Occidental Hits Record Highs in Q4 Performance
OCCIDENTAL (OXY), one of the world's largest oil and gas companies, has wrapped up its strongest year yet, according to data from the company's Fourth Quarter 2024 Earnings Conference Call. The results are nothing short of stellar, with significant strides made in multiple key areas.
In a call that underscored the company's strategic prowess, CEO Vicki Hollub praised the team for an outstanding performance across all three segments, including oil production, midstream operations, and carbon management. "2024 was a year of strategic execution for Oxy," she stated. The company successfully increased its exposure in short-cycle, high-return assets while advancing major projects set to deliver sustainable returns through the cycle.
Key highlights from the quarter include generating $4.9 billion of free cash flow – enabling a substantial dividend payout of approximately $800 million and an increase of more than 22% in the quarterly dividend. Notably, Occidental achieved its near-term debt repayment target of $4.5 billion seven months ahead of schedule.
The company also reported record oil production in the U.S., with the highest annual U.S. oil production ever recorded at 1.33 million BOE per day. This was driven by exceptional well performance leadership across operated U.S. onshore positions, including key basins like Delaware, DJ, Midland, and Powder River.
In addition to solid operational results, Occidental made significant strides in reducing costs – achieving a 9% drop in domestic lease operating expenses per barrel and an approximate 12% reduction in well costs across all unconventional basins. Furthermore, the company demonstrated its commitment to reserve replacement, boosting year-end proved reserves to 4.6 billion BOE, representing the highest level in OXY's history.
The company attributes this success to its relentless focus on performance and safe operations – coupled with a strategic approach that maximizes value through asset optimization, innovation, and prudent capital allocation.
President Vicki Hollub summarized the vision: "Our team has made remarkable progress toward our priorities of cash flow growth, shareholder returns, and balance sheet strength. We've also advanced major projects aimed at delivering sustainable returns through the cycle."
