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Occidental Petroleum (OXY) delivered strong fourth-quarter 2025 results, with adjusted earnings per share (EPS) of $0.31, surpassing the consensus estimate of $0.18 by 67%. Production reached 1,481 Mboed, exceeding guidance, while year-end proved reserves totaled 4.6 billion BOE, supported by an organic reserves replacement ratio of 107%. Key drivers included lower lease operating expenses, higher production levels, and robust midstream and marketing income. The company also reduced principal debt by $5.8 billion to $15 billion, reflecting disciplined financial management. Analysts, including JPMorgan's Arun Jayaram, praised the results for their capital efficiency, solid reserve replacement, and strong cash flow performance. Looking ahead, Occidental's first-quarter 2026 guidance reflects a cautious outlook, with production volumes forecasted at 1,405 Mboed, including 698 Mboed of oil, representing a 4%-5% reduction due to weather-related downtime from Winter Storm Fern and macroeconomic uncertainties. The company plans to reduce activity and capital expenditures, with capex guidance 12% below Street expectations and oil volume guidance 1%-2% below consensus. CEO Vicki Hollub emphasized the company's focus on operational efficiency and cost management, which contributed to its strong fourth-quarter performance despite upcoming challenges.
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About OXY

Occidental Petroleum is an independent exploration and production company with operations in the United States, Latin America, and the Middle East. At the end of 2024, the company reported net proved reserves of 4.6 billion barrels of oil ... Read more

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Bearish Option Strategy: Long Puts

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