# Occidental Petroleum Corporation

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/en/companies/Occidental Petroleum Corporation).

## Overview

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.

## Products & services

• Crude oil, condensate, NGLs and natural gas production
• Basic chemicals and vinyls through OxyChem
• Oil, gas, CO2 and power gathering, processing and marketing
• Carbon capture, utilization and storage projects
• Direct air capture and other low-carbon technologies

- **Oil and gas** (80%) — Exploration, development and production of oil, condensate, NGLs and natural gas.
- **Midstream and marketing** (12%) — Gathering, processing, transportation, storage and marketing of hydrocarbons and CO2.
- **Chemical** (7%) — Manufacture and marketing of basic chemicals and vinyls through OxyChem.
- **Low-carbon ventures** (1%) — Carbon management, CCS and direct air capture-related projects and partnerships.

- Crude oil, condensate, NGLs and natural gas production
- Basic chemicals and vinyls through OxyChem
- Oil, gas, CO2 and power gathering, processing and marketing
- Carbon capture, utilization and storage projects
- Direct air capture and other low-carbon technologies

## 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.

- **Upstream commodity buyers** (primary) — Refiners, marketers and utilities that buy oil, condensate, NGLs and gas for processing or resale.
- **Industrial chemical customers** (secondary) — Manufacturers that buy basic chemicals and vinyls for downstream industrial applications.
- **Midstream and infrastructure users** (secondary) — Producers and third parties that use gathering, processing, transportation and storage capacity.
- **Carbon management counterparties** (emerging) — Industrial partners and emitters that may use CCS, DAC and related emissions-reduction services.

- Refiners and crude marketers buying oil and condensate
- Utilities and gas marketers purchasing natural gas and NGLs
- Industrial customers buying basic chemicals and vinyls
- Midstream counterparties using gathering, transport and storage
- Third parties seeking CO2 handling and carbon management services

## 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.

- **United States** (84%) — Estimated from disclosed U.S. and international revenue tables.
- **International** (16%) — Estimated from disclosed U.S. and international revenue tables.

- United States is the core revenue base and operating center
- International oil and gas assets add exposure to non-U.S. pricing
- Permian Basin is a key U.S. producing area
- Midstream assets connect domestic production to Gulf Coast markets
- International tax rates can be materially higher than U.S. rates

## 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.

- **Maintain and optimize the production base** (short-term) — Stable field performance supports reserve life, operating continuity and cash generation.
- **Reduce leverage through cash flow and asset sales** (short-term) — Lower debt improves financial flexibility and supports investment-grade metrics.
- **Invest in cash-generative core assets** (medium-term) — Capital discipline is intended to concentrate spending in assets with the best returns.
- **Build low-carbon optionality** (long-term) — Carbon management and DAC can create new revenue streams and support emissions goals.

- Maintain production base and preserve asset longevity
- Direct capital to high-return oil, gas and chemical assets
- Use excess cash flow and divestiture proceeds to delever
- Support a sustainable and growing dividend
- Advance CCS, DAC and other low-carbon technologies

## 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 prices** [critical] — Most revenue is tied to commodity realizations that are outside management control.
- **Midstream spread and volume volatility** [high] — Marketing and transportation earnings depend on regional spreads and throughput.
- **Carbon management execution risk** [high] — CCS and DAC projects require technology, permitting, incentives and counterparties to align.
- **Cybersecurity and digital infrastructure risk** [high] — Operational technology and third-party systems can be disrupted by cyber attacks.
- **Environmental and legal liabilities** [high] — Oil and gas operations and chemical activities can create remediation, litigation and compliance exposure.

- Commodity price swings directly affect upstream and marketing results
- Midstream margins depend on spreads, volumes and third-party activity
- Carbon management projects face technology and policy uncertainty
- Cybersecurity incidents could disrupt operations and expose data
- Debt ratings and collateral needs can affect financing flexibility

## Accounting

Occidental’s reported results are heavily influenced by depletion, depreciation and amortization, reserve-based impairment testing and estimates for asset retirement obligations and environmental reserves. Revenue and earnings also move with commodity price realizations, production volumes, spread-based marketing margins and the timing of asset sales or legal settlements. Tax expense can vary materially with the geographic mix of income because international earnings may be taxed at much higher statutory rates than U.S. earnings.

- **DD&A and reserve depletion** — Higher sales volumes and acquired assets can increase DD&A.
- **Oil and gas property impairment** — Commodity downturns can trigger non-cash impairment charges.
- **Asset retirement obligations and environmental reserves** — Changes in estimates can materially affect liabilities and earnings.
- **Commodity price and spread sensitivity** — Quarterly results can fluctuate sharply with WTI, Brent and gas spreads.
- **Income taxes by jurisdiction** — Effective tax rate can move with geographic income mix and discrete items.

- DD&A depends on production volumes, reserve lives and acquisition accounting
- Oil and gas impairment tests rely on commodity price and reserve assumptions
- ARO and environmental reserves require judgment on future remediation costs
- Commodity-linked revenue and marketing margins can be volatile quarter to quarter
- Tax rates vary with the mix of U.S. and international pre-tax income

---

*Last updated: 2026-09-24T11:11:10.333993+00:00*