Occidental Petroleum 2025 Q1 Earnings Beats Expectations with 6.4% Net Income Growth

Occidental Petroleum (OXY) reported its fiscal 2025 Q1 earnings on May 07th, 2025. Occidental's first quarter results surpassed expectations with a reported net income of $766 million, or $0.77 per share, exceeding analyst projections of $0.76 per share. The company also announced a reduction in its capital guidance midpoint by $200 million, reflecting efficiency gains. This strategic move aims to bolster financial flexibility and support debt reduction efforts. Occidental's commitment to operational excellence and financial strength positions it well for future market challenges.

Revenue
Occidental Petroleum achieved a 13.9% revenue increase in 2025 Q1, reaching $6.84 billion, compared to $6.01 billion in 2024 Q1. The oil and gas segment was the largest contributor with $5.68 billion, followed by the chemical segment generating $1.19 billion. Midstream and marketing added $203 million, culminating in a total segment revenue of $7.07 billion.

Earnings/Net Income
Occidental Petroleum maintained a consistent EPS of $0.81 in 2025 Q1, matching the previous year's figure. The company's net income grew by 6.4% to $945 million, up from $888 million in 2024 Q1. The stable EPS and net income growth indicate a balanced financial performance.

Price Action
The stock price of Occidental Petroleum has edged down 1.22% during the latest trading day, has edged down 1.01% during the most recent full trading week, and has dropped 3.77% month-to-date.

Post-Earnings Price Action Review
The strategy of acquiring Occidental Petroleum (OXY) shares following a revenue increase quarter-over-quarter and holding them for 30 days has historically delivered a 35.58% return over the past five years. This performance contrasts with a benchmark return of 84.08%, indicating moderate returns and associated risks. The strategy's compound annual growth rate (CAGR) was 6.30%, with a maximum drawdown of -26.31% and a Sharpe ratio of 0.26. These metrics suggest the strategy offers moderate returns with significant risk, underscoring the potential benefits and challenges of investing in Occidental Petroleum following positive earnings announcements.

CEO Commentary
"In the first quarter, our teams’ sustained focus on operational excellence unlocked additional efficiencies and supported the delivery of resilient free cash flow," said President and Chief Executive Officer Vicki Hollub. She emphasized the company's rapid advancement towards debt reduction goals and highlighted that Occidental's deep, diverse portfolio of high-quality assets positions the company for success in any market environment. The CEO's remarks reflect a positive outlook on operational performance and a commitment to maintaining financial strength.

Guidance
Occidental is reducing the mid-point of its 2025 capital guidance by $200 million and domestic operating costs by $150 million, driven by continued operational efficiency gains and schedule optimization in the Permian and Gulf of America. The company anticipates this strategic focus will enhance its financial flexibility and support ongoing debt reduction efforts.

Additional News
Occidental Petroleum has been actively involved in strategic asset sales, successfully closing transactions worth $1.3 billion in the first quarter of 2025. The company is also taking significant steps in debt reduction, having repaid $2.3 billion in debt to date this year. Furthermore, Occidental is advancing its sustainability agenda through its Oxy Low Carbon Ventures subsidiary, focusing on leading-edge technologies and business solutions aimed at reducing emissions and promoting a lower-carbon world. These strategic initiatives reflect Occidental's commitment to strengthening its financial position and supporting long-term growth while addressing environmental concerns.