Occidental Petroleum reported fourth quarter and full-year 2025 earnings that surpassed guidance, overcoming a significant decline in oil prices through the strength of its midstream and marketing operations.

Financial Performance Amid Lower Oil Prices

For the fourth quarter of 2025, the company faced a 9% decline in global oil prices. This resulted in pre-tax income from oil and natural gas sales falling to $700 million, down from $1.3 billion in the third quarter. However, this shortfall was more than offset by a substantial increase in pre-tax income from marketing and midstream business operations, which rose from $81 million in the third quarter to $204 million in the fourth quarter. For the full year 2025, Occidental's net income was approximately $1.65 billion.

Operational and Reserve Highlights

Total global hydrocarbon production for the fourth quarter averaged about 1.48 million barrels of oil equivalent per day (boepd), with the full-year average at approximately 1.43 million boepd. The company reported access to roughly 4.6 billion boe of proven reserves. Proven reserve additions for the year, primarily from the Permian basin, totaled 340 million boe from extensions and discoveries.

Strategic Financial Moves

During 2025, Occidental focused on strengthening its financial position. The company paid down debt and bolstered its balance sheet through the sale of OxyChem, a transaction that closed in early January 2026.