Occidental Petroleum Reports $6.8 Billion in Net Sales and $766 Million Net Income for Q1 2025

Occidental Petroleum Corporation reported a significant increase in financial performance for the first quarter of 2025, with net sales reaching $6.8 billion, up from $6.0 billion in the same period last year. The company’s net income attributable to common stockholders was $766 million, or $0.77 per diluted share, compared to $718 million, or $0.75 per diluted share, in the first quarter of 2024. This growth was primarily driven by higher sales volumes and increased domestic natural gas prices, despite lower oil prices impacting the oil and gas segment.

In comparison to the previous quarter, Occidental's net income increased from a loss of $297 million in the fourth quarter of 2024, reflecting a recovery in operational performance. The oil and gas segment reported earnings of $1.7 billion, up from $1.2 billion in the prior quarter, attributed to higher domestic prices across all products, although this was partially offset by lower sales volumes. The chemical segment's earnings decreased to $185 million from $270 million, primarily due to lower realized prices for caustic soda and polyvinyl chloride.

Strategically, Occidental has made notable advancements, including the completion of the CrownRock acquisition, which has enhanced its asset base and production capabilities. The company also divested non-core assets, generating approximately $1.3 billion in cash, which was utilized to reduce debt. As of March 31, 2025, Occidental's long-term debt stood at $24.0 billion, down from $24.4 billion at the end of 2024, reflecting ongoing efforts to manage leverage and improve financial stability.

Operationally, Occidental reported an increase in average daily sales volumes, particularly in the oil and gas segment, which benefited from the CrownRock acquisition. The company’s total assets were valued at $84.97 billion, with cash and cash equivalents amounting to $2.6 billion. The firm continues to focus on enhancing its production base while prioritizing sustainability and carbon management initiatives, including the development of its direct air capture technology.

Looking ahead, Occidental anticipates that its financial performance will remain closely tied to fluctuations in oil and gas prices, as well as macroeconomic conditions. The company is committed to maintaining a sustainable dividend and reducing its debt levels, with a target of bringing principal debt below $15 billion. Occidental is also monitoring ongoing geopolitical developments and trade negotiations that could impact its operations and financial outlook.