01—Abstract
Summary
Summary of the 8-K filed July 14, 2025. Cited figures are marked; the original filing is the authoritative source.
Occidental Petroleum (OXY) filed an 8-K on July 14, 2025 furnishing preliminary "Earnings Considerations" for the second quarter of 2025.
The company said it is not providing an earnings estimate. The update highlights a production shortfall in the Gulf of America and a higher expected adjusted effective tax rate, while total company production is still expected to fall within guidance. The material is furnished under Item 2.02 rather than filed, so it is not subject to Section 18 liability and is not incorporated into Securities Act filings unless specifically referenced.
The main operational item is the Gulf of America. Sales volumes are estimated at 125 Mboed for the quarter because of third-party infrastructure constraints, extended facility maintenance, and schedule delays. Management said total company production should remain within guidance, which suggests other regions are offsetting the Gulf of America shortfall.
On the tax side, the adjusted effective tax rate is expected to be 35-37%. Management attributes this to a shift in the jurisdictional mix of income caused by lower anticipated full-year oil prices than originally expected. The realized price data show worldwide oil at $63.76a/Bbl, roughly in line with the average WTI price of $63.74/Bbl and about 96% of the average Brent price of $66.59/Bbl.
Worldwide NGL realizations were $20.71b/Bbl (about 32% of WTI), and domestic natural gas realized $1.33/Mcf, roughly 36% of the average NYMEX price of $3.68/Mcf. Average diluted shares outstanding were 1,010.4 million. The company cautions that these figures are preliminary, may not capture all adjustments, and are subject to finalization of its Q2 2025 financial close.
02—Key points
Key Highlights
- Gulf of America sales volumes for Q2 2025 are estimated at 125 Mboed, reduced by third-party constraints, extended maintenance, and schedule delays.
- Total company production is expected to remain within guidance for the quarter despite the Gulf of America curtailments.
- Adjusted effective tax rate is expected to be 35-37%, reflecting a shift in the jurisdictional mix of income tied to lower expected full-year oil prices.
- Worldwide realized oil price was $63.76/Bbl (US $62.83, International $68.88), about 100% of average WTI and 96% of average Brent.
- Worldwide realized NGL price was $20.71/Bbl, about 32% of WTI; domestic natural gas realized $1.33/Mcf, about 36% of NYMEX ($3.68/Mcf).
- Average diluted shares outstanding for Q2 2025 were 1,010.4 million.
- The information is preliminary, is not an earnings estimate, and is furnished (not filed) under Item 2.02 as Exhibit 99.1.
03—Questions
Frequently Asked Questions
Did Occidental provide its Q2 2025 earnings or an EPS estimate in this filing?
No. The filing explicitly states that the Earnings Considerations are not an estimate of Q2 2025 earnings. They cover only selected factors management believes will affect results, and the company notes they may not include all adjustments and remain subject to its financial close.
Why are Gulf of America volumes lower, and does this affect total production?
Gulf of America sales volumes are estimated at 125 Mboed due to third-party constraints, extended facility maintenance, and schedule-related delays. Management still expects total company production to remain within its guidance range for the quarter, indicating the shortfall is not expected to push overall output outside guidance.
Why is the adjusted effective tax rate expected to be higher?
The expected 35-37% adjusted effective tax rate reflects a change in the mix of income across tax jurisdictions. Management ties this to lower anticipated full-year oil prices compared with original expectations, which shifts income toward jurisdictions with higher tax rates.
How did realized prices compare with market benchmarks in Q2 2025?
Worldwide realized oil was $63.76/Bbl, roughly equal to the average WTI price of $63.74/Bbl and about 96% of the average Brent price of $66.59/Bbl. Worldwide NGL realized about 32% of WTI, and domestic natural gas realized about 36% of the NYMEX average. International oil realized $68.88/Bbl, above the U.S. figure of $62.83/Bbl.
Is the information in this 8-K considered legally filed?
No. Item 2.02 states the information is furnished, not filed, for purposes of Section 18 of the Exchange Act. It is not incorporated into Securities Act or Exchange Act filings unless a later filing expressly refers to it. The filing also includes standard forward-looking statement cautions referencing the company's 2024 Form 10-K and other SEC filings.
04—Continue