Occidental's diverse portfolio delivers first quarter success
Occidental Petroleum has announced better-than-expected first quarter profits, driven by robust production and favourable natural gas prices. The US energy company reported an adjusted profit of $0.87 per share for the first quarter of 2025, surpassing analysts' forecasts of $0.77.
The firm's total production rose nearly 19% compared to the previous year, reaching 1.39 million barrels of oil equivalent per day. This increase was largely attributed to higher output in the Rockies region and the Gulf of America.
Natural gas prices proved particularly beneficial for Occidental, with average domestic realised prices jumping 50% year-on-year to $2.42 per thousand cubic feet. The company also saw gains in natural gas liquids prices, which increased approximately 17% compared to the same period last year.
"In the first quarter, our teams' sustained focus on operational excellence unlocked additional efficiencies and supported the delivery of resilient free cash flow," said Vicki Hollub, President and Chief Executive Officer.
Occidental reported significant progress in debt reduction, making $2.3 billion in repayments year-to-date, supported by asset sales totalling $1.3 billion in the first quarter. The company has been working to reduce debt that accumulated following its acquisition of CrownRock last year.
Looking ahead, Occidental announced it would reduce its 2025 capital guidance by $200 million and cut domestic operating costs by $150 million, citing continued operational efficiency gains and schedule optimisation in key regions.
"We continue to rapidly advance towards our debt reduction goals, and we believe our deep, diverse portfolio of high-quality assets positions us for success in any market environment," Hollub added.
