OCCIDENTAL PETROLEUM CORP /DE/ Material Event - What Happened

Hey there! Let's break down what's going on with Occidental Petroleum, or "Oxy" as folks often call them, in a way that makes sense without needing a finance degree. Think of this as me explaining it to you over coffee.

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1. What happened? (in plain English - the actual event)

Event Description (what happened)

So, here's the big news: Occidental Petroleum (Oxy) just offered a glimpse into factors influencing its financial results for the fourth quarter of 2025. Oxy issued "Earnings Considerations" (Exhibit 99.1), providing management's preliminary insights into key factors shaping its upcoming earnings report. Think of it as them giving us a few crucial clues before the big reveal of their full report.

This filing provides concrete details, including:

• The significant sale of its chemical business, OxyChem. This sale significantly reshapes the company's structure.
• Specific average prices Oxy realized for its oil, natural gas liquids (NGLs), and natural gas. These directly indicate its revenue.
• Expected tax rates for both its continuing operations and the divested chemical business.
• The average number of shares outstanding, crucial for calculating per-share metrics like earnings per share (EPS).

2. When did it happen?

Event Date/Timeline

This event occurred on January 20, 2026. Oxy formally filed this information with the Securities and Exchange Commission (SEC).

3. Why did it happen? (context and background)

Companies often release these "Earnings Considerations" to provide investors with early insights into factors impacting financial performance. Management uses these releases to set expectations and enhance transparency ahead of the official earnings report.

Oxy's strategic transformation primarily drives this release. Oxy is streamlining operations to focus predominantly on its core oil and gas exploration and production (E&P) business. The sale of OxyChem, a major non-core asset, represents a key strategic step. By providing these early numbers, Oxy prepares investors for a significantly different financial report, reflecting its new, more focused business model. Specific price realizations also help investors understand the market conditions Oxy faced during the quarter.

4. Why does this matter? (impact and significance)

Impact Assessment (who/what is affected) & Financial Impact (if applicable)

This information matters because it offers an early, detailed look into Oxy's financial health for Q4 2025 and, more importantly, signals a fundamental shift in the company's future.

Here are the concrete numbers and their implications (Financial Impact):

• Oil Price Realization: Oxy realized an average of $58.99 per barrel (Bbl) worldwide for its oil. This directly measures top-line revenue from crude sales.
• NGL Price Realization: NGLs sold for an average of $16.66/Bbl worldwide.
• Natural Gas Price Realization: Natural gas fetched an average of $1.29 per thousand cubic feet (Mcf) worldwide. These prices are crucial for assessing profitability against market benchmarks.

The most significant news is the sale of its chemical business, OxyChem, completed on January 2, 2026. Oxy is now primarily an oil and gas company. Its financial reports will reflect this change, presenting OxyChem's results separately as "discontinued operations." Consequently, OxyChem's past performance will no longer factor into Oxy's ongoing revenue or profit, which clarifies future comparisons for the core E&P business. This move is expected to simplify Oxy's business, potentially reduce debt, and enable a more focused capital allocation strategy on its core energy assets.

Other key financial details provided include:

• Expected Tax Rates: 35-37% for the main oil and gas business, and 24-26% for the discontinued chemical business. These different rates can impact Oxy's overall tax burden and net income.
• Average Shares Outstanding: 1,002.9 million. This number is essential for calculating earnings per share (EPS), a key profitability metric.

These factors can influence investor sentiment before the full earnings report, depending on whether they indicate positive developments or challenges. This strong signal could affect the stock price in the short term as the market digests Oxy's new, more focused identity and its performance within the commodity price environment.

5. Who is affected? (employees, customers, investors, etc.)

Impact Assessment (who/what is affected)

Who does this event affect?

• Investors (that's you!): This news primarily targets you. It offers an early indicator that can influence your perception of Oxy's upcoming financial performance. With specific price realizations and the significant OxyChem sale, investors have more comprehensive data to consider. The sale fundamentally changes the company, making it more focused on oil and gas production and increasing its exposure to commodity price volatility.
• Oxy's Employees: Employees formerly with the OxyChem division now belong to a different company. For remaining Oxy employees, this announcement clarifies the company's future focus on oil and gas.
• Customers: Customers buying oil and gas from Oxy will likely see no immediate changes from this announcement, but the realized prices reflect market conditions for their products.
• The broader market: Other energy sector companies will likely use Oxy's realized prices as a benchmark. The sale of a major chemical division also represents a significant industry event, potentially signaling a trend toward specialization.

6. What happens next? (immediate and future implications)

What comes next?

• Immediately: Analysts and financial news outlets will digest these specific numbers – the realized prices for oil and gas, the tax rates, and the implications of the OxyChem sale. They will compare these figures to their predictions and market expectations. The stock price might move based on this initial analysis.
• In the coming weeks/months: The key event to watch for is Oxy's official fourth-quarter 2025 earnings report. That report will provide full numbers, including production volumes, capital expenditures, and management's complete commentary on strategy, debt reduction, and shareholder return plans. These "Earnings Considerations" serve as a prelude, offering a solid foundation for what to expect.
• Longer term: How these factors play out in the actual earnings report will influence investor confidence and potentially Oxy's future strategic decisions, especially now that the company has divested its chemical business to become a more pure-play E&P company. This shift could lead to a different approach to growth, capital allocation, and risk management.

7. What should investors/traders know? (practical takeaways)

Key Takeaways for Investors

For investors and traders, here are the key takeaways:

• OxyChem Sale: A Major Shift: Recognize that Occidental Petroleum is now a fundamentally different company. The OxyChem sale means financial statements will be reorganized, and the core business is now more purely focused on oil and gas. This strategic pivot aims to streamline operations and focus capital.
• Concrete Price Data is Crucial: Investors now have actual average prices Oxy realized for its oil, NGLs, and natural gas. Compare these to overall market prices (e.g., WTI or Brent for oil, NYMEX for gas) and your expectations. This indicates how effectively Oxy captured market prices.
• Tax Rates & Shares Impact EPS: The provided tax rates and average diluted shares outstanding are important for calculating net income and earnings per share (EPS), which directly impacts valuation.
• Prepare for the Official Earnings Release: This release serves as a preliminary update before the official earnings report. Be ready to analyze the full report upon its release and listen to management's comments on the conference call, especially regarding the financial impact of the OxyChem sale, the new strategic direction, and any updated outlook on production, capital spending, and debt.
• Enhanced Commodity Exposure: As a more focused oil and gas company, Oxy's financial performance will tie even more directly to global commodity price fluctuations. This increases both potential upside and downside risk.
• Understand the 'Why': With these details, understand why these factors are important to Oxy's business. The shift away from chemicals and the specific prices achieved are the primary drivers of its financial performance and future strategy.

This is a developing situation; stay tuned for further updates.