What caused OXY's earnings to drop in Q4?

Occidental Petroleum's (OXY) earnings are likely to be affected by several factors, including oil prices, production levels, and operational efficiencies. Here are some key points to consider:

1. **Oil Prices**: Oil prices, particularly the Brent crude price, have experienced fluctuations that can significantly impact OXY's earnings. Lower oil prices can lead to reduced revenue and potentially lower earnings per share (EPS).
2. **Production Levels**: Occidental Petroleum's production levels, especially in the Permian Basin, can influence its earnings. Variations in production volumes can affect the company's profitability. For instance, the company has set a fourth-quarter production guidance midpoint of 1.45 million barrels of oil equivalent (BOE) per day, and a guidance increase for the Permian Production of 12,000 BOE per day in Q4.
3. **Operational Efficiencies**: The company's operational efficiencies, including lease operating expenses, can impact its earnings. Lower expenses can contribute to higher profitability. In Q3, the company reported the lowest domestic lease operating expenses per barrel since Q1 2022.
4. **External Factors**: External factors such as weather disruptions and commodity price volatility can also affect OXY's earnings. For example, weather disruptions can lead to production downtime and reduced revenue.

In conclusion, a combination of oil prices, production levels, operational efficiencies, and external factors can cause Occidental Petroleum's earnings to drop in Q4.