Occidental Petroleum (0KAK.L) Q3 2024 Earnings Report

Occidental Petroleum reported a solid QQ3 2024 performance characterized by robust EBITDA generation and meaningful free cash flow, reflecting disciplined cost management and a favorable oil/gas price environment for the quarter. Revenue of $7.087 billion was modestly down year-over-year (-0.99%) but up quarter-over-quarter (+3.08%), driven by a favorable mix and ongoing cost discipline. Gross profit stood at $2.601 billion, with an EBITDA of $3.832 billion and operating income of $1.743 billion, supporting a healthy operating margin of approximately 24.6% for the period. Net income came in at $1.128 billion and diluted earnings per share (EPS) at $0.983, illustrating resilient profitability despite cyclical headwinds in the broader energy market.

Cash generation remained a key strength, with cash flow provided by operating activities of $3.682 billion and free cash flow (FCF) of $2.023 billion. Capital expenditures totaled $1.659 billion in QQ3 2024, underscoring continued investment in core assets while preserving capital discipline. The balance sheet shows a strong liquidity position, with cash and cash equivalents around $1.76–$1.79 billion and total debt of roughly $27.65 billion, yielding a net debt position of about $25.89 billion. Key leverage metrics remained manageable: debt-to-capitalization around 44%, interest coverage of 5.6x, and a net debt to EBITDA framework that supports financial flexibility in a volatile price environment. The company’s valuation metrics—P/E ~10.5x, EV/EBITDA ~19.2x, and a dividend yield near 0.8%—suggest a balance between growth optionality and conservative capital allocation in a cyclical sector.

Overall, Occidental’s QQ3 2024 results reflect a capital‑allocation strategy focused on sustaining high-quality EBITDA, generating durable FCF, and gradually deleveraging while maintaining optionality in a commodity‑driven market. The primary uncertainties remain commodity price and production headwinds, but the current data indicate a favorable near-term cash generation profile and a solid balance sheet to navigate the cycle.