Description
Occidental Petroleum’s Record-Breaking Permian Surge: The Cost-Crushing Growth Engine Behind Its Future!
Occidental Petroleum Corporation reported a quarter defined by strong operational execution, major portfolio reshaping, and continued balance sheet repair, offset by commodity volatility and execution risk in long-dated growth projects. The announced sale of OxyChem is a significant step toward concentrating the portfolio on oil and gas. Management noted that total resource potential has expanded from 8 billion BOE in 2015 to roughly 16.5 billion BOE today, while production has grown from about 650 MBOE/d to more than 1.4 MBOE/d. The mix is now approximately 83% domestic, materially reducing geopolitical exposure. Proceeds from the OxyChem sale—about USD 6.5 billion for debt reduction and USD 1.5 billion for cash—are expected to take principal debt below USD 15 billion, lower annual interest expense, and strengthen financial resilience. Quarterly results were solid. The company generated USD 3.2 billion in operating cash flow and USD 1.
