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    Occidental Petroleum Corp (OXY)

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    Business Description

    Occidental Petroleum Corporation (OXY) is a multinational energy company engaged in the exploration, development, and production of oil, natural gas liquids (NGL), and natural gas, with operations in the United States, the Middle East, and North Africa . The company also manufactures and markets basic chemicals and vinyls through its chemical segment, Occidental Chemical Corporation (OxyChem) . Additionally, Occidental is involved in midstream and marketing activities, which include optimizing transportation and storage capacity and advancing low-carbon ventures .

    1. Oil and Gas - Engages in the exploration, development, and production of oil, natural gas liquids (NGL), and natural gas, with significant operations in the United States, the Middle East, and North Africa .
    2. Chemical - Manufactures and markets basic chemicals and vinyls, including chlorine, caustic soda, and polyvinyl chloride (PVC), through Occidental Chemical Corporation (OxyChem) .
    3. Midstream and Marketing - Supports the oil and gas and chemical businesses by optimizing transportation and storage capacity, and includes low-carbon ventures focused on carbon capture, utilization, and storage (CCUS) projects .
      • Low-Carbon Ventures - Focuses on reducing greenhouse gas emissions and developing new low-carbon technologies .

    Key Metrics

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    Executive Team

    NamePositionStart DateShort Bio
    Peter J. BennettVice President, President, Commercial Development U.S. Onshore Resources and Carbon Management2017Peter J. Bennett is responsible for the strategic direction and capital placement for Occidental's U.S. Onshore Resources and Carbon Management business, including securing partnerships to enhance the company’s portfolio .
    Christopher O. ChampionVice President, Chief Accounting Officer, and ControllerAugust 2019Christopher O. Champion joined Occidental in August 2019, previously serving as Senior Vice President, Chief Accounting Officer, and Controller at Anadarko Petroleum Corporation .
    Kenneth DillonSenior Vice President, President – International Oil and Gas OperationsDecember 2016Kenneth Dillon oversees operations in the Middle East, North Africa, South America, and the Gulf of Mexico, managing major projects. He has been with Occidental for over 30 years .
    Vicki HollubPresident and Chief Executive OfficerApril 2016Vicki Hollub has been with Occidental for over 40 years, holding various management and technical positions across three continents. She has been a member of Occidental's Board of Directors since 2015 .
    Richard A. JacksonSenior Vice President, President Operations U.S. Onshore Resources and Carbon ManagementOctober 2020Richard A. Jackson leads the development and operations of Occidental's U.S. onshore oil and gas businesses and advances the company's low-carbon technologies and opportunities .
    Sylvia J. KerriganSenior Vice President and Chief Legal OfficerOctober 2022Sylvia J. Kerrigan joined Occidental in October 2022, previously serving as Executive Director of the Kay Bailey Hutchison Energy Center for Business, Law and Policy at The University of Texas .
    Sunil MathewSenior Vice President and Chief Financial OfficerAugust 2023Sunil Mathew oversees the Accounting, Tax, Treasury, Internal Audit, and Investor Relations functions, as well as Corporate Planning and Business Development. He joined the company in 2004 .
    Robert L. PetersonExecutive Vice President, Essential ChemistryAugust 2023Robert L. Peterson has been with Occidental for over 25 years, previously serving as Senior Vice President and Chief Financial Officer from April 2020 until August 2023 .
    Jeff F. SimmonsSenior Vice President and Chief Petrotechnical Officer2021Jeff F. Simmons directs exploration activities for Occidental's Gulf of Mexico and international assets and manages the corporate subsurface engineering and geoscience departments .

    Questions to Ask Management

    1. Given the current volatility in oil prices and a macro environment where oil demand may not increase significantly, how do you justify maintaining or increasing capital expenditure in your U.S. onshore portfolio, particularly with the integration of CrownRock assets?

    2. Can you provide more details on your deleveraging strategy, specifically how you plan to achieve your medium-term principal debt target of $15 billion while also investing heavily in projects like STRATOS and the OxyChem expansion?

    3. With the increased capital budget of approximately $900 million in 2025 for OxyChem, up from $200 million this year, what assurances can you offer that the expected $325 million uplift in earnings will materialize, especially given potential market uncertainties?

    4. The integration of CrownRock assets is expected to bring synergies and operational efficiencies; can you quantify these synergies and explain how they will impact your cost structure and production targets in the near term?

    5. Considering the substantial investment in your Direct Air Capture (DAC) projects like STRATOS, can you elaborate on the risks associated with the technological advancements and the phased construction approach, and how these might affect your timelines and returns?

    Share Repurchase Program

    Program DetailsProgram 1
    Approval DateFebruary 2023
    End Date/DurationN/A
    Total additional amount$3.0 billion
    Remaining authorization amount$1.2 billion
    DetailsEnhance shareholder value by reducing outstanding shares, aligned with cash flow priorities

    Debt Maturity Schedule

    YearAmount Due (millions)Debt TypeInterest Rate (%)% of Total Debt
    20251,500 3.500% senior notes, 364-day term loan, 5.875% senior notes, 5.500% senior notes 3.500, 5.875, 5.500 5.6% = (1,500 / 26,635) * 100
    20264,100 5.550% senior notes, 3.400% senior notes, Two-year term loan, 3.200% senior notes, 7.500% debentures 5.550, 3.400, 6.926, 3.200, 7.500 15.4% = (4,100 / 26,635) * 100
    20271,500 8.500% senior notes, 3.000% senior notes, 7.125% debentures, 7.000% debentures, 5.000% senior notes 8.500, 3.000, 7.125, 7.000, 5.000 5.6% = (1,500 / 26,635) * 100
    20281,024 6.625% debentures, 7.150% debentures, 7.200% senior debentures, 6.375% senior notes 6.625, 7.150, 7.200, 6.375 3.8% = (1,024 / 26,635) * 100
    20291,653 7.200% debentures, 7.950% debentures, 8.450% senior notes, 3.500% senior notes, 5.200% senior notes 7.200, 7.950, 8.450, 3.500, 5.200 6.2% = (1,653 / 26,635) * 100
    20303,186 Variable rate bonds, 8.875% senior notes, 6.625% senior notes 5.200 (variable), 8.875, 6.625 12.0% = (3,186 / 26,635) * 100
    20312,543 6.125% senior notes, 7.500% senior notes, 7.875% senior notes 6.125, 7.500, 7.875 9.5% = (2,543 / 26,635) * 100
    20321,000 5.375% senior notes 5.375 3.8% = (1,000 / 26,635) * 100
    20341,200 5.550% senior notes 5.550 4.5% = (1,200 / 26,635) * 100
    20362,400 6.450% senior notes, Zero Coupon senior notes 6.450, Zero Coupon 9.0% = (2,400 / 26,635) * 100
    2039591 0.000% loan, 4.300% senior notes, 7.950% senior notes 0.000, 4.300, 7.950 2.2% = (591 / 26,635) * 100
    2040737 6.200% senior notes 6.200 2.8% = (737 / 26,635) * 100
    2044191 4.500% senior notes 4.500 0.7% = (191 / 26,635) * 100
    2045296 4.625% senior notes 4.625 1.1% = (296 / 26,635) * 100
    20461,541 6.600% senior notes, 4.400% senior notes 6.600, 4.400 5.8% = (1,541 / 26,635) * 100
    2047258 4.100% senior notes 4.100 1.0% = (258 / 26,635) * 100
    2048304 4.200% senior notes 4.200 1.1% = (304 / 26,635) * 100
    2049280 4.400% senior notes 4.400 1.1% = (280 / 26,635) * 100
    20541,000 6.050% senior notes 6.050 3.8% = (1,000 / 26,635) * 100
    2096123 7.730% debentures, 7.500% debentures, 7.250% debentures 7.730, 7.500, 7.250 0.5% = (123 / 26,635) * 100

    Auditor

    NameStart DateEnd DateReason for Change
    KPMG LLP2002 PresentCurrent auditor

    Latest news

    Recent developments and announcements about OXY.

    Financial Reporting

      Earnings Report

      ·
      Jan 10, 2025, 9:39 PM

      Occidental Petroleum Corporation (OXY) has released its Fourth Quarter 2024 Earnings Considerations as of January 10, 2025. Below are the key highlights from the report:

      Earnings Considerations

      • Average Diluted Shares Outstanding: 983.9 million shares for Q4 2024.

      Realized Prices

      • Oil:
        • United States: $69.27 per barrel
        • International: $72.55 per barrel
        • Total Worldwide: $69.73 per barrel
      • Natural Gas Liquids (NGL):
        • United States: $21.14 per barrel
        • International: $27.11 per barrel
        • Total Worldwide: $21.80 per barrel
      • Natural Gas:
        • United States: $1.26 per Mcf
        • International: $1.88 per Mcf
        • Total Worldwide: $1.41 per Mcf.

      Comparison to Index Prices

      • Worldwide Oil:
        • Realized prices were 99% of WTI and 94% of Brent.
      • Worldwide NGL:
        • Realized prices were 31% of WTI.
      • Domestic Natural Gas:
        • Realized prices were 47% of NYMEX.

      Significant Trends

      • The report highlights that the earnings considerations are preliminary and subject to finalization. It does not provide a comprehensive view of all results or adjustments for Q4 2024.

      This information provides a snapshot of Occidental's financial performance and market realizations for the fourth quarter of 2024. For further details, refer to the full earnings considerations document.

      Earnings Report

      ·
      Nov 12, 2024, 12:00 AM

      Occidental Petroleum Corporation (OXY) Third Quarter 2024 Earnings Results

      Occidental Petroleum Corporation has released its financial results for the third quarter of 2024, showcasing strong operational performance across its segments. Here are the key highlights:

      • Net Income: The company reported a net income attributable to common stockholders of $964 million, or $0.98 per diluted share. Adjusted income was $977 million, or $1.00 per diluted share .

      • Operating Cash Flow: Occidental generated an operating cash flow of $3.8 billion, with operating cash flow before working capital adjustments at $3.1 billion .

      • Free Cash Flow: The company achieved a free cash flow before working capital of $1.5 billion, supported by capital spending of $1.7 billion and contributions from noncontrolling interests .

      • Production: Total company production was 1,412 thousand barrels of oil equivalent per day (Mboed), exceeding the mid-point of guidance by 22 Mboed. The Permian Basin led this performance with an average production of 729 Mboed .

      • Debt Reduction: Occidental repaid $4.0 billion of debt, reaching nearly 90% of its short-term debt reduction target .

      • Segment Performance:

        • Oil and Gas: Pre-tax income for this segment was $1.2 billion, with adjusted income increasing from the previous quarter due to higher sales volumes, despite lower realized commodity prices .
        • OxyChem: The chemical segment exceeded guidance with a pre-tax income of $304 million, maintaining flat income compared to the second quarter .
        • Midstream and Marketing: This segment reported a pre-tax income of $631 million, including significant gains from the sale of common units in Western Midstream Partners, LP .

      • Commodity Prices: The average worldwide realized crude oil price was $75.33 per barrel, a decrease of 6% from the prior quarter. Natural gas liquids prices also saw a decrease, while domestic gas prices fell significantly by 26% to $0.40 per Mcf .

      These results reflect Occidental's robust operational capabilities and strategic focus on debt reduction and efficient capital management, positioning the company well for future growth and stability in the energy sector.

    Financial Actions

      Strategic Assets

      ·
      Aug 1, 2024, 12:00 AM

      Occidental Petroleum Corporation Completes Acquisition of CrownRock

      On August 1, 2024, Occidental Petroleum Corporation (NYSE: OXY) announced the completion of its acquisition of CrownRock, L.P. The transaction was valued at approximately $12.4 billion, which included $9.4 billion in cash, 29,560,619 shares of Occidental's common stock, and the assumption of $1.2 billion of CrownRock's existing debt .

      Details of the Transaction

      • Cash Consideration: Approximately $9.4 billion, inclusive of working capital and other customary purchase price adjustments.
      • Stock Consideration: 29,560,619 shares of Occidental's common stock were issued to the sellers.
      • Debt Assumption: Occidental assumed $1.2 billion of existing debt from CrownRock and its subsidiaries .

      Potential Effects on Occidental's Financials and Operations

      • Strengthened Portfolio: The acquisition is expected to enhance Occidental's asset portfolio, making it more robust and differentiated, according to Vicki Hollub, President and CEO of Occidental .
      • Operational Synergies: The integration of CrownRock's assets and team members is anticipated to create a high-performing employee base focused on developing low-emission, low-cost energy .
      • Financial Impact: The transaction involves a significant cash outlay and stock issuance, which may affect Occidental's cash reserves and shareholder equity. The assumption of debt could also impact the company's leverage ratios .

      This acquisition aligns with Occidental's strategy to expand its presence in the energy sector, particularly in the U.S., and to advance its low-carbon initiatives .

      Dividend Policy

      ·
      Dec 12, 2023, 12:00 AM

      Occidental Petroleum Corporation (OXY) has announced an increase in its quarterly common stock dividend per share by $0.04, raising it to $0.22. This change will take effect beginning with the February 2024 declaration. This decision aligns with the company's shareholder return priorities and follows the acquisition of CrownRock's assets, which is expected to generate immediate free cash flow accretion and support the dividend increase .