Occidental's Net Income Drops 70.97% in Q2 2025

Occidental announced net income attributable to common stockholders of $288 million, or $0.26 per diluted share, for the second quarter of 2025. This compares to analyst estimates of $0.28 per diluted share. Adjusted earnings per diluted share stood at $0.39. The company's total revenue for Q2 2025 was $6.414 billion, missing the analyst estimate of $6.2885 billion. Compared to Q2 2024, net income saw a decrease from $992 million, and revenue declined from $6.817 billion. This marks a -70.97% year-over-year change in net income and a -5.89% year-over-year change in revenue.

Key Highlights

The company reported total company production above the mid-point of guidance at 1,400 Mboed. The Midstream and Marketing segment exceeded the high-end of guidance for pre-tax adjusted income. Additionally, Occidental announced $950 million of additional divestitures since the start of Q2 2025, with approximately $370 million already closed. Year-to-date, Occidental has repaid $3.0 billion of debt through asset sales, organic cash flow, and proceeds from warrants exercised.

Operational Efficiency and Capital Management

Operating cash flow reached $3.0 billion, with operating cash flow before working capital at $2.6 billion. Capital spending for the quarter was $2.0 billion, and contributions from noncontrolling interest of $51 million resulted in a quarterly free cash flow before working capital of $0.7 billion. Occidental is reducing the mid-point of its 2025 capital guidance by $100 million and international operating costs by $50 million, driven by continued operational efficiency gains. Year-to-date, the company has realized or identified $500 million in capital and operating cost reductions from the original guidance.

Management Outlook

President and Chief Executive Officer Vicki Hollub stated, "Continued well performance leadership and a focus on enhanced operational efficiencies enabled us to generate strong financial results in the second quarter." She added, "By unlocking lower cost resources, accelerating our deleveraging efforts and advancing our strategic growth projects, we have positioned our portfolio to deliver long-term value."