Occidental Q3 2025 Earnings: Strong Performance and Strategic Shifts
Highlights
- Operating cash flow: $3.2 billion
- Free cash flow: $1.5 billion
- Oil production: 1.47 million BOE/day
- Permian Basin production: 800,000 BOE/day, highest in Oxy's history
- Debt repayment: $1.3 billion in Q3, $3.6 billion year-to-date
- Lease operating expense: $8.11 per BOE
- Resource expansion in Permian: +2.5 billion BOE
Occidental Petroleum has announced a solid third quarter, highlighting significant strides in operational and strategic redirection. The company's strong results are underscored by the divestiture of OxyChem, marking a transformative move for the company and signaling a sharpened focus on its core oil and gas business.
Strategic Divestiture Strengthens Financial Footing
The decision to sell OxyChem reflects Occidental's commitment to enhancing its oil and gas portfolio, building on its proven capabilities in maximizing resource recovery and maintaining a low geopolitical risk profile. With this sale, Occidental plans to bolster its balance sheet by reducing its principal debt target to less than $15 billion, a move that ensures strengthened financial resilience and expanded shareholder returns.
Record-Breaking Production and Financial Metrics
Occidental achieved an impressive $3.2 billion in operating cash flow and $1.5 billion in free cash flow. The company reported an increase in oil and gas production, hitting 1.47 million barrels of oil equivalent per day, surpassing previous guidance. Notably, the Permian Basin saw its highest ever production at 800,000 BOE per day. This production feat was coupled with a reduction in lease operating expenses to $8.11 per barrel, demonstrating improved operational cost efficiencies.
Focus on Permian Basin and Resource Expansion
The expansion of Occidental's Permian resource base by 2.5 billion BOE highlights the company's strategic focus on improving recovery rates and capitalizing on advanced technology applications. This growth positions the Permian as a core driver in Occidental's future development efforts, underpinned by a strategy centered around low-cost operations and flexible investment.
As Occidental continues to navigate a dynamic market environment, its recent strategic decisions and robust operational performance in Q3 set the stage for a strengthened future in its oil and gas ventures.