Occidental Cuts $5.8B Debt, Raises Dividend 8% After OxyChem Sale
Occidental Petroleum reported a Q4 2025 net loss of $68 million, or $0.07 per diluted share, driven by divestiture charges from its OxyChem sale closed Jan. 2, 2026. Proceeds enabled a $5.8 billion debt reduction to $15.0 billion and an 8% dividend increase to $0.26 per share.
1. Q4 2025 Financial Results
Occidental posted a net loss of $68 million ($0.07 per diluted share) in Q4 2025, compared with adjusted earnings of $315 million ($0.31 per share). Charges tied to the divestment of its OxyChem chemical unit drove the gap between GAAP and adjusted results.
2. Debt Reduction and Dividend Boost
Proceeds from the OxyChem sale enabled Occidental to reduce debt by $5.8 billion since mid-December, bringing principal debt down to $15.0 billion as part of its post-Anadarko deleveraging strategy. The company raised its quarterly dividend by 8% to $0.26 per share, marking a doubling over four years.
3. Operational Performance and Cash Generation
Fourth-quarter output averaged 1.481 million barrels of oil equivalent per day, 21 Mboed above guidance midpoint, led by the Permian Basin and Rockies. Occidental generated $2.6 billion in operating cash flow ($2.7 billion before working capital adjustments) and $1.0 billion in free cash flow.
4. Reserves Replacement Metrics
At year-end 2025, Occidental held 4.6 billion barrels of oil equivalent in proved reserves. The all-in reserves replacement ratio was 98%, with an organic replacement ratio of 107%, reflecting continued resource additions in key basins.