AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 5/6 · 18/10/2026
Moat31
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 1/4 · Cost reductions and transportation optimization demonstrate useful capabilities. Market-priced competition and absent relative cost evidence leave structural protection weak; scale claims alone do not establish it.
durability · 1/4 · Organic reserve replacement of 107% in 2025 supports asset replenishment, while all-in replacement was 98%. This single-year achievement and recent efficiencies do not establish enduring relative economics against technology-capable competitors.
customer dependency · 1/4 · Disclosed sales at market prices to refiners, end users and other market participants, alongside exchange and bilateral competition, indicate weak differentiated dependency. Specific customer switching behavior is unavailable.
erosion resilience · 2/4 · Lower spending, operating cost reductions and organic reserve replacement demonstrate adaptation. Competitive technology risks and unproven low-carbon markets temper that evidence; these risks are possibilities rather than demonstrated operating failures.
Pricing power—
Insufficient evidence for every rubric criterion; no category score is inferred.
realized pricing · 1/4 · First-half 2026 oil price realizations increased revenue, but domestic gas realizations reduced revenue by $701 million. Higher benchmark oil prices and earlier realized-price weakness indicate fragile market-driven outcomes rather than demonstrated pricing control.
retention · — · Sales-volume disclosures establish continued aggregate demand but cannot identify repeat customers, renewal behavior or switching friction.
margin resilience · 2/4 · Cost reductions and transportation optimization offset some commodity weakness, including lower realized prices across all oil-and-gas commodities in first-quarter 2026 versus 2025. Historical pricing-related cash-flow declines and partial collar protection leave resilience mixed. Assessment uses indirect operating evidence rather than a complete unit-margin series.
contractual freedom · 1/4 · Market or forward pricing in competitive channels provides limited unilateral pricing discretion. The 2026 collars protect a defined volume with a floor while also imposing a ceiling; they do not confer customer pricing power. Complete customer contract terms are unavailable.
Predictability62
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 25.00
- Revenue growth volatility (pp)
- 24.98
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 6.63
Financial strength17
Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 36.35
- netDebtEbitGrade
- 0.00
- interestCoverageGrade
- 16.62
- currentRatioGrade
- 14.90
- Debt / FCF (x)
- 5.46
- Net debt / operating income (x)
- 6.69
- Interest coverage (x)
- 2.83
- Current ratio (x)
- 0.94
Capital allocation74
Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- 7.78
- 3-year average dilution (%)
- 1.84
- 3-year average SBC / revenue (%)
- 0.89
- cashConversionGrade
- 100.00
Management75
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 3/4 · Actual capital spending below guidance, cash generation, completed divestiture and substantial debt payments demonstrate strong recent discipline. Debt reduction relied materially on asset-sale proceeds, and warrant financing involved dilution. Full-cycle acquisition returns remain unestablished.
incentive alignment · 3/4 · Existing long-term awards tied 60% of CEO LTI to three-year relative TSR and absolute CROCE. Actual 2025 cash awards received no discretionary individual adjustment, and retirement-related performance awards remain subject to actual performance. These support strong contractual alignment, with incomplete ownership and payout evidence limiting the conclusion.
execution · 3/4 · Production above guidance with lower capital spending, operating cost reductions, organic reserve replacement and the completed OxyChem sale demonstrate strong execution. Production growth benefited primarily from acquisition timing, cost savings were measured against guidance, and carbon-management commercial execution remains unproven.
governance · 3/4 · An independent chairman, entirely independent committees, annual majority-vote elections and shareholder meeting, consent and proxy-access rights support strong disclosed governance. Exclusion of two shareholder proposals is a counterweight; supplied passages do not establish whether those exclusions were improper or prove exceptional governance outcomes.
Evidence
Occidental set a new annual production record of 1.43 million barrels of oil equivalent per day, exceeding the high end of its guidance, while spending $300 million(1) less in capital expenditures than originally planned.
Compensation Discussion and Analysis / 2025 production and capital spending outcomes · Filed 19/03/2026
Occidental reduced operating expenses by $275 million1 and achieved the company’s lowest lease operating expense per barrel of oil equivalent since 2021.
Compensation Discussion and Analysis / operating expense reductions · Filed 19/03/2026
Excluding the impact of items affecting comparability, the increase reflected higher crude margins driven by the timing impact of crude marketing, higher gas margins from transportation capacity optimization, and lower crude marketing transportation costs.
MD&A / first-half 2026 midstream and marketing results · Filed 05/08/2026
In each core operating area, the Company’s operations benefit from scale, technical expertise, decades of high-margin inventory, HSE leadership and commercial and governmental collaboration.
MD&A / management assertions about operating-area advantages · Filed 18/02/2026
The Company’s midstream and marketing businesses operate in competitive and highly regulated markets and competes for capacity and infrastructure for the gathering, processing, transportation, storage and delivery of its products, which are sold at market prices or on a forward basis to refiners, end users and other market participants.
Business / midstream and marketing competition and market pricing · Filed 18/02/2026
The Company has many competitors (including national oil companies), some of which are larger and better funded, more risk-tolerant, have greater access to capital, technology and talent or have special competencies.
Risk factors / competitor resources and capabilities · Filed 18/02/2026
As competitors develop or adopt new technologies (including artificial intelligence), the Company may be placed at a disadvantage and may be required to invest significant resources to remain competitive.
Risk factors / competitor technology adoption · Filed 18/02/2026
WORLDWIDE PROVED DEVELOPED AND UNDEVELOPED RESERVES REPLACEMENT (MMBOE) 2025 Revisions 161 Improved recovery 60 Extensions and discoveries 340 Total organic (A) 561 Purchases 10 Sales (57) Total reserve additions (B) 514 Production (C) 523 Reserves replacement ratio - Non-GAAP Organic (A)/(C) 107% All-In (B)/(C) 98% CROCE is defined by Occidental as operating cash flow less changes in working capital from continuing and discontinued operations plus distributions from Western Midstream Partners, LP which are included in cash flows from investing activities, if any, divided by average total debt plus total equity (average of the beginning and ending totals for the current period).
Annex A / 2025 organic and all-in reserve replacement · Filed 19/03/2026
OLCV and its businesses and investees also face a broad range of competitors, with nascent markets for low-carbon products and CO2 removal credits that are subject to evolving laws, regulations, policies and reporting and verification mechanisms that can significantly impact the financing, construction and operation of projects and the development of markets.
Business / low-carbon competition and nascent markets · Filed 18/02/2026
33 The following table analyzes the impacts of changes in average realized prices and sales volumes on the Company's domestic and international oil, NGL and natural gas revenues: Increase (Decrease) Related to millions Three months ended March 31, 2026 (b) Price Realizations Net Sales Volumes Three months ended June 30, 2026 (b) United States Revenue Oil $ 3,873 $ 1,488 $ 56 $ 5,417 NGL 444 155 (7) $ 592 Natural gas 164 (414) — $ (250) Total $ 4,481 $ 1,229 $ 49 $ 5,759 International Revenue Oil (a) $ 650 $ 188 $ 34 $ 872 NGL 74 26 (11) $ 89 Natural gas 83 2 (4) $ 81 Total $ 807 $ 216 $ 19 $ 1,042 Increase (Decrease) Related to millions Six months ended June 30, 2025 (b) Price Realizations Net Sales Volumes Six months ended June 30, 2026 (b) United States Revenue Oil $ 7,286 $ 1,872 $ 132 $ 9,290 NGL 1,035 (68) 69 1,036 Natural gas 586 (701) 29 (86) Total $ 8,907 $ 1,103 $ 230 $ 10,240 International Revenue Oil (a) $ 1,365 $ 145 $ 12 $ 1,522 NGL 182 7 (26) 163 Natural gas 172 4 (12) 164 Total $ 1,719 $ 156 $ (26) $ 1,849 (a) Includes the impact of international production sharing contracts.
MD&A / realized price and sales-volume revenue bridge · Filed 05/08/2026
The average WTI price per barrel was $82.36 for the six months ended June 30, 2026, compared with $67.58 for the six months ended June 30, 2025.
MD&A / first-half 2026 versus 2025 WTI prices · Filed 05/08/2026
Cash flow provided by operating activities decreased in 2024, compared to 2023, primarily from lower realized pricing across most product lines in the chemical segment, lower realized oil and domestic gas prices in the oil and gas segment, and the final settlement related to the Andes Arbitration, partially offset by higher sales volumes in both the chemical and oil and gas segments.
MD&A / realized pricing effects on 2024 operating cash flow · Filed 18/02/2025
Excluding the impact of items affecting comparability, net income for the three months ended March 31, 2026, compared to the same period in 2025, reflected higher gas margins from transportation capacity optimization in the Permian, higher margins related to the timing impact of crude sales, lower long-haul crude transportation costs, and higher sulfur prices at Al Hosn in the midstream and marketing segment as well as lower interest expense due to the early redemption of long-term debt, partially offset by lower realized prices across all commodities in the oil and gas segment.
MD&A / first-quarter 2026 operating offsets to lower realized commodity prices · Filed 05/05/2026
The collars have a notional volume of 100 Mbbl per day, a floor WTI price of $55.00 per barrel and a weighted average ceiling WTI price of $75.89 per barrel.
Note 5 / crude collar volume, floor and ceiling · Filed 05/08/2026
CRUDE COLLARS In February 2026, the Company entered into crude two-way collar derivative instruments beginning in March for the remainder of 2026 to manage its near-term exposure to cash flow variability from crude oil price risk.
Note 5 / February 2026 introduction of crude collars · Filed 05/08/2026
6 Consolidated Condensed Statements of Cash Flows Occidental Petroleum Corporation and Subsidiaries Six months ended June 30, millions 2026 2025 CASH FLOW FROM OPERATING ACTIVITIES Net income $ 6,355 $ 1,413 Adjustments to reconcile net income to net cash provided by operating activities: Discontinued operations, net (3,119) (245) Depreciation, depletion and amortization of assets 3,641 3,627 Deferred income tax provision (benefit) 757 (137) Asset impairments and other charges 105 — Losses on sales of assets and other, net 22 24 Other noncash charges to income 100 497 Changes in operating assets and liabilities: (Increase) decrease in trade receivables (566) 121 (Increase) decrease in inventories (334) 286 (Increase) decrease in joint interest receivables and other current assets (172) 26 Decrease in accounts payable and accrued liabilities (314) (658) Increase (decrease) in current domestic and foreign income taxes 3 (193) Operating cash flow from continuing operations 6,478 4,761 Operating cash flow from discontinued operations, net of taxes (926) 347 Net cash provided by operating activities 5,552 5,108 CASH FLOW FROM INVESTING ACTIVITIES Capital expenditures (3,143) (3,387) Change in capital accrual (65) 26 Purchases of assets, businesses and equity investments, net (94) (108) Proceeds from sales of assets, net 71 1,450 Equity investments and other, net (164) (149) Investing cash flow from continuing operations (3,395) (2,168) Investing cash flow from discontinued operations 9,461 (562) Net cash provided (used) by investing activities 6,066 (2,730) CASH FLOW FROM FINANCING ACTIVITIES Payments of debt (8,695) (2,280) Cash dividends paid on common and preferred stock (839) (778) Proceeds from issuance of common stock 295 931 Purchases of treasury stock (117) — Contributions from noncontrolling interest, net 38 114 Other financing, net (158) (158) Financing cash flow from continuing operations (9,476) (2,171) Financing cash flow from discontinued operations — (4) Net cash used by financing activities (9,476) (2,175) Increase in cash, cash equivalents, restricted cash and restricted cash equivalents 2,142 203 Cash, cash equivalents, restricted cash and restricted cash equivalents — beginning of period 2,046 2,157 Cash, cash equivalents, restricted cash and restricted cash equivalents — end of period $ 4,188 $ 2,360 The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.
Consolidated Condensed Statements of Cash Flows / first-half 2026 spending, financing and cash generation · Filed 05/08/2026
For fiscal year 2025, the company generated $10.5 billion of operating cash flow and $4.3 billion of free cash flow before working capital.(2) This enabled management to reduce principal debt by approximately $4 billion in 2025 and, coupled with net proceeds from the OxyChem divestiture, supported an additional $7.0 billion in principal debt reduction as well as the Board’s recent authorization to increase the quarterly dividend by more than 8%.
Board message / 2025 cash generation and principal debt reduction · Filed 19/03/2026
OXYCHEM TRANSACTION The Company completed the sale of OxyChem on January 2, 2026 in an all-cash transaction for an adjusted sales price of $9.5 billion, subject to additional post-closing adjustments.
MD&A / completed OxyChem sale · Filed 05/08/2026
In April 2025, Occidental issued 41.9 million shares of stock in return for proceeds of approximately $890 million.
Note 9 / April 2025 warrant-related share issuance · Filed 05/05/2026
The proceeds from the warrant exercise were used to repay near-term debt maturities (See Note 3 - Long-Term Debt).
Note 9 / warrant proceeds used for debt repayment · Filed 05/05/2026
Our CEO’s compensation is heavily weighted toward long-term incentive awards, of which 60% were conditioned on Occidental’s three-year relative total shareholder return (TSR) and absolute cash return on capital employed (CROCE) performance.
Executive compensation summary / three-year TSR and CROCE conditions · Filed 19/03/2026
Although the 2025 ACI program permitted the increase or decrease of the ACI award payout by up to 25% based on individual performance, the Compensation Committee did not make any such adjustments.
2025 Annual Cash Incentive Award / actual payout determination without individual adjustments · Filed 19/03/2026
Accelerated vesting of outstanding long-term incentive awards, with any performance-based awards subject to actual performance; and ►Pro-Rata Bonus.
Retirement Policy / accelerated vesting subject to actual performance · Filed 19/03/2026
Corporate Governance Highlights RELATING TO THE BOARD ►Independent Chairman of the Board ►Annual elections of the entire Board by a majority of votes cast (for uncontested elections) ►Demonstrated commitment to Board refreshment ►Tenure policy that seeks to maintain an average tenure of 10 years or less for non-employee directors ►Board committees composed entirely of independent directors ►Meaningful director stock ownership guidelines (6x annual cash retainer) with holding requirement ►Annual evaluations of the Board, each committee and individual directors ►One meeting dedicated to strategy discussions every year with an expanded management group, in addition to ongoing strategy oversight RELATING TO SHAREHOLDER RIGHTS ►Ability of shareholders to call a special meeting at a 15% threshold ►Ability of shareholders to propose an action by written consent at a 15% threshold ►Shareholder right to proxy access (3% for 3 years, up to 20% of the Board)(1) ►Confidential Voting Policy ►Nominating Policy to consider properly submitted shareholder-recommended director nominees ►No supermajority voting requirements ►Active independent director participation in and oversight of the shareholder engagement program (1)For more information, see “Corporate Governance—Director Selection and Recruitment—Proxy Access for Shareholder-Nominated Director Candidates” on page 24.
Corporate Governance Highlights / board structure and shareholder rights · Filed 19/03/2026
2026 Proxy Statement 25 Table of Contents Corporate Governance Board Committees The committees of the Board are composed entirely of independent directors.
Corporate Governance / independent committee composition · Filed 19/03/2026
Following this announcement, after careful consideration and consultation with external legal counsel and review of Rule 14a-8 and prior SEC guidance on its application, Occidental determined that it had reasonable bases to exclude two shareholder proposals submitted by shareholder proponents for the 2026 Annual Meeting.
Corporate Governance / exclusion of two shareholder proposals · Filed 19/03/2026
Occidental’s peer group consists of BP p.l.c., Chevron Corporation, ConocoPhillips, EOG Resources, Inc., ExxonMobil Corporation, Shell, and TotalEnergies.
Performance Graph / named stock-return peer group · Filed 18/02/2025
Operations are expected to begin in 2026, with an initial capacity of up to 250,000 tons of CO2 per annum from trains 1 and 2, with the remaining 250,000 tons of capacity upon completion of trains 3 and 4.
Business / expected STRATOS startup and initial capacity · Filed 18/02/2026
(1)$575 million aggregate cost reduction compared to original fiscal year 2025 guide.
Compensation Discussion and Analysis / cost-reduction comparison against original 2025 guidance · Filed 19/03/2026
The increase in production was primarily driven by a full year of production in 2025 related to the CrownRock Acquisition, which closed in August 2024.
MD&A / acquisition contribution to 2025 production growth · Filed 18/02/2026
