Occidental Petroleum Corp. divested non-core proved and unproved royalty and mineral stakes within the DJ Basin for about $900 million and sure non-core Permian Basin belongings for round $400 million within the first quarter (Q1), the hydrocarbons and chemical compounds producer mentioned in its quarterly report.
To maintain debt manageable, Houston, Texas-based Occidental launched a $4.5 billion-$6 billion asset sale program when it introduced its merger with CrownRock LP late 2023. Occidental accomplished its $12.4 billion buy of CrownRock in Q3 2024.
Occidental mentioned in its annual report for 2024 it had achieved its near-term debt compensation aim of $4.5 billion in This autumn that yr. In its newest quarterly assertion, for the January-March 2025 interval, it mentioned it has made $2.3 billion of debt repayments to date this yr.
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In its preliminary announcement of the DJ Basin and Permian divestments to undisclosed patrons on February 18, Occidental mentioned, “The transactions introduced right this moment proceed to high-grade our portfolio and speed up the progress towards attaining each our medium-term stability sheet deleveraging goal and shareholder return pathway”.
“Occidental will proceed to advance deleveraging through free money circulate and divestitures”, it mentioned in that announcement.
On the finish of Q1 2025 it owed $1.56 billion in present maturities from long-term debt. Occidental accrued whole present liabilities of $9.62 billion.
In the meantime it had present belongings of $9.72 billion together with $2.61 billion in money and money equivalents.
Occidental logged $860 million in adjusted web revenue attributable to shareholders for Q1 2025, up from $792 million for the prior three-month interval primarily because of greater home realized commodity costs. Partially offsetting that was a lower in gross sales volumes from 1.46 million barrels of oil equal a day (MMboed) to 1.39 MMboed.
Adjusted web earnings per share was $0.87 diluted, beating the Zacks Consensus Estimate of 73 cents.
Oil and fuel pre-tax earnings was $1.7 billion. Occidental produced 1.39 MMboed, which is on the midpoint of steerage.
Occidental’s chemical compounds section contributed a $185 million pre-tax earnings. “In comparison with the fourth quarter of 2024, the lower in first-quarter OxyChem earnings was primarily as a consequence of decrease realized caustic soda and polyvinyl chloride costs together with greater ethylene and pure fuel prices”, Occidental mentioned.
Midstream and advertising and marketing suffered a $77 million pre-tax loss. “In comparison with the fourth quarter of 2024, the rise in first-quarter midstream and advertising and marketing outcomes was primarily as a result of timing of crude oil gross sales and better sulfur costs at Al Hosn”, it mentioned.
Occidental registered $2.15 billion in working money circulate, which turns into $3 billion earlier than working capital.
It earlier declared a Q1 2025 dividend of $0.24 per share, up from $0.22 for This autumn 2024.
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