Occidental Petroleum: Advancements in Low-Carbon Ventures

Occidental Petroleum’s recent earnings call for the first quarter of 2025 presented a mixed but detailed view of the company’s operational and financial performance, showcasing both strengths and challenges. The management highlighted a solid execution across its diversified portfolio, despite facing some market headwinds and external uncertainties. On the positive side, Occidental generated $3 billion in operating cash flow before working capital adjustments, maintaining oil and gas production at just over 1.39 million barrels of oil equivalent per day, which aligns with their guidance. The company emphasized substantial advancements in efficiency, particularly in the Permian Basin, where improved drilling strategies reduced well costs by 10% year-over-year, surpassing their initial improvement targets. These efficiency gains facilitated strategic adjustments, such as the reduction of two drilling rigs, while still expecting to increase production slightly.