Occidental Petroleum Corporation (OXY): Business Model Canvas [Dec-2025 Updated]

You're looking at Occidental Petroleum Corporation not just as an oil giant, but as a company making a massive, calculated pivot, and honestly, it's fascinating to watch. After years of high leverage, the strategy now centers on dominating the high-margin Permian Basin while simultaneously building out a world-leading carbon management arm-think their flagship STRATOS Direct Air Capture facility coming online mid-2025. This isn't just talk; they are backing it with a $7.1 billion to $7.3 billion capital plan for 2025 while pushing debt below $15 billion. So, how does this dual focus on short-cycle hydrocarbons and long-term carbon removal actually translate into revenue streams, like the $5.4 billion they pulled in from oil sales in Q3 2025? Let's break down the entire Business Model Canvas to see if this strategy is built to last.

Occidental Petroleum Corporation (OXY) - Canvas Business Model: Key Partnerships

You're looking at the network of alliances Occidental Petroleum Corporation (OXY) relies on to execute its dual strategy of traditional energy production and low-carbon technology scaling. These are the firms that provide capital, technology, infrastructure, and guaranteed offtake for their most ambitious projects.

The partnerships are critical for de-risking the massive capital requirements of Direct Air Capture (DAC) and Carbon Capture and Storage (CCS) deployment.

ADNOC's XRG for joint Direct Air Capture (DAC) facility development in South Texas

Occidental Petroleum and its subsidiary 1PointFive are evaluating a joint venture with XRG, the investment company of ADNOC, for a South Texas DAC facility. XRG is considering an investment of up to $500 million for this project. The planned facility is designed to capture 500,000 tonnes of carbon dioxide per year. This site, located on King Ranch in Kleberg County, has the potential to store up to 3 billion tonnes of CO2 in geologic formations. This effort builds on Occidental's progress with its first DAC facility, STRATOS, which is on track to begin commercial operations in 2025. Furthermore, Occidental has secured an award from the U.S. Department of Energy of up to $650 million to support the development of this South Texas DAC Hub.

Sonatrach for gas production modernization and Carbon Capture and Storage (CCS) exploration in Algeria

Occidental Petroleum pledged $3 billion to modernize Sonatrach's gas production and export infrastructure in Algeria. This investment targets boosting Algeria's LNG output, currently around 12 million tons per year, and exploring CCS technologies. A key component is a $5 billion Sahara-based project integrating renewables with CCUS.

1PointFive, a subsidiary, for commercializing DAC technology and carbon removal credits

1PointFive is the platform commercializing Occidental's DAC technology and carbon removal credits. As of April 2025, 1PointFive had sold 1.3 million tons of carbon removal services, making it the largest DAC purveyor. The STRATOS facility in West Texas is designed to capture up to 500,000 metric tons of carbon dioxide annually when fully operational. Microsoft's agreement with 1PointFive was for 500,000 tons of carbon removal credits. 1PointFive has a scenario to deploy 70 DAC facilities worldwide by 2035.

Western Midstream Partners (WES) for midstream services and flow assurance

Occidental Petroleum maintains a significant interest in Western Midstream Partners, LP (WES), owning 44.8% as of April 30, 2025. WES operates extensive energy infrastructure, including approximately 14,000 miles of pipeline. For the first quarter of 2025, WES reported Adjusted EBITDA of $593.6 million and announced a distribution of $0.910 per unit. The market capitalization for WES was approximately $14 B as of April 30, 2025.

You can see the scale of this relationship in the throughput data from WES's Q1 2025 results:

The throughput figures are from WES Q1 2025 actuals, excluding certain noncontrolling interests.

CF Industries for a low-carbon ammonia offtake agreement enabled by CCS

1PointFive entered a 25-year offtake agreement with a joint venture involving CF Industries, JERA Co., Inc., and Mitsui & Co., Ltd.. This agreement covers the sequestration of approximately 2.3 million metric tons of CO₂ per year from CF Industries' Bluepoint low-carbon ammonia production facility in Louisiana. The JV is constructing an ammonia production facility with an annual nameplate capacity of about 1.4 million metric tons. The total estimated cost for this ammonia facility is approximately $4 billion, funded by the partners according to their ownership stakes. CF Industries holds a 40% ownership in this joint venture.

Here's a breakdown of the JV structure and scale:

• Estimated total facility cost: $4 billion
• Annual low-carbon ammonia capacity: Approximately 1.4 million metric tons
• CO2 sequestered annually via 1PointFive: Approximately 2.3 million metric tons
• CF Industries ownership stake: 40%
• Expected low-carbon ammonia production start: 2029

CF Industries will invest approximately $550 million for its own storage and loading facilities at the Blue Point site and will receive ongoing services revenue from the JV.

Finance: draft 13-week cash view by Friday.

Occidental Petroleum Corporation (OXY) - Canvas Business Model: Key Activities

You're looking at the core actions Occidental Petroleum Corporation (OXY) is taking right now to run the business and transform its profile. It's a dual focus: maximizing the core oil and gas business while aggressively building out the low-carbon segment. Here's a breakdown of the required activities, grounded in the latest numbers available as of late 2025.

High-efficiency oil and gas exploration and production in the Permian Basin

The Permian Basin remains the financial engine, but the activity is centered on efficiency gains, not just brute force drilling. The company reported record oil and gas production of approximately 1.47 million barrels of oil equivalent per day (BOE per day) in the third quarter of 2025, with the Permian Basin alone delivering 800,000 BOE per day, the highest quarterly Permian production in Occidental Petroleum Corporation history. This efficiency is measurable:

• New well performance in the Barnett is outperforming the industry average by 18% since 2020.
• Midland Basin new wells show a 22% increase in 6-month cumulative oil production per 1,000 feet since 2023.
• Well costs have seen a 38% reduction since 2022.
• The Permian resource base accounts for approximately 70% of Occidental Petroleum Corporation's total resources, following a $2.5 billion BOE expansion in the area.

The focus on the Permian is clear in capital allocation; 75% of the dedicated oil and gas capital budget is directed there.

Operating and expanding the flagship STRATOS Direct Air Capture facility (operational mid-2025)

The STRATOS Direct Air Capture (DAC) facility is the cornerstone of the low-carbon pivot. Commercial operations are targeted to commence by the end of 2025. This facility, located in Ector County, Texas, is designed to capture up to 500,000 metric tons of CO2 per year. Some reports indicate an initial capacity of 250,000 tons per annum by mid-2025, with expansion to 500,000 tons per year by 2026. The project represents a greater than $1 billion commitment. As of the third quarter earnings call, two STRATOS capture trains had moved over to operations and initiated wet commissioning with water circulation. This project is supported by a dedicated internal capital allocation of $450 million net for the Low Carbon Ventures division in 2025.

Managing and optimizing the extensive CO2 infrastructure for Enhanced Oil Recovery (EOR)

Occidental Petroleum Corporation is actively managing its CO2 infrastructure to link its legacy business with its future one. Captured CO2 from DAC facilities like STRATOS will be either sequestered underground or utilized for Enhanced Oil Recovery (EOR). The continuation of the U.S. 45Q tax incentive provides a supportive regulatory environment for both storage and utilization pathways like DAC to EOR. This integration is key to making the carbon capture process economically viable by boosting oil recovery from mature reservoirs.

Executing a $7.1 billion to $7.3 billion capital expenditure plan for 2025

The company is executing a disciplined capital plan for 2025, which is anchored in high-return oil and gas development and low-carbon innovation. The total planned investment is between $7.1 billion and $7.3 billion. This spending is strategically split between the two main operational pillars, as detailed in the allocation below.

The company also noted domestic operating cost reductions of $150 million to bolster free cash flow.

Deleveraging the balance sheet, targeting principal debt below $15 billion post-divestiture

A central activity is strengthening the balance sheet through debt reduction, significantly aided by the sale of OxyChem. The company is targeting a principal debt level of below $15 billion following the divestiture. In the third quarter of 2025, Occidental Petroleum Corporation repaid $1.3 billion in debt, bringing the principal debt down to $20.8 billion at that time. The proceeds from the OxyChem sale, anticipated to be approximately $8 billion in total, with about $6.5 billion planned for debt reduction, are pivotal to hitting this target. This deleveraging is expected to lower annual interest expense by more than $350 million.

Occidental Petroleum Corporation (OXY) - Canvas Business Model: Key Resources

You're looking at the core assets that power Occidental Petroleum Corporation's entire operation as of late 2025. These aren't just line items; they are the physical and intellectual foundations that drive their financial performance and strategic bets, especially in low-carbon ventures.

The upstream foundation remains the massive, high-quality acreage position, particularly in the Permian Basin. Occidental Petroleum Corporation is recognized as one of the largest acreage holders in that region. Specifically, their combined Permian Basin portfolio, which includes both conventional and unconventional plays, stands at approximately 2.8 million net acres in Texas and New Mexico. This scale is critical; for instance, in the third quarter of 2025, the Permian segment delivered a quarterly record production of 800 Mboed (thousand barrels of oil equivalent per day). This concentration in a low-break-even basin is a significant, high-margin resource.

The proved reserves base provides the long-term inventory to support production targets. As of year-end 2024, Occidental Petroleum Corporation's worldwide proved reserves totaled 4.6 billion barrels of oil equivalent (BOE). This figure was up from 4.0 billion BOE at the end of the prior year, driven in part by the CrownRock Acquisition and extensions in the Permian Basin. That 2024 performance showed a Reserves Replacement - All-In ratio of 230%.

Here's a quick look at some of the most critical tangible and financial resources as of the third quarter of 2025:

A key differentiator for Occidental Petroleum Corporation is its investment in proprietary Direct Air Capture (DAC) technology, stemming from the acquisitions of Carbon Engineering and Holocene. This is not just R&D; it's becoming operationalized infrastructure. The STRATOS direct air capture facility in Ector County, Texas, is a prime example. This facility is designed to capture up to 500,000 tonnes of CO2 annually. The strategic importance of this asset is underscored by the fact that Occidental and its subsidiary, 1PointFive, secured the first-ever EPA Class VI permits specifically for sequestering CO2 from a DAC project. This facility is on-track to start commercial operations in 2025.

This DAC capability is directly linked to their large-scale CO2 pipelines and sequestration hubs. The Class VI permits, issued under the Safe Drinking Water Act's Underground Injection Control program, are the regulatory key to unlocking the durability and scale of their carbon management strategy. These permits allow for the secure storage of captured CO2 in geologic formations more than one mile underground. The company is leveraging its existing expertise in managing large quantities of CO2, which it has historically used in its Enhanced Oil Recovery (EOR) operations, to support these new low-carbon ventures.

The operational output from these core resources is clear in the recent financials. The strong operational execution in Q3 2025 generated that $3.2 billion in operating cash flow before working capital. This allowed the company to continue its aggressive deleveraging plan, repaying $1.3 billion of debt in that single quarter. The ability to generate this level of cash flow while simultaneously advancing the low-carbon portfolio is a direct function of the quality of the underlying physical assets.

To summarize the resource base in plain terms, you are looking at:

• The physical land base: Approximately 2.8 million net acres in the Permian Basin.
• The inventory: 4.6 billion BOE in proved reserves as of year-end 2024.
• The future-facing tech: Proprietary DAC technology with the STRATOS facility permitted for 500,000 tonnes of annual capture.
• The immediate financial engine: Generating $3.2 billion in operating cash flow before working capital in Q3 2025.

Finance: review the 2026 capital framework budget against the Q3 2025 free cash flow generation by next Tuesday.

Occidental Petroleum Corporation (OXY) - Canvas Business Model: Value Propositions

High-margin, short-cycle hydrocarbon production from the Permian Basin.

Occidental Petroleum Corporation prioritizes its U.S. onshore portfolio, specifically the Permian Basin, allocating capital for high-return, short-cycle development.

The focus on efficiency in the Permian Basin has driven cost improvements, such as a 17% improvement in drilling duration per well in Q1 2025 compared to 2024, leading to an 18% reduction in drilling costs.

Low-carbon intensity oil and gas barrels via Enhanced Oil Recovery (EOR) with captured $\text{CO}_2$.

The company aims to produce a net-zero barrel of oil by pairing $\text{CO}_2$ Enhanced Oil Recovery (EOR) with captured $\text{CO}_2$ from its Direct Air Capture (DAC) facilities.

• EOR allows for incremental recovery of about 20%, sometimes more than 60%, of total oil in place.
• EOR projects show internal rates of return of 25-35%.
• New production from EOR wells using captured $\text{CO}_2$ is projected to reach about 8,000 barrels a day by 2025.
• This production was expected to be double the initial 4,000 barrels a day from 60 wells planned for 2024.

Commercial-scale, high-integrity carbon removal services for corporate net-zero goals.

Occidental Petroleum Corporation is commercializing carbon removal through its STRATOS facility, the world's largest operating DAC plant.

The STRATOS facility is on track for commissioning and start-up operations in 2025. The U.S. EPA approved the first Class VI injection well permits in Texas to sequester $\text{CO}_2$ from DAC in April 2025.

Reliable supply of crude oil, natural gas, and Natural Gas Liquids (NGLs) to global markets.

The company maintains a significant production base across its segments.

• Expected full-year 2025 average production: approximately 1.42 million BOE per day.
• Total Q3 2025 production: 1.465 million boed.
• U.S. oil production in Q3 2025: 634,000 b/d.
• Total proved reserves year-end 2024: 4.6 billion BOE.

Strategic focus on debt reduction and capital efficiency for superior shareholder returns.

Financial discipline is a core value proposition, demonstrated by aggressive deleveraging and portfolio optimization.

The company also announced four divestitures since April 2025, generating approximately $950 million for debt reduction. Capital freed from the OxyChem sale, estimated at $350-$400 million annually in sustaining capex, is expected to be redirected to Permian activity.

Occidental Petroleum Corporation (OXY) - Canvas Business Model: Customer Relationships

You're looking at how Occidental Petroleum Corporation (OXY) manages its diverse set of buyers, from massive industrial consumers to individual investors. The relationships are clearly segmented based on the product and the required level of engagement, moving from high-touch strategic partnerships in low-carbon ventures to purely transactional commodity sales.

Dedicated account management for long-term, high-volume B2B contracts

For Occidental Petroleum Corporation's low-carbon ventures, the relationship model is definitely high-touch, built on multi-year, high-volume offtake agreements. This is where dedicated account management is crucial, as these are strategic alliances, not simple commodity trades. The company is positioning its carbon removal as a service for major corporations needing to meet their own net-zero targets. For instance, the STRATOS Direct Air Capture (DAC) facility, which is on track to start capturing $\text{CO}_2$ in 2025 with a nameplate capacity of 500,000 tons per year, has the majority of its volumes through 2030 already contracted. This commitment shows a deep, long-term relationship with industrial buyers.

These agreements solidify a bankable demand for Occidental Petroleum Corporation's carbon removal credits. The company currently stores up to 20 million tons of $\text{CO}_2$ per year, primarily from natural sources, leveraging over 50 years of experience in $\text{CO}_2$ management and infrastructure.

Transactional sales for spot market crude oil and natural gas

For the core upstream business, relationships are largely transactional, driven by prevailing market prices for crude oil and natural gas. The pricing environment in mid-2025 dictated the terms of these sales. For the second quarter of 2025, the average worldwide realized crude oil price decreased by 10% from the prior quarter to $63.76 per barrel. Similarly, average domestic realized gas prices saw a significant drop, falling by 45% from the first quarter of 2025 to $1.33 per thousand cubic feet (Mcf) in Q2 2025. To give you context on the prior quarter's transactional benchmarks, in Q1 2025, the average domestic realized gas price was $2.42 per Mcf.

Total average global production for Occidental Petroleum Corporation in Q2 2025 was 1,400 thousand barrels of oil equivalent per day (Mboed). These volumes are sold into the market based on daily or short-term pricing mechanisms.

Strategic alliances with industrial partners for customized carbon removal solutions

This area represents the most complex and relationship-intensive part of Occidental Petroleum Corporation's customer base, centered around its low-carbon ventures. These alliances cover offtake, infrastructure, and joint development. The relationships are customized to integrate carbon removal into the partners' operations or supply chains. The company is actively developing an ecosystem of partners to scale its DAC deployment.

Here are some of the key commercial agreements underpinning these relationships:

• Secured a multi-year deal to sell 500,000 metric tons of carbon removal credits to Microsoft.
• Signed an agreement with Amazon for carbon removal credits.
• Signed additional commercial agreements for $\text{CO}_2$ removal sales with JPMorgan and Palo Alto Networks since the first quarter of 2025.
• Partnered with Enterprise Products Partners to establish a plan for a $\text{CO}_2$ transportation network.
• Evaluating a potential joint venture with XRG (ADNOC's investment company) to develop a DAC facility in South Texas, with XRG considering an investment up to $500 million for a facility capturing 500,000 tonnes of $\text{CO}_2$ annually.

The expected operational start of the Stratos plant in mid-2025 is the ultimate validation point for these customer relationships, moving the product from a promise to a delivered commodity.

Investor relations focused on transparency regarding debt reduction and ESG performance

The relationship with the investment community is heavily managed around financial discipline and the company's transition strategy. Transparency on debt reduction is a primary focus, as the company aggressively worked to deleverage following major acquisitions. Occidental Petroleum Corporation repaid $7.5 billion of debt in just 13 months, which reduced annual interest expense by approximately $410 million. Year-to-date in 2025, the company repaid $3.0 billion in debt through asset sales and organic cash flow. At the end of the second quarter of 2025, the company maintained a strong unrestricted cash balance of $2.3 billion.

Regarding shareholder returns and valuation metrics as of August 2025, the quarterly dividend was maintained at $0.24 per share for the first three quarters of 2025, and the stock carried a forward Price-to-Earnings ratio of 12.5 with a dividend yield of 3.2%. The company's net debt to EBITDA ratio was reported low at 0.07x in one recent analysis, showing strong earnings relative to the debt load. The divestiture of the chemical business, OxyChem, for $9.7 billion in an expected Q4 2025 closing, is a major communication point to investors, signaling a sharpened focus on core upstream assets and debt reduction.

The ESG narrative is tied directly to the success of the low-carbon division. The company is advancing its plans to establish three carbon sequestration hubs scheduled to become operational by 2025, alongside the STRATOS facility launch.

Here's a quick look at the key financial metrics driving investor sentiment:

Occidental Petroleum Corporation (OXY) - Canvas Business Model: Channels

You're looking at how Occidental Petroleum Corporation (OXY) moves its product and services to the customer base as of late 2025. It's a mix of traditional energy logistics and new-era carbon management delivery.

Midstream & Marketing segment for transportation, processing, and storage

The Midstream & Marketing segment handles the logistics backbone. For the Trailing Twelve Months ending September 30, 2025, this segment recorded revenues of $1.08B. You saw strong performance in the first quarter of 2025, with Midstream & Marketing revenues hitting $203 million, a year-over-year improvement of 105.1%.

However, the pre-tax results for Q1 2025 reflected a loss of $77 million, though this still exceeded the mid-point guidance by $127 million when excluding derivative impacts.

Here's a snapshot of the segment's reported revenue figures from the first half of 2025:

Direct sales to major refineries and petrochemical manufacturers globally

The core of the sales channel involves moving crude oil and natural gas liquids to major buyers. Occidental Petroleum Corporation's total company production for the full year 2025 is guided to be 1,400-1,430 Mboe/d (thousand barrels of oil equivalent per day).

For the first quarter of 2025, total sales volume was 1,391 Mboe/d, marking an 18.4% increase from the prior year period.

The distribution of production volumes gives you a sense of where the product is moving:

• Permian, Rockies & Other Domestic: 754 Mboed (Q1 2025 average production)
• Gulf of America: 121 Mboed (Q1 2025 average production)
• International: 224 Mboe/d (Q1 2025 average production)

International petroleum markets via long-term contracts and spot sales

International markets are a key destination for a portion of Occidental Petroleum Corporation's output. The company's guidance for international production volumes for the third quarter of 2025 ranged from a low of 233 Mboe/d to a high of 245 Mboe/d.

For Q1 2025, the realized price for crude oil globally was $71.07 per barrel, a 2% increase from the previous quarter.

1PointFive subsidiary for selling carbon removal credits and sequestration services

The 1PointFive subsidiary uses Direct Air Capture (DAC) technology to deliver carbon removal credits, a distinct channel for a low-carbon offering. The STRATOS facility in Texas is expected to have a capacity to capture up to 500,000 metric tons a year of CO2.

You can see the scale of the off-take agreements already secured:

Additionally, XRG is considering an investment of up to $500 million to support a proposed DAC facility in South Texas, which would pull 500,000 tonnes of CO2 from the air every year.

Also, 1PointFive formed a 50-50 venture with Enbridge Inc to develop the Pelican Sequestration Hub in Louisiana.

Occidental Petroleum Corporation (OXY) - Canvas Business Model: Customer Segments

You're looking at the core buyers for Occidental Petroleum Corporation (OXY) as of late 2025, which is a mix of traditional energy purchasers and new-age industrial decarbonization partners. Honestly, the customer base is split between high-volume commodity sales and high-value, long-term carbon removal contracts.

The primary traditional buyers are other businesses in the energy and chemical value chains. The oil and gas segment, which covers crude oil, NGL, and natural gas sales, reported net sales of $5.4 billion for the three months ended September 30, 2025. Occidental Petroleum's business structure is heavily anchored in U.S. operations, where 84.5% of net sales are generated.

For context on the physical product volumes moving to these customers, here are the production breakdowns from the first half of 2025:

The realized prices Occidental Petroleum receives from these commodity customers show the value captured:

• Average domestic realized natural gas price for Q1 2025 was $2.42 per thousand cubic feet (Mcf).
• Average worldwide realized crude oil price for Q2 2025 was $63.76 per barrel.
• Average realized NGL price for Q1 2025 was $25.94 per barrel.

The shift toward low-carbon solutions brings in a distinct customer segment: industrial companies with Net-Zero commitments. These clients purchase Carbon Dioxide Removal (CDR) credits, primarily from Occidental Petroleum's subsidiary 1PointFive. This business is scaling rapidly:

• Total CDR credit deliveries reached 590,000 tons by February 2025.
• A total of 13 million tons have already been sold for a cumulative value of $3.6 billion, averaging $276/tonne.
• Microsoft Corporation (MSFT) was a significant buyer, purchasing 3.3 million credits in 2025 alone.
• The STRATOS DAC facility, expected to begin commercial operations in 2025, has a capacity of up to 500,000 tonnes of CO2 per year.
• Occidental Petroleum is in late-stage negotiations to sell approximately 65% to 75% of the credits generated from STRATOS through 2030, which totals about 1.63 million to 1.98 million credits.

Utility Companies and Power Generators are key consumers of natural gas. The company's upstream segment supplies this energy. For instance, in Q1 2025, the oil and gas pre-tax income was $1.7 billion. The chemical segment, which uses natural gas and NGLs as feedstocks, achieved pre-tax adjusted income of $215 million in Q1 2025.

Finally, Occidental Petroleum deals with Governments and National Oil Companies in its international operating areas, which include the Middle East and North Africa. In Q1 2025, international operations contributed 224 Mboed to total production. A concrete example of a government-related customer engagement is the commitment Occidental Petroleum made to modernize Sonatrach's infrastructure in Algeria, pledging $3 billion.

Finance: review Q3 2025 realized prices for NGLs and gas against Q2 2025 figures by next Tuesday.

Occidental Petroleum Corporation (OXY) - Canvas Business Model: Cost Structure

You're looking at the major outlays that keep Occidental Petroleum Corporation (OXY) running, especially considering their dual focus on core oil and gas and the massive build-out of their low-carbon ventures. The cost structure is heavily weighted toward capital-intensive activities, both in the ground and in the air.

Capital Expenditure (Capex) is a primary driver. For the full fiscal year 2025, Occidental Petroleum set its capital plan in the range of $7.0 billion to $7.2 billion. This spending is strategically split, prioritizing short-cycle, high-return assets in the Permian Basin while simultaneously funding the Direct Air Capture (DAC) and Carbon Capture, Utilization, and Storage (CCUS) build-out through its Low Carbon Ventures (LCV) division. The front-loading of this capital in early 2025, to complete the CrownRock integration and advance DAC projects, temporarily compressed free cash flow, though efficiency gains were intended to offset some of this burn.

The investment in the low-carbon segment is substantial and represents a significant fixed cost component once assets like the STRATOS facility come online. Here's a look at the key capital outlays related to this transformation:

The core business still carries the high fixed costs associated with Permian Basin drilling and production infrastructure. While the company targets efficiency to manage these, the sheer scale of the assets means fixed costs remain a large part of the overall expense base. For instance, the company reported a 17% improvement in drilling duration per well in the Permian compared to 2024, leading to an 18% reduction in drilling costs, which helps manage the variable component of these fixed infrastructure costs.

Operating Expenses (OpEx) are under active management for cost reduction. Total Trailing Twelve Months (TTM) Operating Expenses as of September 30, 2025, were reported at $23.534 billion. Lease Operating Expenses (LOE) are a key metric here. Domestic LOE for the third quarter of 2025 specifically came in at $8.11 per BOE (Barrel of Oil Equivalent). Furthermore, the annual domestic operating cost guidance for 2025 was reduced to $8.65/BOE, down from a previous expectation of $9.00/BOE, reflecting these efficiency wins.

Costs related to CO2 management are embedded within both Capex and OpEx, though specific, fully-loaded OpEx figures for CCUS management are often bundled. The focus on debt reduction directly impacts the financial cost structure through lower interest payments.

The aggressive reduction of long-term debt is a major focus, which directly lowers the ongoing interest expense. Over the 13 months leading up to August 2025, Occidental managed to reduce debt by $7.5 billion, which cut annual interest expenses by $410 million. By the end of the third quarter of 2025, principal debt stood at $20.8 billion after a quarterly repayment of $1.3 billion. The planned OxyChem transaction is expected to further reduce annual interest expense by more than $350 million. For the third quarter of 2025 alone, the reported Interest Expense on Debt was $-270 Million.

Here are the key financial impacts of the deleveraging strategy:

• Debt repaid over 13 months (ending Aug 2025): $7.5 billion.
• Annual interest expense reduction from that 13-month paydown: $410 million.
• Principal debt level as of end of Q3 2025: $20.8 billion.
• Projected annual interest expense reduction from OxyChem sale proceeds: more than $350 million.
• Interest Expense for Q3 2025: $-270 Million.

Finance: draft 13-week cash view by Friday.

Occidental Petroleum Corporation (OXY) - Canvas Business Model: Revenue Streams

You're looking at the core ways Occidental Petroleum Corporation (OXY) brings in cash as of late 2025. It's still heavily weighted toward traditional energy, but the low-carbon ventures are starting to show up in the numbers, which is a key strategic shift.

Crude Oil and Condensate sales remain the bedrock of the revenue structure. For the third quarter of 2025, the Oil and Gas segment reported revenue of $\text{\$5.4 billion}$, according to the internal segment reporting structure you provided. This segment's performance is highly sensitive to commodity prices; for instance, average worldwide realized crude oil prices increased by $\text{2%}$ from the prior quarter to $\text{\$64.78 per barrel}$ in Q3 2025. The company's total production for Q3 2025 was strong, exceeding guidance at $\text{1,465 Mboed}$ (thousand barrels of oil equivalent per day). This operational strength helps drive the top line, even when prices are choppy.

The other commodity streams are also important contributors. You see revenue generated from Natural Gas and Natural Gas Liquids (NGLs) sales. While NGL prices saw a slight dip, with average worldwide realized NGL prices decreasing by $\text{5%}$ from the prior quarter, domestic natural gas prices were up, increasing by $\text{11%}$ from the prior quarter to $\text{\$1.48 per thousand cubic feet (Mcf)}$ in Q3 2025. These figures directly translate into the revenue mix.

Next up are the Midstream services fees. This revenue stream comes from providing flow assurance and maximizing value through transportation and processing, including the low-carbon ventures. For Q3 2025, the Midstream and Marketing segment posted pre-tax income of $\text{\$93 million}$. This segment is critical for ensuring the oil and gas assets can actually get product to market efficiently, so those fees are a steady, if smaller, component of the overall take.

The most forward-looking revenue component is Emerging revenue from Carbon Capture and Sequestration (CCS) services and carbon credit sales, primarily channeled through the 1PointFive subsidiary. This is where the future growth story is being written. We're seeing concrete, contracted revenue potential here. For example, Occidental Petroleum secured a 25-year offtake agreement with CF Industries for the sequestration of approximately $\text{2.3 million metric tons of carbon dioxide per year}$. Furthermore, the company is attracting significant capital for its Direct Air Capture (DAC) facilities, such as the potential joint venture with ADNOC's XRG, which is considering investing up to $\text{\$500 million}$ in a DAC facility designed to capture $\text{500,000 tonnes of carbon dioxide annually}$.

To give you the full picture of the scale, here's how the total revenue stacks up:

Honestly, you need to watch the commodity prices, but the CCS contracts offer a different kind of stability. Here's a quick look at the key drivers impacting the commodity-linked revenue:

• Average realized crude oil price (Q3 2025): $\text{\$64.78 per barrel}$
• Average domestic realized gas price (Q3 2025): $\text{\$1.48 per Mcf}$
• Average realized NGL price (Q3 2025): $\text{\$19.60 per barrel}$
• Total Company Average Production (Q3 2025): $\text{1,465 Mboed}$

The company is clearly using the strength of its core business to fund the build-out of the CCS revenue stream. Finance: draft 13-week cash view by Friday.