Summary
Occidental Petroleum Corporation (OXY) faced a challenging year in 2020, significantly impacted by the COVID-19 pandemic and the resulting decline in oil prices, which led to a substantial net loss of $15.7 billion. Despite these headwinds, the company implemented a robust liquidity and cost-reduction strategy, including a significant capital budget reduction, overhead savings, and dividend cuts. Occidental also focused on strengthening its balance sheet by issuing new debt to retire near-term maturities and completing asset divestitures totaling $8.2 billion in net proceeds since the Anadarko acquisition. The company's operations are diversified across oil and gas, chemicals (OxyChem), and midstream and marketing segments, with a strategic focus on capital efficiency, debt reduction, and advancing low-carbon ventures. Key risks highlighted for investors include the continued volatility of commodity prices, potential further impairments of oil and gas properties, and the ongoing impact of the COVID-19 pandemic. The company is actively managing its debt and liquidity, with plans to continue asset divestitures. Looking ahead, Occidental is prioritizing projects that reduce its carbon footprint and aims to achieve net-zero emissions by 2040, leveraging its expertise in carbon capture and storage.
Financial Highlights
48 data points| Revenue | $17.81B |
| Cost of Revenue | $2.41B |
| Gross Profit | $15.40B |
| SG&A Expenses | $864.00M |
| Net Income | -$14.83B |
| EPS (Basic) | $-17.06 |
| EPS (Diluted) | $-17.06 |
| Shares Outstanding (Basic) | 918.70M |
| Shares Outstanding (Diluted) | 918.70M |
Key Highlights
- 1Occidental Petroleum reported a significant net loss of $15.7 billion for 2020, heavily influenced by a $9.2 billion impairment charge on oil and gas properties and the broader impact of the COVID-19 pandemic on commodity prices.
- 2The company implemented a comprehensive liquidity enhancement and cost reduction program, including reducing its 2020 capital budget by approximately 50% and realizing $2.3 billion in annualized overhead and operating cost savings.
- 3Occidental successfully addressed its near-term debt maturities by issuing $7.0 billion in senior unsecured notes and using asset sale proceeds to retire approximately $6.0 billion in debt maturing in 2021-2023.
- 4Total proved oil and gas reserves from continuing operations decreased by approximately 25% year-over-year to 2.9 billion Boe, primarily due to price-related revisions and asset divestitures.
- 5The Chemical segment (OxyChem) saw reduced sales and earnings due to lower demand for caustic soda and PVC, though PVC pricing rebounded in the latter half of the year.
- 6The company reported a substantial impairment of its equity investment in Western Midstream Partners, L.P. (WES) by $2.7 billion in the third quarter of 2020.
- 7Occidental is actively pursuing its sustainability strategy, aiming for net-zero operational emissions by 2040, with a focus on carbon capture, utilization, and storage (CCUS) through its Oxy Low Carbon Ventures (OLCV) segment.