Occidental Petroleum
Occidental Petroleum's revenue fell 1.9% to $21.6 billion in fiscal 2025. Its net margin was 11.0%, down from 14.0% a year earlier. Free cash flow was $4.1 billion, down 20.7%. It paid out $1.6 billion in dividends and buybacks, 39% of free cash flow. The diluted share count rose 3.4%.
Net margin is net income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.
What Occidental Petroleum does
Occidental, known as Oxy, is an energy company that finds and produces oil, natural gas and natural gas liquids. Its assets are mostly in the United States, the Middle East and North Africa. It says it is among the largest oil and gas producers in the United States, with positions in the Permian and DJ Basins and the offshore Gulf of America, and that it is the largest independent oil producer in Oman.
Its business has two reportable segments, oil and gas, and midstream and marketing. The midstream and marketing segment moves and sells the company's oil and gas and tries to get the best value from them. A subsidiary in that segment, Oxy Low Carbon Ventures, works on carbon-related technologies such as direct air capture, carbon sequestration and lithium development.
In October 2025 Occidental agreed to sell its chemical business, OxyChem, to Berkshire Hathaway in an all-cash deal for $9.7 billion. The sale closed on January 2, 2026. OxyChem is now reported as discontinued operations, so the chemical business is no longer one of its segments. Its profits move with the prices of oil, natural gas and related products.
Its biggest risks, as it describes them
- Volatile oil, gas and product prices that strongly affect its results.
- Its debt, which could limit its financial flexibility.
- Operational hazards and catastrophic events, such as accidents at its facilities.
- Health, safety, environmental and climate-related rules that could raise its costs.
- Not finding or producing enough oil and gas to replace reserves, and errors in its reserve estimates.
Charts show fiscal years, from the 10-K filings.
Revenue and margins
Net income and earnings per share
From fiscal 2017 to 2025, earnings per share fell 0.7% a year and net income grew 7.7% a year, as new shares raised the share count by 31% and diluted each share's earnings.
Returns on capital
Cash flow
Payouts and share count
Valuation
Two ways to value Occidental Petroleum yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.
Discounted cash flow (DCF)
A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Occidental Petroleum's 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.
Value per share on three example scenarios, from Occidental Petroleum's fiscal 2025 free cash flow of $4.1B, net cash of −$20.4B at December 31, 2025 and 1,000 million diluted shares, from its filings. The scenarios are fitted to Occidental Petroleum: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, -16.2% a year, kept between 0% and 20%; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 12%: 11% for a cyclical or higher-risk business (Oil & Gas Exploration & Production), plus 1 point for unsteady results (revenue fell in two of the last five years); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.
- Last close, October 26, 2026
- $64.07
- Value on these assumptions, against the last close
- —
- Cash flows in years 1 to 10, valued today
- —
- Everything after year 10, valued today
- —
- Plus net cash
- —
- Share of value from after year 10
How the value changes with two assumptions
Price-to-earnings (P/E) method
Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.
Value per share on three example scenarios, from Occidental Petroleum's earnings per share of $6.46 (over the last four quarters). Each grows earnings for a year at the cash flow scenarios' rates and applies a multiple to next year's earnings: 12.7×, the middle of Occidental Petroleum's own P/E today, its peers' median and its sector's median (its peers' median) for the base scenario, 20% less and more for the cautious and optimistic ones. The price is brought back a year at 13%, 12% and 11%. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.
- Last close, October 26, 2026
- $64.07
- Value at this multiple, against the last close
- —
- Occidental Petroleum's P/E at the last close
- 9.9×
| Company | Last close | Earnings per share | P/E today |
|---|---|---|---|
| Diamondback EnergyFANG | $207.13 | $5.26 | 39.4× |
| EOG ResourcesEOG | $163.68 | $12.86 | 12.7× |
| Devon EnergyDVN | $51.64 | $4.21 | 12.3× |
| Occidental PetroleumOXY | $64.07 | $6.46 | 9.9× |
Balance sheet
| Fiscal year end | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Cash and short-term investments | 2.8 | 1.0 | 1.4 | 2.1 | 2.0 |
| Debt incl. finance leases | 29.6 | 19.8 | 19.7 | 26.1 | 22.4 |
| Net debt (negative means net cash) | 26.9 | 18.9 | 18.3 | 24.0 | 20.4 |
| Net debt to EBITDA | 1.9x | 0.8x | 1.5x | 2.0x | 1.7x |
| Debt to equity | 1.5x | 0.7x | 0.7x | 0.8x | 0.6x |
| Interest coverage | 3.3x | 14.7x | 5.9x | 4.4x | 3.9x |
| Current ratio | 1.2x | 1.1x | 0.9x | 0.9x | 0.9x |
| Quick ratio | 1.0x | 0.9x | 0.7x | 0.8x | 0.7x |
Insider trades
Over the 12 months between October 27, 2025 and October 26, 2026, 2 insiders bought $444,753 of Occidental Petroleum shares on the open market, and none sold any.
| Date | Insider | Trade | Shares | Price | Value | Filing |
|---|---|---|---|---|---|---|
| Jun 23, 2026 | Richard A. JacksonPresident and CEO, Director | Bought | 4,770 | $52.38 | $249,853 | Form 4 |
| Dec 16, 2025 | William R KlesseDirector | Bought | 5,000 | $38.98 | $194,900 | Form 4 |
Piotroski F-score
The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.
| Test | FY23 | FY24 | FY25 |
|---|---|---|---|
| Net income is positive | Pass | Pass | Pass |
| Cash from operations is positive | Pass | Pass | Pass |
| Return on assets rose | Fail | Fail | Fail |
| Cash from operations exceeds net income | Pass | Pass | Pass |
| Debt fell relative to assets | Pass | Fail | Pass |
| Current ratio rose | Fail | Pass | Fail |
| Share count didn't rise | Pass | Fail | Fail |
| Gross margin rose | Fail | Fail | — |
| Revenue rose relative to assets | Fail | Fail | Fail |
| F-score | 5 of 9 | 4 of 9 | 4 of 8 |
| Accruals ratio | −10.4% | −10.5% | −9.6% |
Compare
Put Occidental Petroleum side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.
Similar companies
| Company | Year | Revenue growth | Operating margin | Free cash flow margin | Return on capital | Net debt to EBITDA | F-score | Compare |
|---|---|---|---|---|---|---|---|---|
| Occidental Petroleum | FY25 | −1.9% | — | 19.0% | 4.9% | 1.7x | 4 | |
| EOG Resources | FY25 | −4.5% | 28.2% | — | 16.2% | 0.4x | 4 | Compare |
| Devon Energy | FY25 | 7.8% | — | 18.1% | 13.0% | 1.1x | 5 | Compare |
| Diamondback Energy | FY25 | 35.8% | 8.4% | — | 1.9% | 2.3x | 4 | Compare |
| Woodside Energy | FY25 | −1.5% | 29.9% | — | 7.1% | 0.7x | 4 | Compare |
10 years of figures
| Fiscal year | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Income statement | ||||||||||
| Revenue | 10.1 | 12.5 | 17.8 | 20.9 | 17.8 | 26.0 | 36.6 | 23.2 | 22.0 | 21.6 |
| Revenue growth | −19.1% | 24.0% | 42.5% | 17.3% | −14.8% | 45.8% | 41.1% | −36.8% | −4.9% | −1.9% |
| Gross profit | — | 9.6 | 15.0 | 18.1 | 15.4 | 23.2 | 33.4 | 20.0 | 18.9 | — |
| Research and development | — | — | — | — | — | — | — | — | — | — |
| Operating income | — | — | — | — | — | — | — | — | — | — |
| Net income | −0.6 | 1.3 | 4.1 | −1.0 | −14.8 | 2.3 | 13.3 | 4.7 | 3.1 | 2.4 |
| Diluted EPS (US$) | −0.75 | 1.70 | 5.39 | −1.22 | −17.06 | 1.58 | 12.40 | 3.90 | 2.44 | 1.61 |
| Diluted shares (millions) | 764 | 766 | 763 | 810 | 919 | 959 | 1,002 | 961 | 967 | 1,000 |
| Cash flow | ||||||||||
| Cash from operations | 3.4 | 4.9 | 7.7 | 7.4 | 4.0 | 10.4 | 16.8 | 12.3 | 11.4 | 10.5 |
| Capital expenditure | 2.7 | 3.6 | 5.0 | 6.4 | 2.5 | 2.9 | 4.5 | 5.7 | 6.3 | 6.4 |
| Free cash flow | 0.7 | 1.3 | 2.7 | 1.0 | 1.4 | 7.6 | 12.3 | 6.6 | 5.2 | 4.1 |
| Dividends paid | 2.3 | 2.3 | 2.4 | 2.6 | 1.8 | 0.8 | 1.2 | 1.4 | 1.4 | 1.6 |
| Share buybacks | 0.0 | 0.0 | 1.2 | 0.2 | 0.0 | 0.0 | 3.1 | 1.8 | 0.0 | 0.0 |
| Acquisitions | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Stock-based compensation | 0.1 | 0.1 | 0.2 | 0.2 | 0.2 | 0.3 | 0.3 | 0.2 | 0.2 | 0.2 |
| Balance sheet at fiscal year end | ||||||||||
| Cash and short-term investments | 2.2 | 1.7 | 3.0 | 3.0 | 2.0 | 2.8 | 1.0 | 1.4 | 2.1 | 2.0 |
| Debt incl. finance leases | — | 9.8 | 10.3 | 38.6 | 36.2 | 29.6 | 19.8 | 19.7 | 26.1 | 22.4 |
| Total assets | 43.1 | 42.0 | 42.2 | 107.2 | 80.1 | 75.0 | 72.6 | 74.0 | 85.4 | 84.2 |
| Total liabilities | 21.6 | 21.5 | 22.5 | 73.0 | 61.5 | 54.7 | 42.5 | 43.7 | 51.0 | 47.6 |
| Shareholders' equity | 21.5 | 20.6 | 21.3 | 34.2 | 18.6 | 20.3 | 30.1 | 30.3 | 34.5 | 36.6 |
| Margins and ratios | ||||||||||
| Gross margin | — | 76.5% | 84.1% | 86.7% | 86.5% | 89.3% | 91.1% | 86.5% | 85.8% | — |
| Operating margin | — | — | — | — | — | — | — | — | — | — |
| Net margin | −5.7% | 10.5% | 23.2% | −4.7% | −83.3% | 8.9% | 36.3% | 20.3% | 14.0% | 11.0% |
| Free cash flow margin | 6.6% | 10.1% | 15.1% | 4.8% | 8.0% | 29.1% | 33.6% | 28.6% | 23.5% | 19.0% |
| Return on capital | — | — | 15.4% | 1.4% | −18.4% | 8.0% | 29.7% | 8.2% | 6.9% | 4.9% |
| Return on equity | −2.5% | 6.2% | 19.7% | −3.5% | −56.2% | 11.9% | 52.8% | 15.5% | 9.5% | 6.7% |
| Return on assets | −1.3% | 3.1% | 9.8% | −1.3% | −15.8% | 3.0% | 18.0% | 6.4% | 3.9% | 2.8% |
| Net debt to EBITDA | — | 1.4x | 0.7x | 4.7x | — | 1.9x | 0.8x | 1.5x | 2.0x | 1.7x |