Occidental Q4 Earnings Beat Estimates, Revenues Miss, Production Up

Occidental Petroleum Corporation OXY reported fourth-quarter 2025 earnings of 31 cents per share, which outpaced the Zacks Consensus Estimate of 19 cents by 63.2%. The bottom line dropped 61.3% year over year.
 
GAAP loss in the reported quarter was 7 cents per share compared with the loss of 30 cents in the year-ago quarter.

Adjusted earnings in 2025 were $2.21 per share, down 36.1% from $3.46 reported in 2024.

Total Revenues of OXY

Total revenues were $5.42 billion, which missed the Zacks Consensus Estimate of $5.88 billion by 7.8%. The top line also lagged 5.2% year over year due to lower contributions from its Oil & Gas segment.

Total revenues in 2025 were $22.08 billion, down 0.5% from $22.2 billion reported in 2024.

OXY’s Q4 Segmental Details

Oil and Gas revenues totaled $4.81 billion in the reported quarter, down 14.5% year over year.

Midstream & Marketing revenues of $451 million jumped 196.7% year over year.

Production & Sales at OXY

Total production volume was 1,481 thousand barrels of oil equivalent per day (Mboe/d). The metric surpassed the company’s guided range of 1,440-1,480 Mboe/d.

Total sales volume was 1,480 Mboe/d, up 1.2% from the year-ago period.

OXY’s Realized Prices

Realized prices of crude oil dropped 15.1% year over year to $59.22 per barrel on a worldwide basis. Realized natural gas liquid prices dropped 23.5% year over year to $16.68 per barrel globally.

Natural gas prices decreased 11.1% year over year to $1.12 per thousand cubic feet.

Highlights of OXY’s Q4 Release

Occidental strengthened its balance sheet with the completion of the OxyChem sale on Jan. 2, 2026, reducing debt by $5.8 billion since mid-December 2025 and bringing principal debt to date to $15 billion.

Occidental reported strong fourth-quarter production due to robust contributions from Permian assets. Gulf of America’s average daily production volumes in the fourth quarter were 144 Mboe/d, up 5.1% year over year, which also contributed to the overall strong volumes.

Sequential improvement in the Midstream and Marketing segment’s performance was due to higher gas margins from transportation capacity optimization in the Permian, reduced long-haul crude transportation costs and higher sulfur prices at Al Hosn.

Total costs and reduction in the fourth quarter of 2025 were $4.84 billion, down 7.3% from $5.22 billion in the year-ago quarter.

Interest and debt expenses decreased 26.6% to $232 million from $316 million in the year-ago quarter, a positive impact of the ongoing debt reduction.

Financial Position of OXY

As of Dec. 31, 2025, Occidental had cash and cash equivalents of $1.97 billion compared with $2.13 billion as of Dec. 31, 2024.

Occidental had long-term debt (net of current portion) of $20.62 billion as of Dec. 31, 2025 compared with $24.98 billion as of Dec. 31, 2024. The company retired $13.9 billion in debt in the last 20 months, which lowered annual interest expenses by $740 million.

OXY generated $11.57 billion of operating cash flow in 2025 compared with $11.72 billion in 2024.

Total capital expenditure was $6.43 billion in 2025 compared with $6.26 billion in the year-ago period.

OXY’s Guidance

For the first quarter of 2026, OXY expects production in the band of 1,385-1,425 Mboe/d. Output from the Permian Resources segment is anticipated at 766-786 Mboe/d. Occidental expects international production volumes for the first quarter of 2026 to be in the range of 229-235 Mboe/d.

Exploration expenses are estimated to be $100 million and interest expenses to be $220 million in the first quarter of 2026.

For 2026, OXY plans to bring online 460-510 wells in the Permian region and 150-170 wells in the Rockies region.

Capital expenditure for 2026 is projected to be in the range of $5.5-$5.9 billion.

Zacks Rank of OXY

Occidental currently carries a Zacks Rank #4 (Sell).

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

Recent Sector Releases

Devon Energy Corp. DVN reported fourth-quarter 2025 earnings per share (EPS) of 82 cents, surpassing the Zacks Consensus Estimate of 81 cents by 1.2%. Fourth-quarter earnings were down 29.3% year over year. 

Total revenues for the quarter were $4.12 billion, which beat the Zacks Consensus Estimate of $4.02 billion by 2.5%. The top line decreased 6.4% from the year-ago quarter’s figure. 

Plains All American Pipeline, L.P. PAA reported fourth-quarter 2025 adjusted earnings of 40 cents per unit, which lagged the Zacks Consensus Estimate of 47 cents by 14.9%. In the year-ago quarter, the firm reported earnings of 42 cents.

Net sales of $10.57 billion missed the Zacks Consensus Estimate of $11.55 billion by 8.5%. The top line also declined 12.2% from the year-ago quarter’s figure of $12.04 billion. 

CNX Resources Corporation CNX reported fourth-quarter 2025 operating earnings of 68 cents per share, which beat the Zacks Consensus Estimate of 40 cents by 70.0%. The bottom line also increased 19.3% from 57 cents in the year-ago quarter.

The company reported revenues of $419 million, which topped the Zacks Consensus Estimate of $373 million by 12.3%. The top line also rose 8.6% from the prior-year quarter’s $386 million.

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