OCCIDENTAL PETROLEUM CORP /DE/

Occidental Petroleum Corporation is an international energy company with premier diversified assets primarily situated in the United States, the Middle East and North Africa. The Company ranks among the largest oil and gas producers in the U.S., holding leading positions in the Permian and DJ Basins as well as offshore Gulf of America, and is the largest independent oil producer in Oman. Its midstream and marketing segment ensures flow assurance and optimizes the value of oil and gas operations, while Oxy Low Carbon Ventures focuses on advancing innovative decarbonization technologies and solutions including direct air capture, carbon sequestration and lithium development.

The Company competes with public, private, and state-owned producers in both domestic and international markets. The Company's expertise in CO2 separation, transportation, utilization, recycling and storage for EOR provides a competitive edge as the energy sector transitions toward lower carbon intensity products. The midstream and marketing businesses operate in competitive and highly regulated markets, competing for capacity and infrastructure for gathering, processing, transportation, storage and delivery of products. OLCV and its businesses and investees also face a broad range of competitors in nascent markets for low-carbon products and CO2 removal credits.

The Company generates revenue through two reporting segments: oil and gas and midstream and marketing. The oil and gas segment explores for, develops and produces oil, NGL and natural gas. The midstream and marketing segment purchases, markets, gathers, processes, transports and stores oil, NGL, natural gas, CO2 and power, optimizes its transportation and storage capacity, and invests in entities that conduct similar activities, such as WES. The midstream and marketing segment also includes OLCV, which seeks to leverage the Company's carbon management experience to develop CCUS projects and invest in other low-carbon technologies.

The oil and gas segment's operations are primarily located in the United States, the Middle East and North Africa. Within the United States, the Company has operations primarily in Texas, New Mexico and Colorado, as well as offshore in the Gulf of America. International assets are primarily located in Algeria, Oman, Qatar and the UAE. In 2025, the Company's total production was 1,434 Mboe/d ¹. The Company had proved reserves from continuing operations at year-end 2025 of 4,603 MMboe ². The midstream and marketing segment operates or contracts for services on gathering systems, gas plants and storage facilities and invests in entities such as WES and DEL. The segment also includes OLCV, which is developing STRATOS, the Company's first large-scale DAC facility designed to capture up to 500,000 tons of CO2 per annum once complete ³. The Company owns a 40.3% interest in NET Power Inc. ⁴.

In October 2025, the Company announced entry into a purchase and sale agreement with Berkshire Hathaway to sell all of the issued and outstanding equity interests in OxyChem in an all-cash transaction for $9.7 billion ⁵, which closed on January 2, 2026, resulting in an estimated gain of $3.2 billion ⁶, net of taxes. In 2025, the Company used proceeds from divestitures and cash on hand to repay approximately $4.0 billion of debt ⁷. Subsequent to December 31, 2025, the Company used proceeds from the OxyChem Transaction to pay or satisfy and discharge an additional $5.4 billion of debt ⁸. As of the date of this filing, the principal debt outstanding was approximately $15 billion ⁹. The Company declared dividends of $0.96 per share in 2025 ¹⁰. As of December 31, 2025, $1.2 billion ¹¹ remained of the Company's $3.0 billion share repurchase program ¹².

Net sales for 2025 were $21.593 billion ¹³, compared to $22.019 billion ¹⁴ in 2024. Net income attributable to common stockholders was $1.647 billion ¹⁵ in 2025, compared to $2.377 billion ¹⁶ in 2024. Diluted EPS from continuing operations was $1.35 ¹⁷ in 2025 versus $2.23 ¹⁸ in 2024. Cash flow provided by operating activities from continuing operations was $9.606 billion ¹⁹ in 2025, compared to $10.519 billion ²⁰ in 2024. Capital expenditures in 2025 were $6.427 billion ²¹, primarily related to continued development in the oil and gas segment.

The Company's planned 2026 capital expenditures are between $5.5 billion and $5.9 billion ²². The Company's shareholder return priorities are to continue to provide a sustainable and growing dividend and further reduce principal debt to approximately $14.3 billion ²³. Available cash will be allocated, as appropriate, to opportunistic share repurchases and/or further debt reduction.

The Company is focused on advancing integrated technologies in CO2, power and midstream to enable differentiated resource recovery and value. The Company's low-carbon business strategy includes the development of STRATOS, its first large-scale DAC facility in Ector County, Texas, which is designed to capture up to 500,000 tons of CO2 per annum once complete ²⁴. Operations are expected to begin in 2026, with an initial capacity of up to 250,000 tons of CO2 per annum from trains 1 and 2 ²⁵, with the remaining 250,000 tons of capacity upon completion of trains 3 and 4 ²⁶. The Company also has five CO2 sequestration hubs under development over 310,000 acres ²⁷.

The Company's oil and gas segment focuses on long-term value creation through key performance indicators of total spend per barrel, field operability, daily production, and HSE and sustainability initiatives. The Company's Permian EOR business has 1.4 million net acres with a large inventory of future CO2 projects, which could be developed over the next 20 years or accelerated, depending on market conditions ²⁸. The Company's Gulf of America operations will conduct both development and exploration activities in 2026 using two floating drill ships and several other well service vessels and will continue to develop and expand its extensive portfolio of lease working interests through its GOA 2.0 program.

The Company's costs are influenced by inflationary trends, market conditions, the availability and cost of oilfield services, electricity, and CO2, and other operational expenditures. The Company works to manage inflation impacts by capitalizing on operational efficiencies, locking in pricing on longer-term contracts and working closely with vendors to secure the supply of critical materials. The Company's objective is to deliver its free cash flow needs without impacting operational performance.

In 2025, the Company invested $5.6 billion in high-return oil and gas assets ²⁹ and $0.7 billion in the midstream and marketing segment before contributions from noncontrolling interest ³⁰, primarily related to STRATOS. The Company's planned 2026 capital expenditures are between $5.5 billion and $5.9 billion ³¹. As of December 31, 2025, $1.2 billion ³² remained of the Company's $3.0 billion share repurchase program ³³. On February 18, 2026, the Board of Directors declared a regular quarterly dividend of $0.26 per share on common stock, over an 8% increase from the previous quarter ³⁴.

Oil prices have been and are expected to remain volatile due to shifts in energy supply and demand, ongoing geopolitical factors and OPEC supply actions. In 2025, compared to 2024, the average annual WTI price per barrel decreased to $64.81 from $75.72 ³⁵, and the average annual Brent price per barrel decreased to $68.18 from $79.79 ³⁶. In April 2025, a U.S. tariff policy was announced that imposed a 10% base tariff rate on most imports ³⁷, with higher rates applied to certain countries. These tariffs may increase the Company's supplier costs and affect demand and prices for its products.

The Company's carbon management and sustainability initiatives and strategic objectives involve significant risks and uncertainties. The Company's aspirations, goals, initiatives and investments related to carbon management, DAC and sustainability expose it to significant financial, operational, regulatory, technological, legal, market, reputational and other risks. The Company's results of operations depend on the extent to which it can execute new business strategies effectively, particularly in the context of climate-related policies that seek to lower carbon intensity, and evolving laws, regulations and government and private actions regarding the environment and climate change.

The Company's financial results correlate closely to the prices it obtains for its products, particularly oil and, to a lesser extent, NGL and natural gas. With the completion of the OxyChem Transaction, the Company's business is more exposed to fluctuations in the markets for oil, NGL and natural gas. The Company may be required to repay the $881 million ³⁸ tentative cash tax refund Anadarko received in 2016, plus other related cash tax benefits received, plus applicable interest, which as of December 31, 2025, totaled approximately $2.3 billion ³⁹, if the U.S. Tax Court determines that Anadarko's $5.2 billion ⁴⁰ Tronox settlement payment is not deductible. The Company's level of indebtedness may make it more vulnerable to adverse changes in general economic or industry conditions and could limit the Company's ability to respond to changing business conditions. The Company's operations, both onshore and offshore, face risks and hazards inherent to operating in the energy industry, including well blowouts, fires, explosions, pipeline ruptures, spills, and severe weather events. The Company's carbon management and sustainability initiatives involve significant risks and uncertainties, including the successful implementation of new and existing technologies on a commercial scale, such as the deployment of DAC technology and start-up operations at STRATOS.

Management's message emphasizes a focus on delivering a unique shareholder value proposition with its portfolio of oil and gas and midstream and marketing assets, as well as its ongoing development of carbon management and storage solutions and GHG emissions reduction efforts. The strategic priorities for the period ahead include maintaining the production base to preserve asset base integrity and longevity, delivering a sustainable and growing dividend, and prioritizing excess cash flow and proceeds from divestitures, including the OxyChem Transaction, for deleveraging until principal debt is approximately $14.3 billion ⁴¹, after which available cash will be allocated to opportunistic share repurchases and/or further net debt reduction. The Company also aims to enhance its asset base with investments in its cash-generative oil and gas business and advance integrated technologies in CO2, power and midstream to enable differentiated resource recovery and value.