Occidental Petroleum reported QQ1 2025 revenue of $6.91 billion, up 11.22% year-over-year and essentially flat to a modest decrease QoQ (-0.20%). The company delivered a solid gross profit of $2.51 billion, translating to a gross margin of 36.28%, and an operating margin of 22.93% with operating income of $1.584 billion and EBITDA of $3.567 billion. Net income stood at $0.931 billion, yielding an EPS of $0.8085 for the quarter. The results reflect a resilient earnings structure supported by an improving margin profile despite a light sequential revenue headwind.
Cash flow and capital allocation remained constructive: cash flow from operations (CFO) was $2.149 billion and capital expenditures totaled $1.909 billion, producing free cash flow (FCF) of $0.240 billion for the quarter. The company ended the period with cash and cash equivalents of $2.612 billion and a net debt position of approximately $23.375 billion, with total debt of about $25.987 billion and a debt-to-capitalization ratio of 42.8%. Dividend payout was approximately 40.8% of earnings, corresponding to a dividend yield of about 0.82%. The balance sheet remains solid, with a current ratio near 1.01 and an interest coverage of ~5x, underscoring liquidity and near-term debt service capacity.
Management emphasis on disciplined capital allocation and continued cash generation suggests a constructive medium-term outlook, supported by stable operating performance and balance-sheet resilience. However, the absence of explicit QQ1 2025 earnings-call guidance in the provided data limits a forward-looking stance on specific targets for 2025 beyond the quarter’s fundamentals. Should commodity prices stabilize or improve and execution remain disciplined, Occidental could further strengthen its FCF profile and modestly augment shareholder returns while funding continued capex optimization.”,