Occidental Petroleum Provides First Quarter 2025 Earnings Considerations

Occidental Petroleum Corporation has released preliminary insights into financial factors expected to influence its first-quarter 2025 earnings results. Management highlighted several key metrics without offering specific earnings estimates, noting that the information is subject to finalization.

Key Operational Data

Average diluted shares outstanding: 982.9 million

Oil Realized Prices (per barrel):

United States: $70.80

International: $72.59

Worldwide: $71.07

Natural Gas Liquids (NGL) Realized Prices (per barrel):

United States: $25.67

International: $27.85

Worldwide: $25.94

Natural Gas Realized Prices (per Mcf):

United States: $2.42

International: $1.90

Worldwide: $2.30

Benchmark Index Prices

WTI Oil: $71.42

Brent Oil: $74.89

NYMEX Gas: $3.62

Realizations as Percent of Benchmarks

Worldwide Oil to WTI: 100%

Worldwide Oil to Brent: 95%

Worldwide NGL to WTI: 36%

Domestic Natural Gas to NYMEX: 67%

Additional Commentary
The company cautioned that its summary may not reflect all financial outcomes or charges for the period and that actual results could vary materially due to market conditions, operational changes, and broader economic factors.

Potential impacts on performance include oil and gas price volatility, inflation, geopolitical instability, regulatory developments, production levels, and external disruptions.

Occidental reaffirmed its focus on long-term strategy, capital discipline, and cash flow optimization as part of its overall operational and financial outlook.

1PointFive Signs 25-Year CO₂ Sequestration Deal with CF Industries for Louisiana Project

1PointFive, a subsidiary of Occidental, has signed a 25-year agreement to sequester approximately 2.3 million metric tons of carbon dioxide annually from CF Industries’ upcoming Bluepoint low-carbon ammonia facility in Ascension Parish, Louisiana. The captured CO₂ will be securely transported and stored at 1PointFive’s Pelican Sequestration Hub, which has reached final investment decision and is currently under development.

The deal underscores the critical role of carbon sequestration in supporting large-scale low-carbon industrial projects. The Pelican Hub, located along the U.S. Gulf Coast, is designed to geologically store CO₂ more than a mile underground and will build on Occidental’s decades-long expertise in carbon management, with experience storing up to 20 million tons of CO₂ per year.

CF Industries CEO Tony Will emphasized that having a proven sequestration partner was essential for the Bluepoint project, which will contribute to reducing emissions while supporting economic growth and high-quality job creation.

1PointFive is focused on carbon capture, utilization, and sequestration (CCUS) technologies and aims to support the global goal of limiting warming to 1.5°C. The company’s broader portfolio includes Carbon Engineering’s direct air capture and AIR TO FUELS™ technology.

More information about 1PointFive’s initiatives is available at [1PointFive.com](https://www.1pointfive.com).

Occidental and 1PointFive Receive EPA Approval for CO₂ Sequestration at STRATOS DAC Facility

Occidental and its subsidiary 1PointFive have secured Class VI permits from the U.S. Environmental Protection Agency to sequester carbon dioxide at STRATOS, their Direct Air Capture (DAC) facility in Ector County, Texas. This marks the first time such permits have been issued for a DAC project and is a key step in launching commercial operations for what will be the world’s largest DAC facility.

Set to begin operations in 2025, STRATOS is designed to capture up to 500,000 tonnes of CO₂ annually. The EPA’s approval confirms that Occidental’s storage technologies and monitoring systems meet or exceed federal standards for underground injection. The project supports U.S. energy security and aims to help organizations reduce emissions or produce low-carbon fuels and products.

Occidental continues to position itself as a leader in carbon management, with STRATOS representing a major advance in scalable climate solutions. The development also reinforces the strategic importance of carbon capture infrastructure in transitioning to a lower-carbon economy.

Occidental Raises $893 Million Through Warrant Exercise Offer at Reduced Price

Occidental Petroleum announced the successful completion of its warrant exercise offer at a temporarily reduced price of $21.30 per warrant. The offer, which expired on March 31, resulted in the tendering of 41,941,075 warrants, including 69,166 under guaranteed delivery procedures. Excluding the guaranteed deliveries, Occidental will issue 41,871,909 shares of common stock and receive $891.9 million in proceeds. If all guaranteed deliveries are completed, the company will issue an additional 69,166 shares and collect another $1.5 million.

Untendered warrants remain valid at their original $22.00 exercise price. The initiative aimed to strengthen Occidental’s balance sheet while offering shareholders a temporary incentive to convert their warrants.

Occidental is a major energy company with a strong presence in U.S. oil and gas production and a growing low-carbon business through its Oxy Low Carbon Ventures. The company emphasized its continued focus on executing strategies that support long-term growth while advancing emissions-reduction technologies.

Occidental has reported its fourth-quarter 2024 financial results, highlighting progress in debt reduction, operational performance, and shareholder returns. The company completed its near-term debt repayment target of $4.5 billion and announced an additional $1.2 billion in planned divestitures for early 2025. Occidental also increased its quarterly dividend by 9% to $0.24 per share, payable in April.

Operationally, the company generated $3.6 billion in operating cash flow and $1.4 billion in free cash flow before working capital. Total production averaged 1,463 thousand barrels of oil equivalent per day, exceeding guidance expectations. The midstream, marketing, and chemical segments also outperformed income projections.

Occidental reported a net loss of $297 million for the quarter, or $0.32 per diluted share, while adjusted income stood at $792 million, or $0.80 per diluted share. The loss was primarily due to a $1.1 billion increase in long-term environmental liabilities following a federal court ruling, which the company is appealing.

The company’s oil and gas segment posted a pre-tax income of $1.2 billion. Crude oil prices saw a slight decline, with an average realized price of $69.73 per barrel, while domestic natural gas prices surged by 215% from the previous quarter.

Occidental ended 2024 with 4.6 billion barrels of oil equivalent in proved reserves, marking an increase from 4.0 billion BOE the previous year. The company’s all-in reserves replacement was 230%, with an organic reserves replacement of 112%, indicating strong long-term sustainability.

The chemicals division (OxyChem) delivered a pre-tax income of $270 million, outperforming expectations despite lower polyvinyl chloride pricing and seasonal demand declines. The midstream and marketing segment recorded a pre-tax loss of $134 million, partly due to net derivative losses.

Occidental reaffirmed its commitment to financial discipline and long-term growth, emphasizing operational efficiency and strategic capital allocation.