01—Abstract
Summary
Summary of the 8-K filed January 20, 2026. Cited figures are marked; the original filing is the authoritative source.
Occidental Petroleum (OXY) furnished a preliminary summary of factors expected to affect its fourth quarter 2025 results, filed under Item 2.02 with Exhibit 99.1.
The document is not an earnings estimate. Management states that it is not comprehensive, may not capture all adjustments and charges, and remains subject to finalization of the Q4 2025 financial reporting process. Investors should treat it as a partial guide to reported results, not a full earnings release.
The most structural change is the completed sale of Occidental Chemical Corporation (OxyChem) on January 2, 2026. Beginning with the 2025 Form 10-K, OxyChem's results and cash flows will be presented as discontinued operations for all periods shown, so continuing-operations results will reflect the oil and gas business on a restated basis. Management expects the Q4 2025 adjusted effective tax rate to be 35%a to 37% for continuing operations and 24% to 26% for discontinued operations.
Average diluted shares for the quarter were 1,002.9 million. The realizations table provides the commodity backdrop for the quarter. Worldwide realized oil averaged $58.99b/Bbl, equal to 100% of average WTI ($59.14) and 94% of average Brent ($63.09).
Worldwide NGL realized $16.66c/Bbl, about 28% of WTI, and domestic natural gas realized $1.12/Mcf, about 31% of NYMEX ($3.61/Mcf). The gap between domestic gas and NYMEX, and between NGL and WTI, is a key area for investors to monitor.
02—Key points
Key Highlights
- OxyChem sale closed January 2, 2026; its results will be reported as discontinued operations for all periods presented starting with the 2025 Form 10-K.
- Q4 2025 adjusted effective tax rate expected at 35%-37% for continuing operations and 24%-26% for discontinued operations.
- Average diluted shares outstanding for Q4 2025 were 1,002.9 million.
- Worldwide realized oil price of $58.99/Bbl (US $58.01, International $64.68), roughly 100% of average WTI and 94% of average Brent.
- Worldwide realized NGL price of $16.66/Bbl, about 28% of average WTI; domestic natural gas realized $1.12/Mcf, about 31% of average NYMEX.
- Filing explicitly states it is preliminary, not comprehensive, and not an estimate of Q4 2025 earnings; final results may include additional adjustments and charges.
- Information is furnished, not filed, under Section 18 of the Exchange Act, so it is not subject to the liability framework for filed reports.
03—Questions
Frequently Asked Questions
Does this filing provide Occidental's Q4 2025 earnings?
No. The document lists factors management believes will affect Q4 2025 results and states it is not an estimate of Q4 2025 earnings. Final results will come in the separate earnings release and Form 10-K, subject to completion of the financial close process.
How does the OxyChem sale change the way results are reported?
OxyChem was sold on January 2, 2026. Its operations and cash flows will be shown as discontinued operations for all periods presented, starting with the 2025 Form 10-K. Continuing-operations results will therefore exclude the chemicals business, which makes historical comparisons with prior reports less direct.
Why are the tax rates for continuing and discontinued operations so different?
Management expects a 35%-37% adjusted effective tax rate on continuing operations and a lower 24%-26% rate on discontinued operations. The filing does not explain the drivers of this gap. Investors should review the 10-K tax footnote for the underlying components.
How did Occidental's realized prices compare with benchmark prices in Q4 2025?
Worldwide oil realized about 100% of WTI and 94% of Brent, with the lower Brent percentage reflecting the typical differential. NGL realized only about 28% of WTI and domestic natural gas about 31% of NYMEX, indicating substantial discounts on these products. Investors often watch these ratios to gauge marketing and basis exposure.
04—Continue