Why did Occidental Petroleum's operating profit drop sharply in Q4 2024?

Occidental Petroleum's operating profit dropped sharply in Q4 2024 due to a combination of factors:

1. **Production Costs**: The company's domestic lease operating expenses increased to $8.68 per barrel, which is the highest since Q1 2022. This indicates a rise in costs that can negatively impact profitability.
2. **Debt Repayment**: Occidental Petroleum repurchased $18 million in common stock and saw a repurchase of common stock, which could indicate a shift in capital allocation that might have affected operating profit. Additionally, the company has been actively repaying debt, which could be a factor if the repayment amount is significant compared to the operating profit.
3. **Weather Disruptions and Commodity Price Volatility**: Despite strong operational execution, weather disruptions and volatile commodity prices have impacted cash flow and profitability. This is a broader industry challenge that can affect any oil and gas company.

In summary, the drop in operating profit is likely a result of increased production costs, debt repayment, and weather disruptions, despite strong operational execution and record US production.