10-KPeriod: FY2024

OCCIDENTAL PETROLEUM CORP /DE/ Annual Report, Year Ended Dec 31, 2024

Filed February 18, 2025For Securities:OXYOXY-WT

Summary

Occidental Petroleum Corporation's (OXY) 2024 Form 10-K highlights a year of strategic integration and operational focus. The company completed its significant acquisition of CrownRock, bolstering its Permian Basin assets, and continued to invest heavily in its core oil and gas operations, as well as its chemical and midstream segments. Financially, OXY reported a decrease in net income year-over-year, primarily driven by lower commodity prices and the impact of the CrownRock acquisition's associated debt and integration costs. The company's strategic priorities remain focused on delivering a sustainable and growing dividend, deleveraging its debt to below $15 billion, and advancing its low-carbon ventures, particularly in direct air capture (DAC) and carbon capture, utilization, and storage (CCUS) projects. The company's commitment to sustainability is evident in its ongoing efforts to reduce emissions intensity and its progress on the STRATOS DAC facility, with commissioning expected in mid-2025.

Financial Highlights

50 data points
Beta

Revenue

$22.02B

85.8% Gross Margin

Net Income

$3.08B

14.0% Net Margin

EPS (Diluted)

$2.44

Total Assets

$85.44B

Cash & Equivalents

$2.13B

Free Cash Flow

$5.18B

Financial Statements
Beta
Revenue$22.02B
Cost of Revenue$3.12B
Gross Profit$18.90B
SG&A Expenses$960.00M
Net Income$3.08B
EPS (Basic)$2.59
EPS (Diluted)$2.44
Shares Outstanding (Basic)911.80M
Shares Outstanding (Diluted)967.10M

Key Highlights

  • 1Completed the $12.4 billion acquisition of CrownRock, significantly expanding its Permian Basin footprint.
  • 2Invested $7.0 billion in capital expenditures in 2024, with $5.8 billion to $6.0 billion planned for 2025, primarily in oil and gas assets.
  • 3Reported a decrease in net income to $2.38 billion from $3.77 billion in the prior year, influenced by lower commodity prices and acquisition-related costs.
  • 4Maintained a strong focus on deleveraging, with total debt at $24.4 billion as of December 31, 2024, and a strategic goal to reduce principal debt below $15 billion.
  • 5Advanced its low-carbon business strategy, with the STRATOS DAC facility progressing towards mid-2025 commissioning and active development of sequestration hub plans.
  • 6Declared a quarterly dividend of $0.24 per share, representing a 9% increase from the previous quarter, underscoring a commitment to shareholder returns.
  • 7Experienced an increase in oil and gas production volumes, largely driven by the CrownRock acquisition, while facing lower average realized prices for oil, NGL, and natural gas.

Frequently Asked Questions

Occidental reported a net income attributable to common stockholders of $2.38 billion in 2024, a decrease from $3.77 billion in 2023. This was primarily due to lower commodity prices and increased debt and integration costs associated with the CrownRock acquisition. Net sales also decreased slightly to $26.73 billion from $28.26 billion.

Occidental's strategy prioritizes maintaining its production base, delivering a sustainable and growing dividend, enhancing its asset base, advancing low-carbon technologies, and importantly, deleveraging its debt. The company aims to reduce its principal debt below $15 billion before resuming significant share repurchases.

Occidental is making progress on its low-carbon initiatives, particularly the STRATOS direct air capture (DAC) facility, which is expected to begin operations in mid-2025. The company is also actively developing sequestration hub plans and has submitted numerous Class VI CO2 injection well permit applications. These ventures are a key part of Occidental's long-term strategy to reduce its carbon footprint and capitalize on the energy transition.

The CrownRock acquisition, completed in August 2024 for $12.4 billion, significantly expanded Occidental's high-margin production and low-breakeven inventory in the Permian Basin. While it boosted oil and gas volumes, it also increased the company's debt and resulted in higher interest expenses and acquisition-related costs, impacting overall profitability for the year.