To assess Occidental Petroleum’s (Oxy’s) ability to continue generating profits by increasing efficiency, investors will review a variety of U.S. onshore production system data in addition to capital expenditures and cost controls. Investors also need to know if Occidental is managing growth, costs, and its capital discipline amid fluctuating commodity prices throughout the rest of this year.
Overview of operational performance and production metrics
In the fourth quarter and all of 2025, Occidental produced significant amounts of crude and natural gas from its U.S. onshore properties. For 2025, average daily total production (MBOE/d) was 1,265, representing consistent oil and natural gas output in core areas such as the Permian Basin and Rockies. Average daily total production increased in the fourth quarter to 1,278 MBOE/d, signifying that despite changing market conditions, there was no decline in the company’s ability to maintain consistent operational performance.
Increases in production efficiency were realized due to strategic well completions, optimized reservoir management, and longer lateral drilling. Additionally, these approaches provided the company with the opportunity to continue producing at current levels while reducing costs. The operational dependability of Occidental’s onshore properties also increased through continuous maintenance and monitoring of assets.
Through the implementation of various technologies and operational efficiencies throughout its U.S. onshore property base, Occidental maintained relatively flat production numbers for 2025 while increasing production modestly each quarter. Production increases in the Midland and Delaware Basins supported Occidental’s strategic plans and provided a solid platform for future financial and strategic planning.
Financial performance and operational efficiency
During 2025, Occidental generated $12.6 billion in operating cash flow. The primary uses of this cash were to fund new development projects and provide liquidity for other corporate purposes. With respect to capital spending, Occidental focused on development projects that were expected to have the largest returns and therefore enhance profitability.
As part of the ongoing efforts to improve operational efficiencies and reduce costs, Occidental implemented several initiatives related to supply chain management and utilized technology throughout its U.S. onshore production operations. These programs produced margin improvements without negatively affecting either production levels or safety. In fact, according to comments made by senior executives with the Company, “a balance between cost control and increasing production” is a key element of what is referred to as the Company’s “returns-based operating strategy.”
In the fourth quarter (Q4) of 2025, operating cash flows from continuing operations totaled $3.2 billion. High levels of operating cash flow illustrate the durability of the U.S. onshore property base and allow for efficient allocation of available resources, thereby maintaining sustainable operational momentum. Additionally, the availability of operating cash flow creates opportunities for the Company to execute priorities related to shareholders.
Strategic outlook and reserve management
Information regarding future production, reserves, and strategic plans will be provided in the Company’s upcoming first-quarter operational summary. At the end of 2025, Occidental believed it held approximately 8,700 MMBOE of proved reserves comprised of crude oil and natural gas. It is also anticipated that planned drilling in early 2026 will total 5.6–6.0 million net lateral feet; this level of activity should enable the Company to optimize its trade-off between expanded production levels and reduced costs.
Investors may utilize information contained in the first-quarter operational summary to evaluate whether Occidental is using available capital resources to generate long-term value for shareholders. Furthermore, the report will demonstrate how the Company’s production volumes, disciplined capital management practices, and strategically invested capital are driving operational performance, generating investor confidence, and creating long-term value for all shareholders.
Occidental expects to show in the first-quarter operational summary how it is coordinating production volume levels, reserve estimates, and capital expenditures in order to meet both near-term financial objectives and long-term strategic objectives. Investors can then assess how these factors contribute to long-term value creation for shareholders and business resilience.
