Occidental Petroleum Corporation (OXY) Business Profile

What it does

Occidental Petroleum is an international energy company founded in 1920 and headquartered in Houston. Vicki Hollub is President and Chief Executive Officer. The company produces crude oil, natural gas liquids (NGL) and natural gas. NGL are hydrocarbon liquids produced alongside oil or natural gas, while natural gas is sold for uses including power generation, heating and industrial activity.

Its oil and gas operations are concentrated in the United States, the Middle East and North Africa. In the United States, it operates in Texas, New Mexico and Colorado, and offshore in the Gulf of America. International operations are primarily in Algeria, Oman, Qatar and the UAE. The company holds leading positions in the Permian and DJ Basins, operates offshore in the Gulf of America, and is the largest independent oil producer in Oman.

Occidental also gathers, processes, transports, stores and markets oil, gas and CO2 through its midstream and marketing business. Those assets support its own production and provide services to third parties. Its low-carbon business develops direct-air-capture, carbon-sequestration, carbon-capture-and-storage and lithium opportunities, while supporting enhanced oil recovery operations that use CO2 to recover oil from mature fields.

The company sold OxyChem, its former chemical business, to Berkshire Hathaway in an all-cash transaction completed on January 2, 2026. OxyChem is reported as discontinued operations.

How it makes money

Occidental earns most of its revenue from selling oil, NGL and natural gas. Commodity prices, particularly oil prices, are the main influence on its financial results. Oil and NGL sales are exposed to market prices and regional price differences, while some international natural-gas prices are fixed under long-term contracts. The company produces hydrocarbons from conventional fields and from unconventional resources, then uses primary recovery, waterflooding, CO2 flooding and steam flooding where applicable to produce additional volumes.

Its midstream and marketing segment supports the oil and gas business and also serves third parties. It can earn fees or service-based revenue through gathering systems, gas plants, pipelines, storage facilities and terminal commitments. It also markets products to refiners, end users and other market participants, at market prices or on a forward basis. Results in this segment can move with commodity prices, export demand and oil and gas transportation spreads.

The company has equity investments in WES, which owns gathering systems, processing plants and pipelines, and DEL, which operates a gas pipeline network connecting Qatar, the UAE and Oman. Al Hosn Gas in the UAE processes natural gas and sulfur for sale. OLCV develops carbon-removal and carbon-capture-and-storage projects; these activities are intended to create low-carbon business opportunities but face developing markets and changing policy conditions.

It was reported on 23 October 2026 that the consensus expected FY2026 revenue of $27.5 billion and EPS of $6.72; it was also reported on that date that the consensus expected Q4 2026 revenue of $6.7 billion and EPS of $1.39.

Customers and how it sells

Occidental sells oil, NGL and natural gas into domestic and international markets. Its marketing business sells to refiners, end users and other market participants, including through exchange platforms and bilateral transactions with direct counterparties. The company also provides midstream services to its subsidiaries and third parties through gathering, processing, transportation, storage and terminal infrastructure.

The company’s oil and gas footprint spans the United States, Algeria, Oman, Qatar and the UAE. U.S. activity is concentrated in Texas, New Mexico and Colorado, plus offshore Gulf of America operations. The company has leading positions in the Permian and DJ Basins and is the largest independent oil producer in Oman. Its international gas business includes long-term contracts, while domestic gas prices and regional differentials are driven by local supply and demand, regulation, LNG demand and transportation capacity.

The company had 10,412 employees in continuing operations as of December 31, 2025. Its midstream network also provides access to domestic and international markets, including gas-processing and pipeline infrastructure in the United States, Qatar, the UAE and Oman. No customer concentration is identified.

Suppliers and costs

Occidental’s costs include exploration, development and production spending; oilfield services; electricity; CO2; transportation; labor; and other operating expenditures. The availability and cost of oilfield services, electricity and CO2 can affect costs. Inflation, supply-chain conditions, tariffs and transportation constraints can also raise costs or disrupt operations.

The company uses service providers to support reserve development and works with vendors to secure critical materials. It seeks to manage inflation through operational efficiencies, longer-term pricing arrangements and vendor engagement. The company does not identify a sole-source supplier.

In 2025, the company invested $5.6 billion in oil and gas assets and $0.7 billion in midstream and marketing, before contributions from noncontrolling interests. Its capital plan emphasizes oil and gas assets, while midstream spending included investment primarily related to STRATOS. The company also expects that future emissions-reduction, carbon-removal and carbon-capture-and-storage costs may be substantial.

Competitive position

Occidental competes with public, private and state-owned producers in domestic and international oil, NGL and natural-gas markets. Its exploration and production business competes for reserves, capital, service capacity, infrastructure and commodity customers. Hydrocarbon prices and demand are influenced by market conditions, while production economics depend on costs, transport capacity and local price differentials.

Its midstream and marketing businesses compete for gathering, processing, transportation, storage and delivery capacity. The marketing business also competes with market participants on exchange platforms and in bilateral transactions. OLCV faces a broad set of competitors in markets for low-carbon products and CO2-removal credits, where rules for financing, construction, verification and operations are evolving.

No individual competitor is named.

Our reading: The company’s operating scale in the Permian and DJ Basins, Gulf of America and Oman is a moderate competitive advantage because it combines established producing areas with a portfolio across several regions.

Our reading: Its CO2 separation, transportation, utilization, recycling and storage capabilities are a moderate moat in enhanced oil recovery, because these capabilities are linked to existing operations and infrastructure.

Our reading: Midstream assets and equity investments support market access and flow assurance, but they operate in competitive and regulated markets, limiting the strength of this advantage.

Growth opportunities

Occidental’s stated growth approach centers on investment in oil and gas, midstream infrastructure and carbon-management businesses. In oil and gas, the company plans to operate and develop areas with known reserves, optimize capital intensity in the Permian Basin, Rockies, Gulf of America and international locations, and apply subsurface and recovery expertise to conventional and unconventional resources. It also seeks to extend mature-field life through secondary and tertiary recovery methods.

The company invested $5.6 billion in oil and gas assets during 2025 and says it will enhance its asset base with investments in its cash-generative oil and gas business. It seeks to maintain its production base and to allocate capital to high-return assets while retaining flexibility for commodity-price movements, tariffs, inflation and supply-chain constraints.

In low-carbon operations, OLCV is developing direct air capture, carbon removal and carbon-capture-and-storage projects. STRATOS is designed to capture up to 500,000 tons of CO2 per annum once complete. The company expects operations to begin in 2026, with initial capacity of up to 250,000 tons of CO2 per annum from trains 1 and 2. It also has five CO2 sequestration hubs under development in Texas and Louisiana.

The company’s emissions goals include net-zero operational and energy-use emissions before 2040, with an ambition to do so before 2035, and net-zero total carbon inventory before 2050. Execution depends in part on third-party capital, project financing and long-term carbon-removal or carbon-capture-and-storage agreements.

Structural risks

• Oil, NGL and natural-gas prices are volatile and can be affected by global supply and demand, geopolitical events, OPEC actions, infrastructure constraints, inflation and currency movements. Lower prices can reduce economically producible volumes, cash flow, reserve values and the value of oil and gas properties.

• The company has substantial debt obligations. Its ability to reduce, repay or refinance debt depends on generating cash flow, asset monetizations, capital-market access and interest-rate conditions.

• Operations depend on drilling, production, gathering, processing and pipeline systems. Accidents, chemical releases, extreme weather, power outages, cyber-attacks, natural disasters, labor constraints and facility damage can interrupt production or delay projects.

• International operations face political instability, armed conflict, terrorism, sanctions, trade restrictions, currency controls, adverse taxes, permitting delays, expropriation and nationalization risks.

• Environmental, climate, drilling, production, royalty and permitting laws can change. The company faces environmental liabilities, remediation obligations, litigation, regulatory investigations and costs associated with emissions reduction.

• Low-carbon projects face uncertain policy support, evolving tax-credit rules, supply-chain and construction costs, developing CO2-removal markets and a need for third-party financing.

Bottom line

Our reading

Our reading: Occidental is primarily a commodity-producing oil and gas business, supported by midstream infrastructure and international operations, so oil prices and operating costs remain central to its cash generation. Its producing positions, CO2-based recovery capabilities and midstream network provide operating tools, while its low-carbon projects add execution, policy and financing dependencies. Debt reduction is a stated capital-allocation priority following the OxyChem sale.