Occidental Petroleum(NYSE) OXY

Occidental helps meet the world's energy needs by pulling oil and gas from the ground. It also makes chemical products and works on ways to capture carbon from the air. These services support power plants, manufacturers, and transportation companies across the globe.

What Occidental Does

• Oil and Gas: Explores and produces oil, natural gas, and natural gas liquids in the United States, Middle East, and North Africa.
• Chemical: Manufactures basic chemicals and vinyls used in industrial and consumer products; reported as discontinued operations following a sale agreement.
• Midstream and Marketing: Gathers, processes, and transports oil and gas using a network of pipelines and storage facilities.
• Oxy Low Carbon Ventures: Develops technologies like direct air capture to remove carbon dioxide from the atmosphere and store it underground.

Expansion and Strategic Moves

• Entered a purchase and sale agreement in October 2025 to sell its chemical business to Berkshire Hathaway for $9.7 billion.
• Completed construction of the central processing facilities for STRATOS, a large-scale facility designed to capture carbon dioxide directly from the air.
• Progressed development of five carbon sequestration hubs across Texas and Louisiana to store carbon dioxide underground.
• Acquired CrownRock to expand its oil and gas production footprint in the United States.

What Makes the Company Unique

Occidental holds leading production positions in major American oil fields like the Permian Basin and operates the first large-scale carbon capture facility in Texas. Its expertise in using carbon dioxide to help extract more oil from older wells provides a technical advantage in the transition to lower-carbon energy.

The Recent Financial Story

• Revenue was $5 billion in Q4 2025, down 27.6% from $6.9 billion in Q4 2024.
• Net income reached $102 million in Q4 2025, up 181.6% from a loss of $125 million in Q4 2024.
• Free cash flow hit $1.9 billion in Q4 2025, up 19.4% from $1.6 billion in Q4 2024.
• Operating income was $467 million in Q4 2025, down 65.7% from $1.4 billion in Q4 2024.

Bottom Line

Occidental has shifted its focus toward high-return oil production and carbon management while selling its chemical business to reduce debt. This strategy balances traditional energy production with new technology aimed at reducing atmospheric emissions.