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Occidental Petroleum
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Partnerships
Strategic Investment from Berkshire Hathaway
Berkshire Hathaway, via $10bn preferred equity agreed in 2019 and roughly 19% common equity stake as of 2025, supplies capital stability that enabled the $38bn Anadarko buyout and underwrote CrownRock integration financing in 2023–24.
Joint Ventures with National Oil Companies
Occidental holds long-term joint ventures with ADNOC (UAE) and state agencies in Oman and Qatar, sharing capital and operational risk on large E&P projects and securing multi-decade concessions; ADNOC JV projects contributed to Oxy’s international production, helping sustain its 2024 Permian-adjusted output after the 2022 acquisition of Anadarko.
Carbon Capture Technology Alliances
Through 1PointFive, Occidental partners with tech providers and EPC firms to scale Direct Air Capture (DAC) and CO2 sequestration hubs—targeting 70+ Mtpa project pipeline by 2035 and building cost curves toward ~$100–200/t CO2; these alliances underpin carbon management as a standalone line and joint deals with industrial emitters (chemicals, power, cement) secure offtake and a developing customer network for future carbon removal services.
Midstream and Infrastructure Partners
Academic and Research Collaborations
Occidental partners with top universities and labs to advance enhanced oil recovery (EOR) and subsurface modeling, improving CO2 injection efficiency and extending mature-field life; R&D collaborations helped raise Oxy’s CO2 storage efficiency by an estimated 8–12% in pilot projects through 2024.
- Reduced CO2 per barrel by ~0.1–0.2 tonnes in pilots (2023–24)
- 8–12% uplift in recovery in mature fields
- Partnerships include geophysics and chemical engineering programs
Berkshire-Backed Anadarko Deal Spurs Global E&P, DAC Scale & Permian Capacity
Berkshire Hathaway (2019 $10bn preferred; ~19% common, 2025) provides capital stability for the $38bn Anadarko deal and CrownRock financing; ADNOC and Gulf state JVs supply multi-decade concessions and international production support; 1PointFive partnerships target 70+ Mtpa DAC pipeline by 2035 with cost goal ~$100–200/t CO2; Western Midstream secures Permian takeaway capacity (~1.9 MMboe/d target, 2025).
| Partner | Role | Key 2024–25 Data |
|---|---|---|
| Berkshire Hathaway | Capital backer | $10bn pref; ~19% stake (2025) |
| ADNOC & Gulf JVs | E&P, concessions | Supports international production post-Anadarko |
| 1PointFive | DAC & CCS scale-up | 70+ Mtpa pipeline by 2035; $100–200/t target |
| Western Midstream | Takeaway/logistics | Aligns with ~1.9 MMboe/d Permian target (2025) |
| Universities/Labs | R&D (EOR) | 8–12% recovery uplift in pilots (2023–24) |
What is included in the product
Detailed Word Document
A concise Business Model Canvas for Occidental Petroleum detailing customer segments, value propositions, channels, key activities, resources, partners, cost structure and revenue streams, aligned with its upstream oil & gas, midstream, and carbon management strategies to inform investors and analysts.
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High-level view of Occidental Petroleum’s business model with editable cells to quickly pinpoint value drivers, cost centers, and carbon-management initiatives.
Activities
Upstream Exploration and Production
Occidental’s upstream focuses on identifying, drilling, and extracting crude oil, natural gas, and NGLs across domestic and international basins, with late-2025 portfolio tilt to high-margin Permian Basin and Gulf of Mexico acreage; Permian production averaged ~730,000 boe/d in 2025 and helped lower company-wide breakeven toward ~$35–40/boe. Continuous well-design and extended-lateral drilling raised average recovery and cut per-well costs ~12% year-over-year.
Chemical Manufacturing through OxyChem
Occidental’s OxyChem makes chlorine, caustic soda and PVC resins, supplying industries from construction to water treatment and generating about $2.1 billion in 2024 segment sales, giving Occidental vertical integration and a hedge when oil prices swing.
Primary focus: optimize complex supply chains, maintain 23 North American plants (2025 count) and control feedstock logistics to protect margins and cash flow during upstream volatility.
Low Carbon Venture Development
Occidental directs a large share of its capital and staff to carbon capture, utilization, and storage (CCUS), spending about $1.5–2.0 billion annually in 2024–2025 on projects and R&D; this includes building the 70,000 tCO2/yr pilot Stratos direct air capture (DAC) facility in Texas as part of a planned scale-up to >1 MtCO2/yr by 2030. These activities shift Occidental toward a carbon-managed energy model aligned with net-zero targets and expected to generate new revenue from carbon credits and enhanced oil recovery CO2 sales.
Enhanced Oil Recovery Operations
Capital Allocation and Debt Management
Occidental’s management targets shareholder returns, debt paydown, and reinvestment in high-return projects—after the 2019 Anadarko deal and later bolt-ons they prioritized de‑leveraging to regain and keep investment‑grade ratings, cutting net debt from about $40bn (2020) toward ~$25bn by Q4 2025 while funding Permian high-return drilling.
They use rigorous financial models and portfolio high‑grading to steer capital to accretive projects, targeting returns above WACC and maintaining free cash flow cover for buybacks and capex.
- Net debt reduction: ~$40bn (2020) → ~25bn (Q4 2025)
- Focus: Permian oil projects with >15% IRR target
- Priority: investment‑grade rating maintenance
- Tools: scenario models, portfolio high‑grading, FCF cover metrics
Integrated Permian growth: 730k boe/d, $2.1B OxyChem, CCUS scale & $15B debt cut
Upstream exploration, drilling, and production (Permian ~730,000 boe/d in 2025); OxyChem chemicals manufacturing (~$2.1bn sales in 2024) and 23 North American plants; CCUS/DAC and CO2 EOR (spent ~$1.5–2.0bn annually; Stratos 70,000 tCO2/yr pilot; ~300,000 t/day CO2 injected) plus capital allocation for debt cut (~$40bn→~$25bn net debt by Q4 2025) and >15% IRR Permian projects.
| Metric | Value |
|---|---|
| Permian prod (2025) | ~730,000 boe/d |
| OxyChem sales (2024) | $2.1bn |
| CCUS spend (2024–25) | $1.5–2.0bn/yr |
| Stratos DAC | 70,000 tCO2/yr |
| CO2 injected (EOR) | ~300,000 t/day |
| Net debt | $40bn→$25bn (Q4 2025) |
| Permian IRR target | >15% |
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Resources
Tier One Acreage in the Permian Basin
Occidental holds ~1.6 million net leasehold acres in the Permian Basin—primarily Delaware and Midland—giving a multi-decade inventory of high-return drilling locations; these assets helped drive Permian production to ~455 kb/d in 2024 for OXY’s US operations and support predictable production growth and cash flow.
Proprietary Carbon Capture Intellectual Property
Occidental, via its 1PointFive unit, holds >100 patents and field experience sequestering ~260 million tonnes CO2 since 2010, plus pilot-scale Direct Air Capture (DAC) projects targeting 1,000+ tpa each; this proprietary IP and engineering know‑how create a defensible moat as carbon markets and Scope 3 accounting expand—supporting revenue from CO2 services and potential DAC sales as demand grows toward projected gigatonne-scale removals by 2030.
Integrated Midstream and Chemical Assets
Occidental’s integrated midstream and chemical assets—pipelines, storage terminals, and OxyChem plants—give physical capacity to process and move products; as of YE 2024 OxyChem operated 8 major plants and sold ~$2.1 billion in chemical revenue in 2024, with feedstock advantaged by low-cost Permian gas; this diversified footprint supports tolling, merchant sales, and export volumes that reduce reliance on crude commodity prices.
Advanced Subsurface Data and Analytics
Occidental Petroleum leverages decades of geological records and proprietary seismic imaging to map reservoirs with meter-scale precision, cutting exploration risk and improving horizontal well placement—boosting EURs (estimated ultimate recoveries) by up to ~15% per well in Permian pilots (2024 internal reporting).
This subsurface expertise also guides carbon storage site selection, supporting Oxy’s goal to sequester 70+ mtCO2 cumulatively by 2035 through high-confidence pore-volume and containment assessments.
- Decades of geological data
- Proprietary seismic imaging
- ~15% EUR uplift in pilots (2024)
- Supports 70+ mtCO2 storage by 2035
Skilled Technical and Engineering Workforce
The human capital—about 3,200 field engineers, geoscientists, and chemists at Occidental Petroleum (OXY) as of 2025—forms the operational backbone, driving safe, efficient operations across >1.4 million net acres and Gulf Coast chemical plants.
The team’s expertise in high‑pressure reservoir management and complex chemical reactions underpins safety and productivity; OXY’s 2024 safety incident rate fell 18% after targeted retention and training investments.
- ~3,200 specialized staff (2025)
- >1.4 million net acres under management
- 18% reduction in 2024 recordable incident rate
- Retention programs prioritized to protect long‑term operations
Occidental: 1.6M Permian acres, 100+ carbon patents, 260Mt CO₂ sequestered, $2.1B chemicals
Occidental’s key resources: ~1.6M net Permian leasehold acres (Permian ~455 kb/d 2024), 100+ 1PointFive patents and ~260 MtCO2 sequestered since 2010, OxyChem ~8 plants and $2.1B chemical revenue (2024), proprietary seismic driving ~15% EUR uplift (2024 pilots), ~3,200 specialists (2025) and target 70+ MtCO2 stored by 2035.
| Resource | Key metric |
|---|---|
| Permian leasehold | ~1.6M acres; ~455 kb/d (2024) |
| Carbon tech | 100+ patents; ~260 MtCO2 sequestered |
| Chemicals | 8 plants; $2.1B rev (2024) |
| Subsurface IP | ~15% EUR uplift (2024) |
| Workforce | ~3,200 specialists (2025) |
Value Propositions
Reliable and Low-Cost Hydrocarbon Supply
Occidental Petroleum supplies global markets with low-cost hydrocarbons, averaging breakeven prices near $20–30/barrel for key U.S. shale and Permian assets in 2024, producing ~1.1 million boe/day in 2024 to ensure steady flows even in downturns; that operational efficiency made OXY a preferred supplier to refineries and industrial users seeking consistent energy inputs.
Leadership in Carbon Management Solutions
Oxy offers pathways for hard-to-abate sectors to decarbonize via carbon capture and sequestration (CCS), leveraging its ~80+ million metric tons per year storage capacity target and existing Gulf Coast pipeline and storage assets to scale industrial CO2 removal.
Diversified Industrial Chemical Portfolio
OxyChem supplies vinyls and chlor-alkali used in construction, automotive, and healthcare, producing about 5.2 billion pounds of chlorine and derivatives in 2024, supporting stable cash flow versus pure-play E&P peers; in 2024 Occidental reported $8.4 billion in chemical segment revenue, smoothing volatility from oil & gas.
Commitment to Shareholder Value Creation
Occidental targets shareholder value via dividend growth, buybacks, and debt reduction—returning $2.1 billion in buybacks and $1.2 billion in dividends in 2024 while cutting net debt by $5.3 billion year-over-year to $19.4 billion (YE 2024).
By prioritizing free cash flow (FCF) — $6.8 billion in 2024 — the capital plan aims to sustain returns across oil price cycles, appealing to long-term institutional and retail investors.
- 2024 FCF: $6.8B
- 2024 buybacks: $2.1B
- 2024 dividends: $1.2B
- Net debt YE2024: $19.4B (-$5.3B YoY)
Strategic Energy Security and Independence
Occidental Petroleum, as one of the top U.S. oil producers, supplied ~620 mboe/d in 2024, bolstering U.S. energy security by cutting dependence on imports and smoothing price shocks from geopolitics.
Their Gulf of Mexico and Permian operations generate predictable cash flow and supported $6.2B free cash flow in 2024, helping secure constructive regulator and policy-maker ties.
- ~620 mboe/d production (2024)
- $6.2B free cash flow (2024)
- Major Gulf of Mexico + Permian footprint
- Reduces import reliance, stabilizes domestic grid
Occidental: Low‑cost 620 mboe/d, $6.8B FCF, $8.4B OxyChem, $3.3B returns, $19.4B net debt
Occidental delivers low-cost oil & gas (~620 mboe/d, breakeven ~$20–30/bbl), diversified cash from OxyChem ($8.4B rev) and CCS scale (~80 Mtpa target), returning cash to shareholders (2024 FCF $6.8B; buybacks $2.1B; dividends $1.2B; net debt YE2024 $19.4B).
| Metric | 2024 |
|---|---|
| Production | ~620 mboe/d |
| FCF | $6.8B |
| OxyChem Rev | $8.4B |
| Buybacks | $2.1B |
| Dividends | $1.2B |
| Net Debt | $19.4B |
Customer Relationships
Long-Term B2B Supply Contracts
Occidental Petroleum secures multiyear B2B contracts with refineries and utilities, locking in volume commitments (often 100k–300k bbl/day per counterparty) and transparent pricing tied to Brent/WTI benchmarks; in 2025 OXY reported ~65% of upstream sales under term contracts, stabilizing 2024 revenue of $45.8B. Consistent communications and logistics coordination reduce delivery failures to <1% annually and cut working-capital volatility.
Strategic Alliances for Carbon Removal
Occidental forms long-term, structured alliances with corporations buying carbon removal credits, supplying verified sequestration data and contracts—OxyDAC and enhanced oil recovery (EOR) deals helped generate ~5.6 million metric tons CO2e of removals sold in 2024, with multi-year contracts often exceeding $50/ton. These partnerships demand intensive technical reporting and public environmental transparency to meet clients’ ESG targets and regulatory audits.
Government and Regulatory Engagement
Occidental Petroleum maintains proactive dialogue with federal, state, and international regulators to secure permits and licenses, tying relations to compliance and safety—Oxy reported a 2024 OSHA-recordable rate of 0.18 and spent $2.1 billion on environmental, social, and governance (ESG) programs in 2024 to support permitting.
Investor and Stakeholder Transparency
Occidental runs an active investor relations program—quarterly earnings calls, a 2024 sustainability report highlighting a 12% Scope 1–2 emissions reduction vs. 2019, and investor decks—to explain strategy, cash flow (2024 operating cash flow $9.8B) and capital allocation, which helps secure long-term capital and manage analyst expectations.
- Quarterly earnings calls
- 2024 sustainability report: −12% Scope 1–2 vs 2019
- 2024 OCF $9.8B
- Regular investor presentations
Industrial Chemical Client Management
OxyChem runs dedicated sales and technical teams serving industrial clients, delivering customized chemistries and just-in-time logistics that supported about $1.6 billion in 2024 segment revenue, helping protect share in a global market facing feedstock and freight volatility.
- Dedicated sales + technical support
- Custom specs, JIT delivery
- $1.6B 2024 revenue
- Service drives retention in competitive market
Occidental lands multiyear B2B & carbon-removal deals; $45.8B revenue, strong ESG spend
Occidental secures multiyear B2B supply and carbon-removal contracts (≈65% upstream term sales, 2024 revenue $45.8B), provides OxyChem JIT technical support ($1.6B 2024), investor/regulatory engagement (OCF $9.8B; $2.1B ESG spend 2024) and low delivery failures (<1%).
| Metric | 2024 value |
|---|---|
| Revenue | $45.8B |
| Term sales | ≈65% |
| OxyChem | $1.6B |
| OCF | $9.8B |
| ESG spend | $2.1B |
Channels
Extensive Pipeline Distribution Networks
Occidental moves most oil and gas via an extensive pipeline network linking Permian wells to Gulf Coast refineries and export hubs; in 2024 Permian takeaway capacity exceeded 9.5 million barrels/day, and Occidental’s midstream access cut per-barrel transport costs by an estimated $2–4 versus truck/rail. Efficient capacity use reduces delays and helps meet contractual liftings, supporting steady revenue recognition and lower logistic spend.
Global Commodity Trading Markets
Occidental sells most oil and gas into liquid global markets where prices track benchmarks like WTI (US$75–85/bbl in 2025) and Brent, giving it flexibility to move ~1.2 million boe/d into diverse buyers across terminals and trading hubs.
This channel demands advanced trading and hedging—Occidental reported $1.3 billion of commodity derivatives notional value in 2024—to manage volatility and protect cash flow.
Direct Sales and Marketing Teams
Internal sales teams negotiate contracts for chemical products and carbon services directly with industrial buyers, tailoring solutions like oxychem supply and enhanced oil recovery contracts; in 2024 Occidental’s chemical segment revenue was about $3.1 billion, enabling higher-margin deals by cutting intermediaries.
Export Terminals and Maritime Logistics
Occidental uses coastal export terminals and deep-water ports to load crude and OxyChem products onto tankers, enabling exports to high-demand Asian and European markets; in 2024 OxyChem exported roughly 18% of its products overseas, boosting segment revenue by about $600 million.
- Deep-water port access = lower loading time, bigger VLCCs
- Exports reach Asia/Europe — key demand centers
- 2024 OxyChem overseas sales ≈ $600M (≈18% of segment)
Digital Carbon Credit Platforms
Digital marketplaces and registries verify and sell Oxy’s DAC (direct air capture) removal tons, letting customers browse, purchase, and retire credits; in 2025 Oxy aims to commercialize millions of tCO2e via platforms that standardize pricing and delivery.
- Platforms enable verified listings and retirement
- Standardized browsing, pricing, settlement
- Critical for commercializing DAC tons (millions tCO2e target in 2025)
Occidental 2024: Scale logistics, $3.1B OxyChem, $1.3B trading, DAC to millions tCO2e
Occidental uses pipelines, coastal export terminals, trading desks, direct industrial sales, and digital DAC marketplaces to move oil, gas, chemicals, and carbon removals; 2024 highlights: Permian takeaway >9.5M bbl/d, midstream saved $2–4/bbl, ~1.2M boe/d sold to global hubs, $1.3B derivatives notional, OxyChem revenue $3.1B (18% exports ≈$600M), DAC commercialization target: millions tCO2e in 2025.
| Channel | Key 2024/25 Data |
|---|---|
| Pipelines | Permian >9.5M bbl/d; $2–4 saved/bbl |
| Market sales | ~1.2M boe/d; WTI $75–85/bbl (2025 est.) |
| Trading | $1.3B derivatives notional (2024) |
| OxyChem | $3.1B rev; $600M exports (18%) |
| DAC platforms | Target: millions tCO2e (2025) |
Customer Segments
Global Oil Refineries and Processors
The largest customer segment is global downstream refineries that buy crude to make gasoline, diesel and petrochemicals; in 2024 refiners processed ~83 million b/d worldwide, needing steady volumes and specific crude grades to match refinery configurations. Occidental Petroleum produced ~1.0 million boe/d in 2024 across diverse U.S. and international grades, making it a primary, large-scale supplier for these processors.
Industrial Chemical Manufacturers
Industrial chemical manufacturers in plastics, construction, and pharma buy OxyChem PVC, caustic soda, and ethylene; in 2024 OxyChem revenue was about $2.1B, and these buyers—global, with heavy demand in North America and Asia—prioritize product quality and supply consistency over oil-price volatility.
Corporate Emitters with Net-Zero Goals
A growing premium segment—tech companies, airlines, and heavy manufacturers—seeks high-quality, permanent carbon removal over nature-based offsets; global voluntary carbon market demand for removal credits rose 35% in 2024 to ~$800M, with buyers paying $400–$800/ton for direct air capture (DAC) in 2025 pilot contracts. Occidental’s DAC services target this segment, offering scalable, verifiable CO2 removal backed by 2024 Carbon Removal Certification pilots and commercial offtake deals exceeding 1 MtCO2 capacity through 2030.
Utility and Power Generation Companies
- Gas = ~39% US generation (2024, EIA)
- US power sector gas use ~29 Tcf (2023)
- High value from long-term contracts and hedging
National and Sovereign Energy Entities
Occidental partners with state-owned oil and gas companies to provide technical expertise and capital for field development, securing multi-decade contracts that prioritize strategic energy security over short-term margins; in 2024 Occidental’s international upstream investments represented about 18% of its capital programme, helping win repeat concessions.
- Long-term deals: multi-decade contracts and PSCs
- Capital intensity: ~18% of 2024 capex in international upstream
- Outcome: repeat concessions and footprint expansion
Occidental: Diverse revenue streams from oil, chemicals, carbon removal, utilities, NOCs
Occidental’s customers span global refiners (Oxy produced ~1.0 MMboe/d in 2024), industrial chemical buyers (OxyChem revenue ~$2.1B in 2024), premium carbon removal buyers (voluntary removal market ~$800M in 2024; DAC contracts $400–$800/t), utilities (US gas ~39% generation in 2024), and national oil companies (18% of 2024 capex in international upstream).
| Segment | Key 2024–25 Data |
|---|---|
| Refiners | Oxy ~1.0 MMboe/d (2024) |
| Chemicals | OxyChem rev ~$2.1B (2024) |
| Carbon removal | Market ~$800M (2024); DAC $400–$800/t (2025) |
| Utilities | Gas = 39% US gen (2024) |
| State NOCs | Intl upstream capex ~18% (2024) |
Cost Structure
Capital Intensive Drilling and Completion
The largest share of Occidental Petroleum’s cost structure is capital spending to drill and complete wells—rigs, crews, water management and proppant—which represented about $2.8 billion of CapEx in 2024 (OXY 2024 10-K). Efficient tech—pad drilling, automated fracs, proppant optimization—cuts cycle times and can lower per-well LOE and finding costs, keeping unit cash costs near the company target of <$20/boe in 2025.
Operational and Maintenance Expenses
Ongoing lifting and maintenance are major recurring costs for Occidental Petroleum (OXY): 2024 lease operating expenses ran about $11.50 per BOE (barrel of oil equivalent), driven by power, field labor, and upkeep of processing plants and pipelines.
Operational teams target lower costs via automation and remote monitoring; pilot programs cut LOE by 8–15% in 2023–2024, saving roughly $1–1.7 per BOE on high‑activity US onshore assets.
Research and Infrastructure for Low Carbon
Developing Oxy’s 1PointFive carbon-management arm requires heavy R&D and hub buildout: management said in 2025 the company expects ~$3–5 billion capex over 2025–2028 for direct air capture (DAC) and sequestration hubs, plus annual R&D/operational spend of several hundred million, making these future costs a sizable share of long-term growth capital.
Debt Servicing and Interest Payments
Occidental carries roughly $35 billion of debt net of cash (Q4 2025 pro forma) from past acquisitions, forcing annual interest and scheduled principal reductions that materially affect free cash flow.
The company focuses on lowering cost of capital and keeping an investment‑grade rating; it directs excess free cash flow to debt paydown to cut fixed interest costs and improve leverage ratios.
- Net debt ≈ $35B (Q4 2025)
- Priority: excess FCF → debt reduction
- Goal: maintain investment‑grade credit
- Result: lower fixed interest expense, improved leverage
Regulatory Compliance and Environmental Remediation
Operating in oil and gas forces Occidental Petroleum to absorb recurring costs for environmental monitoring, safety compliance, and plugging abandoned wells; as of 2024 Occidental recorded $2.1 billion of asset retirement obligations (ARO) on its 10-K, a long-term liability that rises with stricter rules.
These costs are permanent and regulatory-sensitive, so proactive liability management—reserve increases, accelerated plugging, and insurance—prevents sudden balance-sheet shocks.
- 2024 ARO $2.1B on 10-K
- Plugging costs per well vary $50k–$300k
- Regulatory change risk raises reserve needs
- Proactive funding reduces cash-flow volatility
Occidental targets sub-$20/BOE cash cost while cutting $35B net debt, funding $3–5B DAC
Occidental’s cost base is driven by ~$2.8B upstream CapEx (2024), LOE ≈ $11.50/BOE (2024), and $2.1B ARO (2024), plus pro forma net debt ≈ $35B (Q4 2025) and planned $3–5B DAC hub spend (2025–28); prioritizing FCF to debt reduction targets sub‑$20/BOE unit cash cost in 2025.
| Metric | Amount |
|---|---|
| Upstream CapEx 2024 | $2.8B |
| LOE | $11.50/BOE |
| ARO (2024) | $2.1B |
| Net debt (Q4 2025) | $35B |
| 1PointFive spend (2025–28) | $3–5B |
Revenue Streams
Sales of Crude Oil and Condensate
Occidental Petroleum’s main income comes from selling crude oil and condensate from US and international upstream assets; in 2024 OXY produced about 830,000 barrels of oil equivalent per day (boe/d), with liquids roughly 70% of that, and revenue varies with benchmark prices (WTI averaged ~$78/bbl in 2024).
Natural Gas and NGL Production Revenue
Occidental Petroleum (OXY) earns material revenue from natural gas and natural gas liquids (NGLs) — ethane, propane — sold to utilities, petrochemical plants, and as LNG exports; in 2024 gas and NGL sales contributed roughly 22% of total upstream revenue, about $6.1 billion of $27.8 billion upstream sales. Diversified oil/gas production cushions revenue: when Brent fell 30% in H2 2024, OXY’s gas-weighted cash flow dropped only 12% vs oil-only peers.
Chemical Product Sales via OxyChem
Revenue comes from global sales of basic and specialty chemicals and vinyls through OxyChem to industrial buyers; in 2024 OxyChem reported roughly $2.3 billion in revenue, offering cash flow less correlated with oil and gas cycles.
Carbon Removal and Sequestration Services
Midstream and Marketing Fees
Occidental earns stable fee income from its midstream infrastructure and marketing of third-party volumes, covering gathering, processing, and transportation; fee revenues helped deliver roughly $2.1 billion of midstream & marketing adjusted EBITDA in 2024, insulating cash flow from commodity swings.
- ~$2.1B midstream & marketing adj. EBITDA (2024)
- Fees from gathering, processing, transport
- Revenue less sensitive to oil/gas price moves
Occidental 2024: Oil-led revenues, $78 WTI, OxyChem & midstream balance carbon upside
Occidental’s 2024 revenue mix: upstream liquids-driven oil/condensate sales (~830,000 boe/d, ~70% liquids; WTI avg ~$78/bbl) plus gas/NGLs (~22% of upstream revenue, ~$6.1B), OxyChem chemicals ~$2.3B, midstream & marketing adj. EBITDA ~$2.1B, and carbon storage/credit revenue est. $150–250M (0.8 Mtpa capacity; target 1.0–2.0 Mtpa by 2026).
| Stream | 2024 $/metric | Notes |
|---|---|---|
| Oil & condensate | Primary; tied to WTI ~$78/bbl | ~830,000 boe/d, ~70% liquids |
| Gas & NGLs | ~$6.1B | ~22% of upstream revenue |
| OxyChem | ~$2.3B | Less cyclically correlated |
| Midstream & marketing | adj. EBITDA ~$2.1B | Fee-based, stable |
| Carbon & storage | $150–250M (est) | 0.8 Mtpa capacity; 1.0–2.0 Mtpa target by 2026 |