AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-3: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 5/6 · 31/10/2026
Moat31
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 1/4 · Historical unit-cost improvements and transportation optimization demonstrate useful capabilities. They do not establish persistent superiority over competitors. Competitive market-priced sales limit differentiation, and management’s advanced-recovery leadership claim lacks comparative recovery or cost evidence.
durability · 1/4 · 2025 organic reserve replacement of 107% supports resource replenishment, while all-in replacement was 98%. Neither establishes enduring superior economics. Competitor resources and nascent carbon-management markets limit confidence that current capabilities create durable protection.
customer dependency · 1/4 · The disclosed midstream and marketing business sells at market prices or forward to refiners, end users and other participants in competitive markets. This supports weak differentiated customer dependency in that business, indirectly; it does not demonstrate actual switching behavior across every operation.
erosion resilience · 2/4 · Cost improvements, reserve replenishment and transportation optimization show adaptation. Actual September pipeline-related production curtailment demonstrates infrastructure vulnerability, although preliminary company production remained within guidance. Technological competition is a potential erosion mechanism, not evidence of a realized competitive defeat.
Pricing power—
Insufficient evidence for every rubric criterion; no category score is inferred.
realized pricing · 1/4 · First-half 2026 worldwide oil realizations rose to $83.37/Bbl from $67.37/Bbl, alongside higher benchmarks; second-quarter domestic gas realized negative $1.48/Mcf. Preliminary third-quarter oil realized $85.91/Bbl against $85.79 WTI, while domestic gas recovered to $1.61/Mcf. These mixed outcomes demonstrate market exposure rather than persistent pricing control.
retention · — · The passages disclose production, sales channels and commodity realizations, but do not establish repeat customer demand, renewals, engagement or switching friction. Production above guidance measures operating delivery rather than retention. Competitive commodity sales alone cannot establish either strong or poor customer retention.
margin resilience · 2/4 · Transportation optimization and lower costs offset some first-quarter commodity weakness and supported first-half results. Crude-sale timing also contributed, limiting persistence. Collars offer bounded protection but cap upside; preliminary third-quarter settlements reduced operating cash flow before working capital by $94 million. Assessment is indirect, without a comparable full-cycle unit-margin series.
contractual freedom · 1/4 · Competitive market and forward sales indicate limited unilateral customer pricing discretion in midstream and marketing. Collars impose floors and ceilings on specified commodity exposure rather than confer customer pricing power. Comprehensive customer contract terms are absent, so the assessment remains bounded to these disclosed arrangements.
Predictability62
5 consecutive published 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
- observedAnnualPeriods
- 5.00
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, an original issuer-reported unadjusted EBIT reconciled to net income, income tax and signed net interest, or reported pretax profit plus reported gross interest expense. Reported EBIT is distinct from GAAP operating income and gross interest. 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, an original issuer-reported unadjusted EBIT reconciled to net income, income tax and signed net interest, or EBIT calculated from reported pretax profit plus reported gross interest expense; the issuer-reported EBIT is distinct from GAAP operating income and gross interest; 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. ROIC remains undefined for nonpositive invested capital; the explicit asset-return alternative does not change the ROIC chart. Missing financial inputs alone never trigger an alternative. 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 · Production exceeded 2025 guidance with capital spending $300 million below the original plan. First-half 2026 continuing operating cash flow of $6.478 billion exceeded $3.143 billion capital expenditure. The completed OxyChem sale materially supported debt repayment; equity issuance and discontinued-operation cash outflows temper conclusions about full-cycle capital efficiency.
incentive alignment · 3/4 · The then-CEO’s LTI was 60% conditioned on three-year TSR and CROCE. No 2023 TSR awards were earned, and 2025 annual payouts received no individual discretionary adjustment. Ownership requirements and March 1, 2026 NEO compliance support alignment. The subsequent CEO transition limits extrapolation to the complete current compensation package.
execution · 3/4 · 2025 and second-quarter 2026 production exceeded guidance, alongside cost improvements, reserve replenishment and a completed divestiture. Acquisition timing materially supported 2025 growth. Preliminary third-quarter production remained within guidance despite curtailment. These are operating outcomes, not retention evidence; carbon-management commercial execution and the new CEO’s long-term record remain unproven.
governance · 3/4 · Disclosed independent board leadership and committees, annual majority-vote elections, and shareholder meeting, consent and proxy-access rights support strong governance. The actual 2026 advisory compensation vote received 94.34% support. Exclusion of two shareholder proposals warrants scrutiny but does not itself establish impropriety; these disclosures do not prove exceptional governance durability.
Evidence
The following table sets forth the average lease operating expense per Boe from ongoing operations for each of the three years in the period ended December 31, 2024:
2024
2023
2022
Average lease operating expense per Boe
$
9.75
$
10.48
$
9.52
Average lease operating expense per Boe decreased in 2024, compared to 2023, primarily due to lower operational costs as a result of the CrownRock Acquisition and operational efficiencies.
2024 Form 10-K, filed 2025-02-18; MD&A, ongoing-operations lease operating expense per Boe · Filed 18/02/2025
Occidental reduced operating expenses by $275 million1 and achieved the company’s lowest lease operating expense per barrel of oil equivalent since 2021.
2026 proxy statement, filed 2026-03-19; 2025 operating expense achievements · Filed 19/03/2026
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.
2026 proxy statement, filed 2026-03-19; 2025 production and capital spending versus guidance · Filed 19/03/2026
(1)$575 million aggregate cost reduction compared to original fiscal year 2025 guide.
2026 proxy statement, filed 2026-03-19; cost-reduction comparison footnote · 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.
June 2026 Form 10-Q, filed 2026-08-05; first-half midstream and marketing operating drivers · Filed 05/08/2026
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.
2025 Form 10-K, filed 2026-02-18; midstream and marketing competition and market-priced sales · 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.
2025 Form 10-K, filed 2026-02-18; 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.
2025 Form 10-K, filed 2026-02-18; potential technological competition · Filed 18/02/2026
•In September, Occidental temporarily curtailed production at certain Gulf of America facilities due to a third-party gas pipeline constraint and maintenance activities.
Third-quarter earnings considerations, filed 2026-10-13; September production curtailment · Filed 13/10/2026
“We are unlocking more from our assets through our industry-leading advanced recovery capabilities and differentiated value-based development approach.
Second-quarter earnings release, filed 2026-08-05; CEO claim concerning advanced recovery · Filed 05/08/2026
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).
2026 proxy statement, filed 2026-03-19; 2025 worldwide reserve replacement, MMBOE and ratio definitions · 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.
2025 Form 10-K, filed 2026-02-18; low-carbon market competition and development risks · Filed 18/02/2026
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.
2025 Form 10-K, filed 2026-02-18; expected STRATOS operating commencement and capacity · Filed 18/02/2026
32
The following table presents the Company's average realized prices and average index prices for the periods presented:
Three months ended
Six months ended
June 30, 2026
March 31, 2026
June 30, 2026
June 30, 2025
Average Realized Prices
Oil ($/Bbl)
United States
$
96.93
$
70.31
$
83.72
$
66.78
International
$
95.83
$
67.59
$
81.32
$
70.67
Total Worldwide
$
96.78
$
69.91
$
83.37
$
67.37
NGL ($/Bbl)
United States
$
23.79
$
18.45
$
21.19
$
22.81
International
$
33.49
$
23.52
$
28.08
$
26.80
Total Worldwide
$
24.64
$
18.99
$
21.86
$
23.29
Natural Gas ($/Mcf)
United States
$
(1.48)
$
1.01
$
(0.26)
$
1.88
International
$
1.95
$
1.93
$
1.94
$
1.90
Total Worldwide
$
(0.80)
$
1.20
$
0.19
$
1.88
Average Index Prices
WTI oil ($/Bbl)
$
92.79
$
71.93
$
82.36
$
67.58
Brent oil ($/Bbl)
$
97.06
$
77.93
$
87.49
$
70.74
NYMEX gas ($/Mcf)
$
2.89
$
3.93
$
3.41
$
3.65
Average Realized Prices as Percentage of Average Index Prices
June 2026 Form 10-Q, filed 2026-08-05; quarterly and first-half realized commodity prices and index prices · Filed 05/08/2026
Three months ended September 30, 2026
Average Realized Prices
Oil ($/Bbl)
United States
$
85.93
International
$
85.80
Total Worldwide
$
85.91
NGL ($/Bbl)
United States
$
24.10
International
$
29.11
Total Worldwide
$
24.63
Natural Gas ($/Mcf)
United States
$
1.61
International
$
2.00
Total Worldwide
$
1.69
Average Index Prices
WTI oil ($/Bbl)
$
85.79
Brent oil ($/Bbl)
$
91.62
NYMEX gas ($/Mcf)
$
2.97
Average Realized Prices as Percentage of Average Index Prices
Third-quarter earnings considerations, filed 2026-10-13; preliminary September-quarter realizations and index prices · Filed 13/10/2026
Further, this summary may not account for all adjustments and charges required to fully reflect changes in industry conditions, is preliminary and is subject to finalization of Occidental's financial reporting process for the third quarter of 2026.
Third-quarter earnings considerations, filed 2026-10-13; preliminary reporting qualification · Filed 13/10/2026
The sold call establishes a ceiling price and the purchased put establishes a floor price that the Company will receive for the contracted commodity volume for a defined period of time.
June 2026 Form 10-Q, filed 2026-08-05; collar ceiling and floor mechanics · Filed 05/08/2026
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.
June 2026 Form 10-Q, filed 2026-08-05; collar notional volume and WTI price terms · Filed 05/08/2026
Crude oil collar settlements for the third quarter of 2026 negatively impacted operating cash flow before working capital by $94 million.
Third-quarter earnings considerations, filed 2026-10-13; preliminary collar settlement cash effect · Filed 13/10/2026
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.
June 2026 Form 10-Q, filed 2026-08-05; six-month consolidated cash flows, millions · Filed 05/08/2026
Cash flow provided by investing activities from discontinued operations was $9.5 billion for the six months ended June 30, 2026, primarily reflecting proceeds from the OxyChem Transaction.
June 2026 Form 10-Q, filed 2026-08-05; discontinued investing cash flows and OxyChem proceeds · Filed 05/08/2026
The sale was completed on January 2, 2026, resulting in a gain of approximately $3.1 billion, net of taxes.
June 2026 Form 10-Q, filed 2026-08-05; completed OxyChem sale · Filed 05/08/2026
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.
2026 proxy statement, filed 2026-03-19; then-CEO performance-conditioned long-term incentive mix · 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.
2026 proxy statement, filed 2026-03-19; actual 2025 annual incentive discretion · Filed 19/03/2026
company’s shareholders. The ownership guidelines range from two to six times the officer’s annual base salary, based on position, as
illustrated below:
Position
Multiple of Base Salary
Chief Executive Officer
6
Chief Financial Officer
4
Chief Operating Officer
4
Senior Vice Presidents
3
Vice Presidents
2
An officer who does not meet the minimum ownership guidelines may not sell any shares of Occidental common stock until he or
2026 proxy statement, filed 2026-03-19; officer ownership multiples and sale restrictions · Filed 19/03/2026
she meets the ownership guidelines and would continue to meet the ownership guidelines following any such sale.
2026 proxy statement, filed 2026-03-19; continuation of ownership sale restriction · Filed 19/03/2026
As of March 1, 2026, each of the NEOs was in compliance with these guidelines.
2026 proxy statement, filed 2026-03-19; NEO ownership-guideline compliance as of March 1, 2026 · Filed 19/03/2026
No Payout of 2023 TSR Awards. No amounts were earned under the 2023 TSR awards, which had a performance period that ended on
2026 proxy statement, filed 2026-03-19; no payout of 2023 TSR awards · Filed 19/03/2026
December 31, 2025 and were structured similarly to the 2025 TSR awards described above.
2026 proxy statement, filed 2026-03-19; TSR performance-period end and award comparability · 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.
2026 proxy statement, filed 2026-03-19; board governance and shareholder rights · 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.
2026 proxy statement, filed 2026-03-19; exclusion of two shareholder proposals · Filed 19/03/2026
The advisory vote to approve named executive officer compensation was approved by Occidental’s shareholders by the following vote:
For
679,690,815
94.34%
Against
38,852,814
5.40%
Abstain
1,906,970
0.26%
Broker Non-Votes
116,147,017
3.
Current report, filed 2026-05-04; actual 2026 advisory compensation vote · Filed 04/05/2026
On April 30, 2026, Vicki Hollub, President and Chief Executive Officer (“CEO”) of Occidental Petroleum Corporation (“Occidental”), informed the Board of Directors of Occidental (the “Board”) of her decision to retire, effective as of June 1, 2026 (the “Transition Date”).
Current report, filed 2026-05-04; Hollub retirement effective June 1, 2026 · Filed 04/05/2026
Jackson, 50, as Occidental’s President and CEO and as a member of the Board, in each case effective as of the Transition Date.
Current report, filed 2026-05-04; Jackson appointment effective on the transition date · Filed 04/05/2026
Total global production averaged 1,433 thousand barrels of oil equivalent per day (Mboed) for the second quarter of 2026, exceeding the high end of guidance, with the Permian and Gulf of America business units outperforming.
Second-quarter earnings release, filed 2026-08-05; production outcome versus guidance · Filed 05/08/2026
Total company production for the third quarter of 2026 is within Occidental's guidance range and includes the temporary Gulf of America downtime described below.
Third-quarter earnings considerations, filed 2026-10-13; preliminary production versus guidance · Filed 13/10/2026
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.
2025 Form 10-K, filed 2026-02-18; acquisition contribution to production growth · Filed 18/02/2026
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.
March 2026 Form 10-Q, filed 2026-05-05; first-quarter operating offsets and commodity pricing weakness · Filed 05/05/2026
