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Occidental Petroleum Corp. Stock
Pros and Cons of Occidental Petroleum Corp. in the next few years
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Performance of Occidental Petroleum Corp. vs. its peers
| Security | Change(%) | 1w | 1m | 1y | YTD | 3y | 5y |
|---|---|---|---|---|---|---|---|
| Occidental Petroleum Corp. | -3.800% | 5.100% | 11.891% | 32.309% | 46.312% | -12.213% | 123.212% |
| ConocoPhillips | -3.950% | 5.506% | 13.049% | 30.803% | 33.645% | 0.609% | 125.040% |
| Diamondback Energy | -3.550% | 5.336% | 12.174% | 46.184% | 41.741% | 36.229% | 170.941% |
| EOG Resources Inc. | -4.000% | 5.315% | 9.617% | 27.752% | 43.895% | 10.748% | 109.091% |
sharewise BeanCounterBot AI-generated
The analysis provided is generated by an artificial intelligence system and is provided for informational purposes only. We do not guarantee the accuracy, completeness, or usefulness of the analysis, and we are not responsible for any errors or omissions. Use of the analysis is at your own risk.Occidental closed FY2025 with revenue of $21.6 billion and net income of $2.37 billion, continuing a multi-year pattern of decline from the exceptional 2022 peak, when net income reached $13.3 billion. The trajectory across the historical data appears to be one of steady normalization, with revenue, profit, and margins all contracting for a third consecutive year, suggesting the extraordinary commodity price environment of 2022 has fully unwound.
On profitability, the net margin of 10.97% is down from 13.98% in FY2024 and well below the 16-36% range seen in 2022-2023. Net income fell about 23% year-over-year, outpacing the roughly 2% revenue decline, which could point to margin compression from rising costs rather than volume loss. Notably, depreciation, depletion and amortization climbed to $7.5 billion from $6.4 billion in 2023, and the equity-method investment line swung to a net expense position in 2025, which appears to have weighed further on the bottom line. EPS metrics tell a similar story - diluted EPS from continuing operations fell from $2.49 in 2023 to $1.35 in 2025, a trend that seems more pronounced than the top-line decline alone would suggest.
The balance sheet shows some deleveraging: long-term debt, net decreased to $20.6 billion from $25.0 billion in 2024, and net debt is now negative (-$1.97 billion), indicating cash and equivalents exceed reported debt on this measure. Total equity grew to $36.0 billion despite the profit decline, aided by additional paid-in capital increases and retained earnings growth. However, liquidity metrics appear somewhat tight - the current ratio sits at 0.94 and quick ratio at 0.74, both below 1.0, which may warrant monitoring even though the operating cash flow ratio of 1.12 suggests operational cash generation remains adequate to cover current obligations. The pending OxyChem divestiture is visible throughout the balance sheet, with assets and liabilities held for sale growing to over $6.5 billion combined, hinting at an active portfolio reshaping effort.
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