I analyze oil and gas companies like Occidental Petroleum and related companies in my service, Oil & Gas Value Research, where I look for undervalued names in the oil and gas space. I break down everything you need to know about these companies -- the balance sheet, competitive position and development prospects. This article is an example of what I do. But for Oil & Gas Value Research members, they get it first, and they get analysis on some companies that is not published on the free site. Interested? Sig ...

Core Viewpoint - Berkshire Hathaway has invested nearly $280 billion into publicly traded companies, with Occidental Petroleum being one of its top holdings, representing 3.9% of its portfolio [1][2] Group 1: Occidental Petroleum's Financial Performance - Occidental Petroleum reported an average production of nearly 1.4 million barrels of oil equivalent (BOE) per day in Q1, generating $3 billion in operating cash flow and $1.2 billion in free cash flow [4] - The company increased its quarterly dividend by 9% earlier this year, utilizing strong free cash flow for this purpose while retaining the rest to repay debt [5] - Occidental has repaid $2.3 billion of debt so far this year and has exceeded its target by repaying $6.8 billion since Q3 of last year [5] Group 2: Debt Management and Future Outlook - The company has significantly reduced its debt, which has lowered interest expenses and positioned it to better handle fluctuations in oil prices [6] - Occidental aims to reduce its principal debt balance below $15 billion, with a long-term debt balance of over $24 billion at the end of Q1 [7] - Starting in 2026, Occidental expects a significant boost in free cash flow from non-oil and gas sources, projecting an additional $1 billion in 2026 and $500 million in 2027 [8] Group 3: Investment Rationale - The investment by Berkshire Hathaway in Occidental Petroleum is driven by the company's potential for value creation through debt reduction and free cash flow growth from its non-oil businesses [9] - These factors are expected to enhance shareholder value even in a volatile oil market, making Occidental a resilient investment choice [9]

Occidental Petroleum’s NYSE: OXY stock price correction hit bottom in April, and the rebound gained momentum in May after a solid earnings beat. Headwinds exist for this and other energy companies, but their leaning into increased production and operational quality is paying off. The Q1 results highlight this company’s efficiency efforts and indicate that gains will be sticky and cash flow will remain robust.  Occidental Petroleum TodayOXYOccidental Petroleum$41.43 +2.42 (+6.20%) 52-Week Range$34.79▼$64.76 ...

Financial Data and Key Metrics Changes - The company generated an adjusted profit of $0.87 per diluted share and a reported profit of $0.77 per diluted share in Q1 2025, with a significant difference attributed to the mark-to-market impact of derivatives [20][21] - Operating cash flow before working capital reached $3 billion, while free cash flow before working capital was approximately $1.2 billion [5][20] - The company exited Q1 2025 with $2.6 billion of unrestricted cash [20] Business Line Data and Key Metrics Changes - The oil and gas business produced over 1,390,000 BOE per day, aligning with production guidance [5][6] - Domestic oil and gas operating costs were reported at $9.5 per BOE, significantly below initial expectations [6] - OxyChem delivered $215 million on an adjusted basis, overcoming operational challenges [11] Market Data and Key Metrics Changes - The company expects total production to grow from Q1 to the second half of the year, driven by activities in the Middle East and Gulf of America [9][22] - The midstream and marketing business outperformed expectations, benefiting from strong gas marketing optimization [12] Company Strategy and Development Direction - The company is focused on debt reduction, having retired $2.3 billion in debt year-to-date, with a total of $6.8 billion repaid over the past ten months [15][26] - The company is negotiating to extend the Block 53 contract in Oman by 15 years, which could unlock over 800 million gross barrels of additional resources [10][62] - The company aims to maintain operational efficiency and flexibility in response to market volatility, with a focus on preserving value through disciplined capital allocation [19][30] Management's Comments on Operating Environment and Future Outlook - Management highlighted uncertainty around demand, policy, and supply as headwinds for the sector, leading to increased commodity price volatility [15][16] - The company is prepared to scale back activity if commodity prices weaken significantly, emphasizing the importance of maintaining operational efficiencies [17][19] - Management expressed confidence in the company's ability to deliver consistent results and drive long-term shareholder returns despite market challenges [29][30] Other Important Information - The company has made significant advancements in carbon management, including a 25-year carbon offtake agreement for a low carbon ammonia facility [13] - The company expects to see benefits from revised crude transportation contracts, delivering a pretax cash flow uplift of approximately $200 million in 2025 [28] Q&A Session All Questions and Answers Question: CapEx and OpEx reductions for this year - Management discussed a mix of efficiency gains and timeline adjustments, emphasizing that the decisions made will not sacrifice production in the outer years [34][36][97] Question: Free cash flow and capital breakdown - Management provided details on the expected cash flow inflection, highlighting contributions from reduced capital spending and increased operating cash flow [40][44] Question: Thoughts on divestitures - Management indicated that divestiture decisions will be value-based, with options available for both short and long cycle assets [51][60] Question: Opportunities in Oman - Management expressed excitement about the potential in Block 53 and the North Oman discovery, anticipating cash flow improvements [61][66] Question: Low Carbon Ventures business - Management highlighted the strong voluntary compliance market for carbon reduction credits and the importance of partnerships in the low carbon space [74][78] Question: U.S. oil supply outlook - Management noted that U.S. shale basins are plateauing or declining, with the Permian potentially plateauing sooner than expected due to reduced activity levels [81][90]

Financial Data and Key Metrics Changes - In Q1 2025, the company generated an adjusted profit of $0.87 per diluted share and a reported profit of $0.77 per diluted share, with a significant difference attributed to the mark-to-market impact of derivatives [20] - The company generated approximately $1,200,000,000 of free cash flow before working capital and exited the quarter with $2,600,000,000 of unrestricted cash [20] - Year-to-date, the company has retired $2,300,000,000 in debt, contributing to a reduction in annual interest expense by $370,000,000 [14][25] Business Line Data and Key Metrics Changes - The oil and gas business produced just over 1,390,000 BOE per day, meeting production guidance [4] - OxyChem delivered $215,000,000 on an adjusted basis, overcoming operational challenges related to winter weather [10] - The midstream and marketing business significantly outperformed expectations, driven by strong gas marketing optimization [11] Market Data and Key Metrics Changes - The company expects total company production to modestly increase in Q2 2025, driven by various activities including Permian activity levels and the return of Gulf of America production [21] - The company revised its full-year operating cost guidance from $9 to $8.65 per BOE, reflecting a commitment to operational efficiency [23] Company Strategy and Development Direction - The company is focused on strengthening its balance sheet, increasing returns to shareholders, and contributing to U.S. energy leadership through disciplined capital allocation and operational excellence [29] - The company is in advanced negotiations to extend the Block 53 contract in Oman by fifteen years, which is expected to unlock significant additional resources [7][9] - The company is committed to debt reduction and has made significant progress, with all 2025 maturities retired [14][26] Management's Comments on Operating Environment and Future Outlook - Management highlighted uncertainty around demand, policy, and supply as headwinds for the sector, leading to increased commodity price volatility [14] - The company is prepared to scale back activity and manage costs prudently if commodity prices weaken significantly [16] - Management expressed confidence in the operational momentum and financial position, expecting to deliver consistent results and preserve value through commodity cycles [28] Other Important Information - The company signed a landmark 25-year carbon offtake agreement for a low carbon ammonia facility, supporting the transportation and geologic storage of approximately 2,300,000 metric tons of CO2 annually [12] - The company anticipates approximately $1,000,000,000 in incremental pretax free cash flow from non-oil and gas sources in 2026, with further expansion in 2027 [28] Q&A Session Summary Question: Can you elaborate on CapEx and OpEx reductions for this year? - Management indicated that the reductions are a mix of efficiency gains and timeline adjustments, with no immediate impact on production expected [32][34] Question: How much of the free cash flow inflection is from operating cash flow versus capital spending reductions? - Management provided a breakdown of expected cash flow improvements from various segments, including chemicals and midstream [39][45] Question: What are the thoughts on divestitures at this point in the cycle? - Management stated that divestiture decisions are value-based, with options available for both short and long cycle assets [58] Question: Can you unpack the opportunities in Oman? - Management expressed excitement about the Block 53 extension and recent discoveries, indicating potential cash flow improvements [60][63] Question: What are the thoughts on the Low Carbon Ventures business? - Management highlighted the strong voluntary compliance market for carbon reduction credits and the potential for enhanced oil recovery using CO2 [70][72] Question: What are the expectations for U.S. oil supply in the near and long term? - Management noted that U.S. shale basins are plateauing or declining, with the Permian potentially plateauing sooner than expected due to reduced activity levels [77][78]

Occidental Petroleum Corporation (OXY) reported first-quarter 2025 earnings of 87 cents per share, which surpassed the Zacks Consensus Estimate of 73 cents by 19.2%. The bottom line improved 38.1% year over year. (See the Zacks Earnings Calendar to stay ahead of market-making news.)This improvement was due to higher domestic realized commodity prices, partially offset by lower sales volumes.GAAP earnings in the reported quarter were 77 cents per share compared with 75 cents in the year-ago quarter.Total Rev ...

With just one subscription to Beyond the Wall Investing , you can save thousands of dollars a year on equity research reports from banks. You'll keep your finger on the pulse and have access to the latest and highest-quality analysis of this type of information.So far I've written 2 articles on Occidental Petroleum (NYSE: OXY ) stock here on Seeking Alpha, initiating my bullish coverage in late September 2024 and updating my thesis in mid-September this year . LastHe leads the investing group Beyond the Wal ...

05.08.25 First Quarter Earnings Conference Call CAUTIONARY STATEMENTS 2 Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to statements about Occidental Petroleum Corporation's ("Occidental" or "Oxy") expectations, beliefs, plans or forecasts. Forward-looking statements involve estimates, expectations, projections, goals, forecasts, assumption ...

Occidental Petroleum (OXY) reported $6.84 billion in revenue for the quarter ended March 2025, representing a year-over-year increase of 13.9%. EPS of $0.87 for the same period compares to $0.65 a year ago.The reported revenue represents a surprise of -4.27% over the Zacks Consensus Estimate of $7.15 billion. With the consensus EPS estimate being $0.73, the EPS surprise was +19.18%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to de ...

Occidental Petroleum (OXY) came out with quarterly earnings of $0.87 per share, beating the Zacks Consensus Estimate of $0.73 per share. This compares to earnings of $0.65 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 19.18%. A quarter ago, it was expected that this oil and gas exploration and production company would post earnings of $0.67 per share when it actually produced earnings of $0.80, delivering a surprise of 19.40 ...