Occidental Jumps as $5.8 Billion Debt Cut and Dividend Hike Impress Investors

"Occidental reported adjusted EPS of $0.31 per share for Q4 2025, handily topping the $0.18 consensus estimate. The beat came despite a GAAP net loss of $68 million, driven by charges related to the OxyChem sale, which closed January 2, 2026. Production hit 1,481 Mboed, exceeding the high end of guidance as the Permian and Rockies led outperformance. Concerns materialized, as realized crude prices fell to $59.22 per barrel, down 9% quarter over quarter, while natural gas plunged 24% to $1.12 per Mcf."

"CEO Vicki Hollub emphasized operational discipline in prepared remarks: "Our emphasis on operational excellence and cost efficiency drove meaningful production and operating expense outperformance during the fourth quarter." The company reduced debt by $5.8 billion since mid-December 2025, bringing principal debt to $15.0 billion following the OxyChem divestiture. Occidental also raised its quarterly dividend more than 8% to $0.26 per share, payable April 15, 2026."

Occidental delivered adjusted EPS of $0.31 for Q4 2025 versus a $0.18 consensus, alongside a GAAP net loss of $68 million tied to OxyChem sale charges. Production averaged 1,481 Mboed, beating guidance with Permian and Rockies strength. Realized crude fell to $59.22 per barrel and natural gas to $1.12 per Mcf, reducing Oil and Gas pre-tax income to $0.7 billion from $1.3 billion. Midstream and Marketing contributed $204 million in pre-tax income on improved gas margins and lower transport costs. Debt declined by $5.8 billion to $15.0 billion, dividend rose to $0.26, and full-year free cash flow reached $4.284 billion.

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