Occidental reported its financial results for the third quarter of 2025, citing strong operational performance and higher-than-expected production. The company generated $2.8 billion in operating cash flow and $3.2 billion in operating cash flow before working capital. Capital spending totaled $1.8 billion, with contributions from noncontrolling interest amounting to $39 million, resulting in quarterly free cash flow before working capital of $1.5 billion.
Average total company production exceeded guidance at 1,465 thousand barrels of oil equivalent per day (Mboed). The midstream and marketing segment also surpassed expectations for pre-tax adjusted income.
During the quarter, Occidental repaid $1.3 billion in debt, reducing its principal debt balance to $20.8 billion. Earnings per diluted share were reported at $0.65, with adjusted earnings per diluted share at $0.64.
President and Chief Executive Officer Vicki Hollub stated: “Occidental’s third quarter results are a testament to the exceptional operational execution of our teams and the strength of our upstream portfolio. We achieved notable outperformance across our oil and gas assets as well as within our midstream and marketing operations.” She added: “The sale of OxyChem is an important milestone in the strategic transformation of our company and will enable us to further strengthen our balance sheet, accelerate shareholder returns and unlock high-return opportunities across our core oil and gas business.”
Oil and gas pre-tax income was $1.3 billion for the third quarter, driven by higher crude oil volumes and prices compared to the previous quarter. Average worldwide realized crude oil prices increased by 2% from the prior quarter to $64.78 per barrel, while natural gas liquids prices fell by 5% to $19.60 per barrel.
OxyChem posted a pre-tax income of $197 million for the period, down from the second quarter due primarily to lower realized prices and volumes across most product lines, partially offset by favorable raw material costs.
Midstream and marketing activities generated pre-tax income of $93 million during the third quarter; this segment’s results exceeded guidance despite lower Waha-to-Gulf-Coast gas spreads and higher expenses related to low-carbon venture businesses.
The company highlighted that some financial metrics referenced—such as adjusted income or free cash flow before working capital—are non-GAAP measures not calculated according to U.S. generally accepted accounting principles (GAAP) standards.
Occidental describes itself as an international energy company with primary assets in the United States, Middle East, and North Africa.
Hollub noted that selling OxyChem marks a significant step in Occidental’s ongoing strategy shift toward focusing on its core oil and gas business while strengthening its financial position.
Forward-looking statements in Occidental’s announcement caution that actual outcomes may differ due to various risks such as market conditions, regulatory approvals regarding transactions like the proposed sale of OxyChem to Berkshire Hathaway Inc., changes in commodity pricing or economic factors affecting global operations.
