In This Article:
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Operating Cash Flow: $3 billion before working capital in Q1 2025.
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Oil and Gas Production: Over 1.39 million BOE per day, at the midpoint of guidance.
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Domestic Operating Cost: $9.05 per BOE, below initial expectations.
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Permian Well Cost Reduction: More than 10% reduction compared to last year.
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Adjusted Profit: $0.87 per diluted share.
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Reported Profit: $0.77 per diluted share.
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Free Cash Flow: Approximately $1.2 billion before working capital.
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Unrestricted Cash: $2.6 billion at the end of Q1 2025.
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Debt Reduction: $2.3 billion retired year-to-date; $6.8 billion over the past 10 months.
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Interest Expense Reduction: $370 million annually from debt repayment.
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OxyChem Performance: $215 million on an adjusted basis.
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Midstream and Marketing Outperformance: Driven by strong gas marketing optimization in the Permian.
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Capital Guidance Reduction: Lowered by $200 million for the year.
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Operating Cost Savings: Estimated $150 million in 2025 OpEx savings.
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Occidental Petroleum Corp (NYSE:OXY) generated $3 billion in operating cash flow before working capital in the first quarter, showcasing strong financial performance.
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The company achieved a 15% improvement in drilling duration per well in the Permian, leading to a 10% reduction in unconventional well costs, surpassing their initial target.
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OXY is in advanced negotiations to extend the Block 53 contract in Oman by 15 years, potentially unlocking over 800 million gross barrels of additional resources.
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The midstream and marketing business outperformed expectations, driven by strong gas marketing optimization in the Permian.
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OxyChem delivered $215 million on an adjusted basis, overcoming operational challenges and extending its market leadership as a low-cost operator.
Negative Points
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The company faces heightened volatility and uncertainty in the macro environment, impacting commodity price stability.
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OXY's Gulf of America production guidance was revised down due to discretionary capital optimization, including deferring a development well into 2026.
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The company is experiencing elevated domestic operating expenses per BOE due to production mix shifts and maintenance activities.
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Uncertainty around global trade and economic conditions in China is impacting the chemical segment's pricing and demand.
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OXY is closely monitoring the evolving macro backdrop and may need to scale back activity if commodity prices weaken significantly.