Occidental sold non-core proved and unproved U.S. onshore oil and gas working interests for approximately $730 million in the first six months of 2025, and non-operated royalty interests for $900 million in Q1 2025. Additionally, an agreement to sell Permian Basin gas gathering assets for $580 million was entered into in July 2025.

The purchase price allocation for the $12.4 billion CrownRock acquisition was finalized, and its full six months of production in 2025 contributed to higher oil and gas sales volumes, which partially offset the impact of lower crude oil prices on year-to-date earnings.

Occidental's strategic priorities include advancing technologies and decarbonization solutions to develop sustainable low-carbon businesses, leveraging its carbon management experience to develop carbon capture, utilization, and sequestration projects, including the commercialization of direct air capture technology.

Management prioritized deleveraging, using cash on hand, asset sales, and warrant exercises to repay $1.0 billion of 2025 senior notes, $870 million of 2026 senior notes, and $400 million of a two-year term loan in H1 2025. Subsequent to quarter-end, an additional $700 million of the two-year term loan was repaid, reducing principal debt to $21.4 billion.

In Q2 2025, the Oil and Gas segment saw lower lease operating expenses, and the Midstream and Marketing segment benefited from higher gas margins due to transportation capacity optimization in the Permian Basin, partially offsetting the impact of lower commodity prices.

Occidental's President, CEO, Senior Vice President, and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, indicating sound internal governance over financial reporting.

The company stated there have been no material changes from the risk factors included under Part I, Item 1A of Occidental's 2024 Form 10-K for the year ended December 31, 2024, suggesting a stable, albeit existing, risk landscape.

Occidental's financial condition and cash flows are highly dependent on oil, NGL, and natural gas prices, which remained volatile due to geopolitical risks, the evolving macroeconomic environment, and future actions by OPEC, directly impacting Q2 2025 earnings.

President Trump's announced 10% baseline tariff policy, with higher reciprocal rates for certain nations, could increase costs for Occidental's suppliers and impact OxyChem's import and export activities, creating new regulatory and economic headwinds.

Worldwide average realized oil prices decreased to $63.76/Bbl in Q2 2025 from $71.07/Bbl in Q1 2025 and $78.06/Bbl in Q2 2024. Similarly, NGL and natural gas prices also saw sequential declines, reflecting a challenging pricing environment for the company's core products.

Occidental operates through three segments: oil and gas, chemical, and midstream and marketing, which helps manage exposure to commodity price fluctuations. The midstream and marketing segment's improved gas margins in Q2 2025 partially offset lower oil prices.

The company's strategic focus on developing carbon management and sequestration solutions, including the direct air capture facility, demonstrates an effort to build future competitive advantages in an evolving energy landscape driven by sustainability demands.

Oil and gas lease operating expense decreased from $1,179 million in Q2 2024 to $1,135 million in Q2 2025. Midstream and marketing cost of sales also decreased from $280 million to $199 million in the same period, while chemical cost of sales increased from $868 million to $913 million.

Average daily sales volumes increased for the six months ended June 30, 2025, compared to the same period in 2024, primarily due to a full six months of production from the CrownRock assets, contributing to overall operational scale.

Chemical segment earnings for the six months ended June 30, 2025, decreased primarily due to lower PVC margins from lower pricing and higher ethylene and energy costs, indicating ongoing challenges in managing operational expenses within that segment.

Occidental and BlackRock formed a joint venture for the continued development of the first commercial scale direct air capture facility (STRATOS), with BlackRock committed to invest up to $550 million. This highlights a material commitment to carbon removal technology.

Advancing technologies and decarbonization solutions to develop sustainable low-carbon businesses is a stated strategic priority. This includes developing carbon capture, utilization, and sequestration projects and investing in other low-carbon technologies.

Occidental's low-carbon ventures businesses aim to leverage the company's existing legacy of carbon management experience to develop and commercialize new solutions, positioning it as a leader in this emerging sector.

In the first six months of 2025, Occidental repaid $1.0 billion of 2025 senior notes, $870 million of 2026 senior notes, and $400 million of a two-year term loan. Subsequent to quarter-end, an additional $700 million of the two-year term loan was repaid, reducing principal debt outstanding to $21.4 billion.

Capital expenditures for the six months ended June 30, 2025, were $3.9 billion, an increase from $3.6 billion in the same period of 2024, with the majority allocated to the oil and gas segment, aligning with the strategic priority to enhance the asset base.

In April 2025, Occidental issued 41.9 million shares of common stock for approximately $890 million from warrant exercises. The proceeds were strategically used to repay near-term debt maturities, demonstrating an effective use of capital to strengthen the balance sheet.

Occidental is focused on delivering a unique shareholder value proposition that includes its ongoing development of carbon management and sequestration solutions and GHG emissions reduction efforts, indicating a strategic commitment to environmental sustainability.

As of June 30, 2025, environmental remediation liabilities totaled $1.894 billion across 155 sites, with Occidental expecting to expend approximately 30% of this balance over the next three to four years, highlighting substantial ongoing environmental responsibilities.

Management explicitly states that Occidental conducts its operations with a priority on technical expertise, HSE (Health, Safety, and Environment), sustainability, and social responsibility, integrating these factors into its core business practices.

The average WTI price per barrel for Q2 2025 was $63.74, a significant decrease from $80.56 in Q2 2024. Management explicitly states that oil prices may remain volatile due to geopolitical risks, the evolving macroeconomic environment's impact on energy demand, and future actions by OPEC.

The company acknowledges inflationary pressures in the macro-economic environment as a factor influencing its financial condition, cash flows, and expenditure levels, indicating a challenging cost landscape.

President Trump's announcement of a 10% baseline tariff on most imports, with higher reciprocal rates for certain nations, could increase costs for Occidental's suppliers and subject OxyChem's imports and exports to tariffs, posing a new regulatory challenge.