01—Abstract
Summary
Summary of the 10-Q filed November 10, 2025. Cited figures are marked; the original filing is the authoritative source.
Occidental Petroleum Corporation's third-quarter 2025 report shows a solid financial performance, though with some year-over-year declines in key metrics.
Net income attributable to common stockholders was $661 milliona, or $0.65 per diluted share, compared to $964 million, or $0.98 per diluted share, in the prior year's third quarter. This decrease was primarily driven by lower commodity prices, particularly for crude oil, which impacted the oil and gas segment's profitability, and increased depreciation from the full integration of CrownRock assets. A significant strategic development is the announced sale of OxyChem to Berkshire Hathaway for $9.7 billion, expected to close in Q4 2025.
Occidental intends to use the majority of these proceeds for debt reduction, a key priority. The company also reported continued deleveraging efforts through debt repayments and warrant exercises, strengthening its balance sheet. While the company navigates ongoing commodity price volatility and inflationary pressures, its focus remains on maintaining production, delivering a sustainable dividend, and advancing its low-carbon ventures.
02—Key points
Key Highlights
- Net income attributable to common stockholders decreased year-over-year to $661 million ($0.65/share) from $964 million ($0.98/share) in Q3 2024, impacted by lower commodity prices.
- Occidental announced the sale of OxyChem to Berkshire Hathaway for $9.7 billion, expected to close in Q4 2025, with proceeds primarily designated for debt reduction.
- Total assets decreased to $83.5 billion as of September 30, 2025, from $85.4 billion as of December 31, 2024, largely due to debt repayments and asset divestitures.
- Long-term debt, net, was reduced to $20.8 billion from $25.0 billion, reflecting proactive debt management and the use of proceeds from asset sales and warrant exercises.
- Net cash provided by operating activities for the first nine months of 2025 was $7.9 billion, a slight decrease from $8.1 billion in the same period of 2024, influenced by higher income tax and interest payments.
- Capital expenditures for the first nine months of 2025 were $5.7 billion, an increase from $5.2 billion in the prior year, reflecting ongoing investments primarily in the oil and gas segment, including CrownRock assets.
- The company reported progress in its low-carbon ventures, though specific financial contributions are not detailed separately in this filing.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed November 10, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $6.62B$7.17B | −7.7% |
| Cost of Revenue | $812.00M$889.00M | −8.7% |
| Gross Profit | $5.81B$6.28B | −7.5% |
| SG&A Expenses | $277.00M$268.00M | +3.4% |
| Net Income | $842.00M$1.14B | −26.1% |
| EPS (Basic) | $0.67$1.03 | −35.0% |
| EPS (Diluted) | $0.65$0.98 | −33.7% |
| Shares Outstanding (Basic) | 986.40M927.50M | +6.4% |
| Shares Outstanding (Diluted) | 1.00B975.70M | +2.8% |
05—Questions
Frequently Asked Questions
What is the impact of the announced OxyChem sale on Occidental's financial position?
The sale of OxyChem to Berkshire Hathaway for $9.7 billion is a significant event expected to close in Q4 2025. Occidental plans to use the majority of the after-tax proceeds to significantly reduce its outstanding debt, thereby strengthening its balance sheet and improving its financial flexibility. This strategic move also signals a shift in the company's operational focus towards its core oil and gas and low-carbon ventures businesses.
How have commodity prices affected Occidental's recent financial performance?
Commodity prices, particularly for crude oil, have impacted Occidental's profitability. The report indicates lower crude oil prices compared to the prior year's third quarter, which directly affected the revenue and income from the oil and gas segment. While prices showed some recovery between Q2 and Q3 2025, year-over-year comparisons reflect this pricing pressure.
What is Occidental's strategy for managing its debt load?
Occidental is actively managing its debt, evidenced by significant repayments of long-term debt totaling $3.6 billion in the first nine months of 2025. The company plans to further accelerate deleveraging using the proceeds from the OxyChem sale and has prioritized excess cash flow for debt reduction, aiming to bring principal debt below $15 billion.
What is the outlook for Occidental's capital expenditures and cash flows?
Capital expenditures for the first nine months of 2025 were $5.7 billion, up from $5.2 billion in the same period of 2024, primarily for the oil and gas segment and CrownRock assets. Operating cash flow from continuing operations for the first nine months of 2025 was $7.9 billion. The company expects its cash on hand, operating cash flows, and available credit facilities to be sufficient to meet its obligations for the next 12 months.
06—Continue