Occidental Petroleum Q2 Earnings Surpass, Revenues Miss Estimates

Occidental Petroleum Corporation OXY reported second-quarter 2025 earnings of 39 cents per share, which beat the Zacks Consensus Estimate of 28 cents by 39.3%. However, the bottom line dropped 62.1% year over year. 

GAAP earnings in the reported quarter were 26 cents per share compared with $1.03 in the year-ago quarter. The difference between GAAP and non-GAAP earnings was due to a 13-cent impact from after-tax non-core adjustments.

Total Revenues of OXY

Total revenues were $6.45 billion, which missed the Zacks Consensus Estimate of $6.47 billion by 0.3%. The top line also lagged 6.2% year over year due to softer contributions from its Oil & Gas segment and Chemical segment.

Occidental Petroleum Corporation Price, Consensus and EPS Surprise

Occidental Petroleum Corporation price-consensus-eps-surprise-chart | Occidental Petroleum Corporation Quote

OXY’s Q2 Segmental Details

Oil and Gas revenues totaled $5 billion in the reported quarter, down 8.4% year over year.

Chemical revenues amounted to $1.2 billion, down 3.7% year over year.

Midstream & Marketing revenues of $426 million improved 51.1% year over year.

Production & Sales of OXY

Total production volume was 1,400 thousand barrels of oil equivalent per day (Mboe/d). The metric was within the company’s guidance of 1,377-1,417 Mboe/d.

Total sales volume was 1,397 Mboe/d, up 10.9% from the year-ago period.

OXY’s Realized Prices

Realized prices of crude oil dropped 20.2% year over year to $63.76 per barrel on a worldwide basis. Realized natural gas liquids prices dropped 2.4% year over year to $20.71 per barrel globally.

Natural gas prices increased 146.3% year over year to $1.33 per thousand cubic feet.

Highlights of OXY’s Q2 Release

Courtesy of operational efficiency, Occidental was able to reduce the mid-point of 2025 capital guidance by $100 million and international operating costs by $50 million.

Occidental, through operational efficiency, in the first half of 2025 was able to reduce Delaware Basin drilling duration per well by 20% from 2024 levels, resulting in a 14% reduction in per-well costs.

Sequential improvement in Midstream and Marketing segment’s performance was due to higher gas marketing margins from transportation capacity optimization in the Permian and higher sulfur prices at Al Hosn. 

Interest and debt expenses increased 9.5% to $276 million from $252 million in the year-ago quarter.

Financial Position of OXY

As of June 30, 2025, Occidental had cash and cash equivalents of $2.33 billion compared with $2.13 billion as of Dec. 31, 2024.

Occidental had long-term debt (net of current portion) of $23.34 billion as of June 30, 2025, compared with $24.97 billion as of Dec. 31, 2024. The company retired $7.5 billion in debt in the last 13 months, which lowered annual interest expenses by $410 million.

OXY generated $2.96 billion of operating cash flow in second-quarter 2025 compared with $2.39 billion in second-quarter 2024.

Total capital expenditure was $3.9 billion in the first half of 2025 compared with $3.55 billion in the year-ago period.

OXY’s Guidance

For the third quarter of 2025, OXY expects production of 1,415-1,455 Mboe/d. Output from the Permian Resources segment is anticipated at 779-799 Mboe/d. Occidental expects international production volumes for third-quarter 2025 in the range of 239-245 Mboe/d.

Exploration expenses are estimated to be $70 million and interest expenses to be $285 million in the third quarter of 2025.

For 2025, OXY expects production of 1,400-1,430 Mboe/d. Output from the Permian Resources segment is anticipated at 768-784 Mboe/d. Occidental expects international production volumes for third-quarter 2025 in the range of 233-237 Mboe/d.

Capital expenditure for 2025 is expected to be in the range of $7.1 billion to $7.3 billion.

Zacks Rank of OXY

Occidental currently carries a Zacks Rank #3 (Hold). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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DVN’s long-term (three-to-five years) earnings growth rate is currently pinned at 4.26%. The Zacks Consensus Estimate for 2025 EPS is pegged at $4.14, indicating a year-over-year decline of 14.11%.

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