Occidental Petroleum delivered higher-than-expected earnings per share in Q4 2024 despite revenue falling slightly short of projections.
Occidental Petroleum (OXY 1.62%), an integrated oil and gas company, announced its fourth-quarter 2024 earnings on Feb. 18, 2025. The company reported adjusted EPS of $0.80, exceeding the market expectation of $0.68 by 17.6%. Revenue came in at $6.8 billion, slightly below analyst estimates of $6.9 billion.
| Metric | Q4 2024 | Q4 Estimate | Q4 2023 | Y/Y Change |
|---|---|---|---|---|
| Adjusted EPS | $0.80 | $0.68 | $0.74 | +8.1% |
| Revenue ($ Millions) | $6,837 | $6,978 | $7,529 | -9% |
| Operating Cash Flow | $3,556M | – | $3,239M | +9.8% |
| Worldwide Production (MBOE/D) | 1,463 | – | 1,234 | +18.5% |
Source: Analyst estimates for the quarter provided by FactSet.
Occidental Petroleum, a producer of oil, gas, and chemicals, operates with a significant focus on exploration, development, and manufacturing. Based in the United States, with operations extending to the Middle East and Latin America, its business revolves around hydrocarbon production and chemical manufacturing. A cornerstone of its strategy is oil and gas production efficiency, complemented by a robust competitive strategy in chemical segments. Occidental aims to sustain profitable operations through cost-effective production and strategic market positioning.
Recently, Occidental has concentrated on carbon management initiatives, investing in carbon capture, utilization, and storage (CCUS) technologies. This aligns with its goals to reduce greenhouse gas emissions.
Quarterly Highlights
During Q4 2024, Occidental displayed solid performance in key areas. Notably, it achieved a production rate of 1,463 thousand barrels of oil equivalent per day, reflecting an 18.5% increase from the previous year. This performance was driven by substantial outputs in the Permian Basin and Rocky Mountains.
The company’s chemical segment, branded as OxyChem, reported a pre-tax income of $270 million despite facing pressure from falling PVC (Polyvinyl chloride) prices.
In the midstream and marketing segment, Occidental saw a pre-tax loss of $134 million. This was primarily attributable to net derivative losses.
The company continues to prioritize its deleveraging strategy. It repaid $4.5 billion of debt, aligning with its focus on maintaining financial stability and reducing interest liabilities. Additionally, Occidental confirmed its commitment to addressing climate change challenges through its strategic investments in low-carbon technologies.
Future Outlook
Occidental’s management is bullish on the outlook, driven by disciplined capital allocation and debt reduction strategies. Looking ahead, Occidental plans to remain attentive to global energy market dynamics, emphasizing its intention to leverage carbon management projects and innovative recovery techniques to secure long-term stability.
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