Occidental Petroleum Beats Q4 Estimates with $0.31 EPS and Cuts Debt by $5.8B
Occidental Petroleum reported Q4 2025 adjusted earnings of $0.31 per share, beating estimates by $0.13 and driven by midstream pre-tax income of $204 million versus a $123 million loss year-over-year. After closing the OxyChem sale, the company cut debt by $5.8 billion to $15 billion and hiked its quarterly dividend by over 8%.
1. Q4 2025 Financial Results
Occidental delivered adjusted earnings of $0.31 per share in Q4 2025, surpassing consensus by $0.13. The midstream unit swung to a $204 million pre-tax profit from a $123 million loss a year earlier, partly offsetting lower realized oil prices of $59.22 per barrel.
2. Debt Reduction via OxyChem Sale
Completion of the OxyChem divestiture on January 2, 2026, generated proceeds that enabled the company to trim total debt by $5.8 billion since mid-December 2025, reducing its load to $15 billion and reinforcing the balance sheet following major acquisitions.
3. Production Guidance and Capital Allocation
Production rose to 1.48 million boe per day in Q4, topping guidance, and management forecasts 2026 volumes between 1.42 and 1.48 million boe per day. Planned capital spending of $5.5–$5.9 billion aims to boost free cash flow by more than $1.2 billion.
4. Dividend Increase and Analyst Outlook
The company raised its quarterly dividend by over 8% to $0.26 per share, payable April 15, and has prompted multiple firms to lift price targets, reflecting confidence in its improved operational and financial position.