACC=5.7035%+(0.39×5.925%) WACC=5.7035%+2.31075% WACC≈8.01%

Disclaimer: This WACC calculation is illustrative and based on available snippets. A definitive WACC would require more precise inputs for cost of debt and tax rate.

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