Why was there a large gap between Q4 reported and adjusted earnings?

The $383 million difference between reported net loss of $68 million and adjusted income of $315 million is mainly due to charges and transaction costs tied to the OxyChem sale. In the schedules, discontinued operations contributed a $260 million after-tax charge in Q4, and other items included asset impairments in Midstream & Marketing and early retirement costs.

How much debt has Occidental paid down, and what is the balance sheet now?

Occidental reports that debt has fallen by $5.8 billion since mid-December 2025 and that principal debt is now $15.0 billion. Q4 year-end balance sheet data shows long-term debt, net of $20.6 billion plus current maturities of $1.8 billion, with the difference reflecting the timing of the sale closing and the presentation of held-for-sale amounts.

Will the dividend increase continue, and what is the payout?

The board increased the quarterly dividend by more than 8% to $0.26 per share, payable April 15, 2026, to holders of record as of March 10, 2026. The company notes the quarterly dividend has doubled over the last four years. Annualized, that is about $1.04 per share, though future increases are not guaranteed in this filing.

How did commodity price declines affect Q4 results?

Lower realized prices were the main driver of weaker oil and gas results. Worldwide oil realizations fell 9% to $59.22/bbl, NGL realizations fell 15% to $16.68/bbl, and domestic gas fell 24% to $1.12/Mcf. Oil and gas pre-tax income declined to $0.7 billion from $1.3 billion in Q3, excluding items affecting comparability.

Did production and reserves hold up despite the portfolio change?

Yes. Q4 production of 1,481 Mboed exceeded guidance by 21 Mboed, with the Permian and Rockies leading. Full-year 2025 proved reserves were 4.6 billion BOE, with 340 million BOE of extensions and discoveries mainly in the Permian. The 2025 organic reserve replacement ratio was 107%, though the all-in ratio of 98% was lower because of property divestitures and sales.

OXY/OXY-WT 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed February 18, 2026. Cited figures are marked; the original filing is the authoritative source.

Occidental's Q4 2025 results, furnished under Item 2.02, centered on the completed sale of OxyChem on January 2, 2026, which reduced debt by $5.8 billion^a since mid-December 2025 and brought principal debt to $15.0 billion.

Reported Q4 results were a net loss attributable to common stockholders of $68 million^b ($0.07 per diluted share), driven largely by charges and transaction costs tied to the OxyChem sale. Adjusted income was $315 million ($0.31 per diluted share), and full-year 2025 adjusted EPS was $2.21 versus reported EPS of $1.61. OxyChem results are now presented as discontinued operations for all periods.

Operationally, the quarter was strong. Worldwide production of 1,481 Mboed beat the guidance midpoint by 21 Mboed, led by the Permian and Rockies, and midstream and marketing pre-tax adjusted income exceeded the high end of guidance. Operating cash flow before working capital was $2.7 billion^c and quarterly free cash flow before working capital was $1.0 billion.

The headwind was pricing: realized oil fell 9% sequentially to $59.22^d/bbl and domestic gas fell 24%, which pulled oil and gas pre-tax income down to $0.7 billion from $1.3 billion in Q3. Capital-allocation signals are constructive.

The quarterly dividend rises more than 8% to $0.26 per share, payable April 15, 2026, and year-end proved reserves were 4.6 billion BOE with an all-in replacement ratio of 98% and a three-year average of 154%. Investors should weigh the deleveraging and dividend increase against commodity-price sensitivity, since realized prices fell sharply in Q4 and the company's forward price outlook is not quantified in this filing.

02—Key points

Key Highlights

OxyChem sale closed January 2, 2026; debt reduced by $5.8 billion since mid-December 2025, bringing principal debt to $15.0 billion
Q4 2025 reported net loss of $68 million ($0.07/diluted share) vs. adjusted income of $315 million ($0.31/diluted share), with the gap mainly from OxyChem sale charges and transaction costs
Quarterly dividend raised more than 8% to $0.26/share (payable April 15, 2026); dividend has doubled over four years
Q4 total production of 1,481 Mboed beat the guidance midpoint by 21 Mboed, led by the Permian and Rockies; midstream adjusted pre-tax income exceeded the high end of guidance
Q4 operating cash flow of $2.6 billion; operating cash flow before working capital of $2.7 billion; free cash flow before working capital of $1.0 billion
Realized prices weakened in Q4: worldwide oil $59.22/bbl (down 9% QoQ), NGLs $16.68/bbl (down 15%), domestic gas $1.12/Mcf (down 24%), cutting oil and gas pre-tax income to $0.7 billion from $1.3 billion
Year-end 2025 proved reserves of 4.6 billion BOE; all-in replacement ratio of 98% for 2025 (three-year average 154%) and organic replacement ratio of 107%

03—Questions

Frequently Asked Questions

Why was there a large gap between Q4 reported and adjusted earnings?
The $383 million difference between reported net loss of $68 million and adjusted income of $315 million is mainly due to charges and transaction costs tied to the OxyChem sale. In the schedules, discontinued operations contributed a $260 million after-tax charge in Q4, and other items included asset impairments in Midstream & Marketing and early retirement costs.
How much debt has Occidental paid down, and what is the balance sheet now?
Occidental reports that debt has fallen by $5.8 billion since mid-December 2025 and that principal debt is now $15.0 billion. Q4 year-end balance sheet data shows long-term debt, net of $20.6 billion plus current maturities of $1.8 billion, with the difference reflecting the timing of the sale closing and the presentation of held-for-sale amounts.
Will the dividend increase continue, and what is the payout?
The board increased the quarterly dividend by more than 8% to $0.26 per share, payable April 15, 2026, to holders of record as of March 10, 2026. The company notes the quarterly dividend has doubled over the last four years. Annualized, that is about $1.04 per share, though future increases are not guaranteed in this filing.
How did commodity price declines affect Q4 results?
Lower realized prices were the main driver of weaker oil and gas results. Worldwide oil realizations fell 9% to $59.22/bbl, NGL realizations fell 15% to $16.68/bbl, and domestic gas fell 24% to $1.12/Mcf. Oil and gas pre-tax income declined to $0.7 billion from $1.3 billion in Q3, excluding items affecting comparability.
Did production and reserves hold up despite the portfolio change?
Yes. Q4 production of 1,481 Mboed exceeded guidance by 21 Mboed, with the Permian and Rockies leading. Full-year 2025 proved reserves were 4.6 billion BOE, with 340 million BOE of extensions and discoveries mainly in the Permian. The 2025 organic reserve replacement ratio was 107%, though the all-in ratio of 98% was lower because of property divestitures and sales.

04—Continue

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