Occidental Petroleum Corporation
Occidental Petroleum is a U.S.-based energy company organized around oil and gas exploration and production, chemical manufacturing through OxyChem, and midstream and marketing operations. Its portfolio also includes low-carbon ventures focused on carbon capture, utilization and storage and related emissions-reduction technologies.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueExploration, development and production of oil, condensate, NGLs and natural gas.
Gathering, processing, transportation, storage and marketing of hydrocarbons and CO2.
Manufacture and marketing of basic chemicals and vinyls through OxyChem.
Carbon management, CCS and direct air capture-related projects and partnerships.
Customers
Occidental sells primarily into commodity markets, so its direct customers include refiners, marketers, utilities, industrial users and other energy counterparties that buy crude oil, natural gas, NGLs and related services. OxyChem serves industrial customers that use basic chemicals and vinyls in manufacturing, construction and consumer supply chains. The midstream and marketing segment also serves third parties that need gathering, processing, transportation, storage and CO2 handling capacity.
Refiners, marketers and utilities that buy oil, condensate, NGLs and gas for processing or resale.
Manufacturers that buy basic chemicals and vinyls for downstream industrial applications.
Producers and third parties that use gathering, processing, transportation and storage capacity.
Industrial partners and emitters that may use CCS, DAC and related emissions-reduction services.
Strategy
Occidental’s strategy centers on maintaining its production base, allocating capital to high-return oil and gas and chemical assets, and using excess cash flow and divestiture proceeds to reduce debt. It also seeks to expand carbon management capabilities, including CCS and direct air capture, while preserving a sustainable dividend and operational flexibility. The mix is designed to support a large upstream base while building optionality in lower-carbon businesses.
Stable field performance supports reserve life, operating continuity and cash generation.
Lower debt improves financial flexibility and supports investment-grade metrics.
Capital discipline is intended to concentrate spending in assets with the best returns.
Carbon management and DAC can create new revenue streams and support emissions goals.
Geography
Occidental is headquartered in the United States and generates most of its revenue there, with additional exposure to international oil and gas markets. Its operations span major U.S. producing basins and selected international assets, so commodity pricing, transport differentials and tax regimes vary by geography. The company also has international production-sharing exposure, which affects realized prices and tax rates.
Risks
Occidental is highly exposed to commodity price volatility because most of its earnings depend on oil, NGL and natural gas realizations. Its carbon management initiatives, midstream partnerships and large operating footprint also create execution, regulatory, cyber and environmental liability risks. Credit ratings, debt levels and derivative or collateral requirements can further affect liquidity and capital access.
- Volatile oil, NGL and gas pricesImpact: CriticalLikelihood: Medium
Most revenue is tied to commodity realizations that are outside management control.
Exposure: Upstream and marketing segments
- Carbon management execution riskImpact: HighLikelihood: Medium
CCS and DAC projects require technology, permitting, incentives and counterparties to align.
Exposure: Low-carbon ventures
- Cybersecurity and digital infrastructure riskImpact: HighLikelihood: Medium
Operational technology and third-party systems can be disrupted by cyber attacks.
Exposure: Enterprise-wide operations
- Environmental and legal liabilitiesImpact: HighLikelihood: Medium
Oil and gas operations and chemical activities can create remediation, litigation and compliance exposure.
Exposure - Midstream spread and volume volatilityImpact: High
Marketing and transportation earnings depend on regional spreads and throughput.
Exposure: Midstream and marketing segment
Accounting
Judgemental itemsProduction volumes and acquisition-related basis affect depreciation, depletion and amortization expense.
Impact: Higher sales volumes and acquired assets can increase DD&A.
Proved properties are tested when prices, reserves or plans indicate possible non-recovery.
Impact: Commodity downturns can trigger non-cash impairment charges.
Long-lived energy assets require estimates for dismantlement and remediation costs.
Impact: Changes in estimates can materially affect liabilities and earnings.
Marketing and upstream revenue depend on realized prices and regional spreads.
Impact: Quarterly results can fluctuate sharply with WTI, Brent and gas spreads.
International income can be taxed at rates materially above U.S. rates.
Impact: Effective tax rate can move with geographic income mix and discrete items.
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Last updated: 24/09/2026