Occidental Petroleum reported fourth-quarter 2025 earnings of 31 cents per share, beating the Zacks Consensus Estimate of 19 cents by 63.2%, though down 61.3% year over year. Total revenues of $5.42 billion missed estimates by 7.8% and declined 5.2% year over year. Total production volume was 1,481 thousand barrels of oil equivalent per day, exceeding the company's guided range. Shares have risen 15.6% since the last earnings report, outperforming the S&P 500. Occidental strengthened its balance sheet by completing the OxyChem sale on 2 January 2026, reducing debt by $5.8 billion and bringing principal debt to $15 billion. Strong fourth-quarter production was driven by robust contributions from Permian assets, with Gulf of America volumes up 5.1% year over year.

Occidental Petroleum has completed a heavily subscribed cash tender offer, increasing its purchase cap from $700 million to $1.20 billion for several series of senior notes and debentures. The company paired the enlarged tender with consent solicitations that removed covenants and shortened redemption notice on its 6.125% 2031 Notes. The move represents a step towards simplifying Occidental's debt structure and increasing financial flexibility. The company recently raised its quarterly dividend to $0.26 per share, demonstrating how management is allocating cash between shareholders and creditors. Whilst the debt tender and covenant changes appear incremental rather than transformative, investors should monitor oil price volatility and leverage risks. Analysts project mixed outlooks, with some forecasting revenue declining to around $26.2 billion by 2028.

Occidental Petroleum rose 18.07% to $53.68 over the past year, outperforming despite falling oil prices. The company beat earnings estimates every quarter in 2025, with Q3 delivering a 29.90% EPS beat at $0.64 against consensus of $0.49. The transformative development was Occidental's sale of OxyChem to Berkshire Hathaway for $5.8 billion, which closed in January 2026 and enabled significant debt reduction to $15 billion. Full-year 2025 EPS reached $2.21 on revenue of $22.4 billion. Shares recently surged 6% on US-Iran tensions and Strait of Hormuz supply concerns. However, the consensus analyst target price of $51.88 suggests the stock is slightly overvalued at current levels, with 16 Hold, six Buy and four Sell ratings.