Occidental Petroleum (OXY) Financials

Occidental Petroleum (NYSE: OXY) has demonstrated several notable financial trends over the past four years through 2025 Q2 across its income statements, cash flow statements, and balance sheets.

Positive Financial Highlights:

• Strong operating revenues with quarterly figures generally between $6.0 billion and $9.4 billion, displaying resilience in sales over recent years.
• Consistent net income from continuing operations, with positive earnings in most quarters, most recently $468 million in Q2 2025.
• Robust net cash from continuing operating activities, reaching $2.96 billion in Q2 2025, indicating good cash generation capability.
• Stable gross profits, ranging around $3.5 billion to $5.9 billion quarterly, reflecting operational profitability before expenses.
• Reduction in total debt levels from approximately $50.9 billion in Q4 2024 to $48.2 billion in Q2 2025, suggesting some deleveraging efforts.
• Shareholders’ equity shows an upward trend from about $29.3 billion in Q4 2023 to $36.2 billion in Q2 2025, supporting stronger capitalization.
• Maintained dividend payments with steady dividend per share around $0.18 to $0.27 through 2025 Q2, benefiting income-focused investors.
• Occidental has been actively repurchasing equity and paying dividends, although at modest levels recently, supporting shareholder returns.
• Asset base remains strong, with net property, plant and equipment around $58-69 billion consistently over this period.

Neutral Financial Aspects:

• Depreciation expense remains consistently high (around $1.7 to $1.9 billion per quarter), reflecting ongoing investment in capital-intensive operations.
• Accounts receivable and inventories have fluctuated moderately, showing variability in working capital but generally stable given the scale of operations.
• Common equity adjustments have consistently included large negative other equity adjustments (approx. negative $15 billion), likely related to comprehensive income or treasury stock effects.
• The company has had significant investing activities, with property, plant, and equipment purchases each quarter in the billion-dollar range, indicating ongoing capital expenditure programs.
• Weighted average shares outstanding remains steady around 880-984 million shares, indicating limited dilution or buyback impacts on share count over time.

Negative Financial Trends and Considerations:

• Occasional quarters have reported negative net income, such as a net loss of $120 million in Q4 2024, hinting at profit volatility.
• High and somewhat fluctuating total liabilities, remaining above $42 billion and sometimes reaching near $51 billion, signaling a leveraged balance sheet.
• Net cash used in investing activities remains high each quarter (around $1.5 to $9 billion historically), which could pressurize liquidity if cash generation slows.
• Significant preferred stock and dividends paid continuously (around $170-$280 million per quarter), which may reduce cash available for common shareholders.
• Other operating expenses and special charges fluctuate significantly, sometimes including impairments and restructuring costs (up to $79 million), potentially pressuring margins.

Summary: Occidental Petroleum has maintained stable revenues and solid cash flow generation, supporting its dividend policy and capital expenditures. The company’s balance sheet shows signs of gradual improvement with equity growth and slight deleveraging. However, occasional losses and consistently high investing outflows highlight operational and capital intensity risks. Overall, Occidental appears to be balancing growth and shareholder returns effectively amid commodity market fluctuations.