Western Petroleum Releases Q4 Financial Report

China Chemical News reported recently that Occidental Petroleum released its Q4 2025 financial results. The report shows that after completing the sale of its OxyChem chemical business, the company has reduced debt by $5.8 billion since mid-December, bringing total principal down to $15 billion, marking a key step in deleveraging. The quarter recorded a net loss of $68 million, or $0.07 per share. Alongside financial improvements, the company announced an over 8% increase in quarterly dividends to $0.26 per share, doubling dividends over four years.

The divestment of OxyChem signifies a structural shift for Occidental, focusing on upstream and midstream operations and advancing carbon management initiatives. With significantly reduced leverage and production exceeding expectations, Occidental’s financial flexibility for 2026 is enhanced, though commodity prices remain a key variable.

Operationally, the average quarterly production was 1.481 million barrels of oil equivalent per day, exceeding guidance, mainly driven by strong performance in the Permian and Rocky Mountain regions. However, weak commodity prices continue to pressure profitability. Midstream and marketing segments performed well, with pre-tax income rising from $81 million in Q3 to $204 million, mainly due to improved natural gas transportation margins in the Permian and lower crude oil transportation costs. Operating cash flow remained resilient at $2.6 billion, with capital expenditures of $1.8 billion, generating free cash flow of $1 billion.