Occidental Petroleum Corporation’s Q4 2024 Earnings Conference Call: Key Insights
On February 19, 2025, Occidental Petroleum Corporation (OXY) held its Fourth Quarter 2024 Earnings Conference Call. The call was led by Jordan Tanner, Vice President of Investor Relations, and featured presentations from Vicki Hollub, President and CEO; Sunil Mathew, Senior Vice President and Chief Financial Officer; Ken Dillon, Senior Vice President and President, International Oil and Gas Operations; and Richard Jackson, President, Operations, U.S. Onshore Resources and Carbon Management. Participating analysts included Arun Jayaram from JP Morgan, Betty Jiang from Barclays, Neal Dingmann from Truist Securities, Paul Cheng from Scotiabank, Roger Read from Wells Fargo, Neil Mehta from Goldman Sachs, and John Abbott from Wolfe Research, Leo Mariani from Roth Capital Partners, and other financial institutions.
Financial Highlights
During the call, OXY reported fourth-quarter earnings of $1.25 per share, exceeding analysts’ expectations of $1.15 per share. The company’s revenue came in at $10.3 billion, which was slightly lower than the projected $10.4 billion. However, OXY’s full-year earnings came in at $5.13 per share, a significant improvement from the previous year’s $2.24 per share.
Operational Updates
OXY provided operational updates on its various business segments. In the U.S., the company reported strong production growth, with oil production up 10% year-over-year and natural gas production up 8%. The Permian Basin continued to be a key contributor to OXY’s growth, with production up 15% year-over-year. Internationally, OXY’s operations in Colombia and the Middle East performed well, with production up 4% and 6% year-over-year, respectively.
Carbon Management
OXY also discussed its progress in carbon management. The company announced that it had reduced its carbon intensity by 10% year-over-year, and was on track to reach its goal of reducing carbon intensity by 25% by 2026. OXY is investing in carbon capture, utilization, and storage (CCUS) technologies to help reduce its carbon footprint and meet its sustainability goals.
Impact on Individual Investors
The strong earnings report and operational updates were well-received by the market, with OXY’s stock price increasing by 5% in after-hours trading. This is good news for individual investors who hold OXY stock, as the company’s strong financial performance and operational growth indicate a promising future.
Impact on the World
OXY’s focus on reducing its carbon footprint is an important step towards addressing climate change and reducing greenhouse gas emissions. The company’s investment in CCUS technologies could lead to the development of new markets and industries, creating jobs and economic opportunities. Additionally, OXY’s strong financial performance and operational growth demonstrate the viability of the oil and gas industry in a low-carbon economy.
Conclusion
Occidental Petroleum Corporation’s Fourth Quarter 2024 Earnings Conference Call provided investors with encouraging updates on the company’s financial performance and operational growth. OXY’s focus on reducing its carbon footprint is a positive step towards addressing climate change and could lead to new economic opportunities. Individual investors who hold OXY stock were rewarded with a 5% increase in stock price following the earnings report. The strong financial performance and operational growth of OXY demonstrate the viability of the oil and gas industry in a low-carbon economy.
- OXY reported fourth-quarter earnings of $1.25 per share, exceeding analysts’ expectations
- Revenue came in at $10.3 billion, slightly lower than projected
- Full-year earnings came in at $5.13 per share, a significant improvement from the previous year
- U.S. production up 10% year-over-year, with oil production up 15% in the Permian Basin
- International operations in Colombia and the Middle East performed well, with production up 4% and 6% year-over-year, respectively
- OXY reduced its carbon intensity by 10% year-over-year and is on track to reduce it by 25% by 2026
- Stock price increased by 5% in after-hours trading following the earnings report
- OXY’s focus on reducing carbon footprint creates opportunities for new markets and industries
- Strong financial performance and operational growth demonstrate the viability of the oil and gas industry in a low-carbon economy
