Cash generation efficiency has deteriorated, evidenced by a negative FCF margin of -5.7% and an OCF/NI ratio of 0.38 in 2026Q1, highlighting a disconnect between accounting profits and operational cash flow.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 9.66B | 10.53B | 11.44B | 12.31B | 16.81B | 10.43B | 3.96B | 7.38B | 7.67B | 4.86B | 3.38B | 3.35B | 11.07B | 12.93B | 11.3B | 12.28B | 9.35B | 5.81B | 10.65B | 6.8B | 6.35B | 5.34B | 3.88B | 3.07B | 2.1B | 2.57B | 2.4B | 1.04B | 80M | 1.37B | 1.99B |
| Operating CF Margin % | - | 48.78% | 42.21% | 43.44% | 46.37% | 40.19% | 23.08% | 38.38% | 49.25% | 39.01% | 33.52% | 26.86% | 57.08% | 52.89% | 46.89% | 51.72% | 49.54% | 37.85% | 43.83% | 36.07% | 36.99% | 36.56% | 34.11% | 32.96% | 28.62% | 18.35% | 17.69% | 13.35% | 1.18% | 17.1% | 18.82% |
| Operating CF Growth % | -62.46% | -7.93% | -7.06% | -26.78% | 61.11% | 163.82% | -46.37% | -3.83% | 57.77% | 43.65% | 0.98% | -69.72% | -14.38% | 14.41% | -8% | 31.36% | 60.83% | -45.43% | 56.69% | 7% | 19.04% | 37.62% | 26.15% | 46.38% | -18.16% | 6.87% | 129.98% | 1205% | -94.16% | -31% | 32.38% |
| Net Income | 4.71B | 2.37B | 3.1B | 4.7B | 13.3B | 2.32B | -14.83B | -522M | 4.13B | 1.31B | -574M | -7.83B | -144M | 5.9B | 4.6B | 6.77B | 4.6B | 2.98B | 6.84B | 5.08B | 4.18B | 5.27B | 2.57B | 1.59B | 1.16B | 1.19B | 1.57B | 568M | 363M | -390M | 698M |
| Depreciation & Amortization | 9.68B | 7.53B | 7.71B | 0 | 6.93B | 0 | 0 | 0 | 0 | 4.05B | 4.3B | 0 | 0 | 5.49B | 4.79B | 3.59B | 3.18B | 3.12B | 2.71B | 2.38B | 2.01B | 1.37B | 1.3B | 1.18B | 1.02B | 976M | 908M | 817M | 857M | 833M | 768M |
| Stock-Based Compensation | 0 | 0 | 228M | 0 | 0 | 287M | 0 | 0 | 0 | 0 | 0 | 0 | 64M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 306M | 127M | -461M | 57M | -1.64B | 46M | -2.52B | -1.03B | 371M | -719M | -517M | -1.37B | -1.18B | 1.19B | 580M | 1.44B | 406M | 507M | 268M | 35M | 0 | -54M | 173M | 65M | -141M | -181M | 413M | 183M | 275M | -9M | 3M |
| Other Non-Cash Items | -3.2B | 1.57B | 845M | 6.89B | -451M | 9.21B | 22.58B | 7.9B | 3.69B | 709M | 557M | 13.43B | 11.52B | 324M | 1.12B | 161M | 658M | 570M | 939M | 316M | 708M | -1.11B | 258M | 189M | 400M | 537M | -597M | -648M | -943M | 1.4B | 381M |
| Working Capital Changes | -1.83B | -1.07B | 22M | 660M | -1.32B | -1.43B | -1.28B | 1.03B | -521M | -493M | -383M | -880M | 806M | 24M | 210M | 322M | 505M | -1.36B | -104M | -1.01B | -545M | -144M | -424M | 42M | -341M | 48M | 108M | 124M | -472M | -458M | 137M |
| Change in Receivables | -764M | 252M | -133M | 1.07B | -97M | -865M | 2.41B | 401M | 955M | -158M | -1.09B | 1.43B | 1.41B | -755M | 472M | 0 | 0 | -679M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 35M | 12M | -46M | -91M | -230M | -86M | -484M | 78M | 0 | -349M | 17M | -24M | -112M | 87M | -265M | -50M | -42M | -107M | -64M | -71M | 0 | -127M | -94M | -3M | -73M | 37M | -39M | 27M | -43M | -20M | 0 |
| Change in Payables | -1.45B | -964M | -661M | -549M | -478M | 865M | -3.23B | 358M | -1.5B | 43M | 603M | -1.99B | -544M | 500M | -1.09B | 0 | 0 | -403M | -1.34B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | 2.78B | -5.8B | -14.59B | -6.98B | -4.87B | -1.25B | -819M | -29.03B | -3.21B | -3.08B | -4.74B | -5.42B | -8.47B | -8.19B | -12.64B | -9.9B | -9.08B | -5.33B | -9.46B | -3.14B | -4.39B | -3.16B | -2.29B | -2.02B | -1.7B | -736M | -3.1B | 1.59B | -1.22B | -1.5B | -979M |
| Capital Expenditures | -6.1B | -6.43B | -7.02B | -6.27B | -4.5B | -2.87B | -2.54B | -6.64B | -4.97B | -3.6B | -2.72B | -6.2B | -8.39B | -9.04B | -10.23B | -7.52B | -3.94B | -5.36B | -9.37B | -4.88B | -3B | -2.42B | -1.84B | -1.6B | -1.24B | -1.4B | -952M | -745M | -4.6B | -1.57B | -1.2B |
| CapEx % of Revenue | 26.3% | 29.76% | 25.9% | 22.13% | 12.4% | 11.05% | 14.79% | 34.54% | 31.95% | 28.88% | 26.92% | 49.72% | 43.26% | 36.98% | 42.43% | 31.66% | 20.88% | 34.92% | 38.54% | 25.88% | 17.5% | 16.6% | 16.21% | 17.17% | 16.84% | 10.02% | 7.01% | 9.53% | 67.63% | 19.6% | 11.4% |
| Acquisitions | -26M | 0 | -7.46B | -265M | -406M | -25M | -114M | -28.09B | -928M | 1.4B | 302M | 819M | 4.18B | 1.62B | 0 | 50M | -4.9B | 0 | -4.66B | 0 | -1.56B | -1.94B | -199M | -351M | -492M | -46M | -3.71B | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 9.05B | -1.37B | 96M | 25M | 1.02B | 1.64B | 1.83B | 5.7B | 2.7B | -883M | -2.33B | -38M | -4.26B | -775M | -2.42B | -2.44B | -415M | 51M | 4.69B | 483M | -10M | 0 | -2M | 193M | 28M | 711M | 1.57B | 2.34B | 3.33B | 20M | 184M |
| Cash from Financing | -11.24B | -4.84B | 3.84B | -4.89B | -13.71B | -8.57B | -4.52B | 22.19B | -3.1B | -2.34B | -802M | 1.48B | -2.2B | -2.93B | -846M | -1.18B | 1.08B | -1.03B | -1.38B | -3.04B | -2.82B | -1.19B | -818M | -516M | -456M | -1.81B | 579M | -2.52B | 1.12B | -90M | -1.33B |
| Debt Issued (Net) | -10.14B | -3.75B | 5.1B | -22M | -9.48B | -6.83B | -1.98B | 15.06B | 478M | 0 | 1.49B | 1.48B | -107M | -690M | 1.74B | 588M | 2.27B | 48M | 947M | -1.16B | -893M | -898M | -179M | -334M | 49M | -1.4B | 1.03B | -2.66B | 1.9B | 415M | -861M |
| Equity Issued (Net) | 32M | 966M | 557M | -3.32B | -2.81B | 23M | 122M | 9.79B | -1.22B | 3M | 14M | -556M | -2.47B | -913M | -498M | -224M | -57M | -22M | -1.48B | -1.19B | -1.42B | 131M | 245M | 208M | 154M | 79M | 29M | 21M | -908M | -98M | 25M |
| Dividends Paid | -1.62B | -1.59B | -1.45B | -1.36B | -1.18B | -839M | -1.84B | -2.62B | -2.37B | -2.35B | -2.31B | -2.26B | -2.21B | -1.55B | -2.13B | -1.44B | -1.16B | -1.08B | -1.07B | -765M | -646M | -483M | -424M | -392M | -375M | -372M | -369M | -363M | -387M | -422M | -415M |
| Share Repurchases | -56M | 0 | -27M | -3.46B | -3.1B | -8M | -12M | -237M | -1.25B | -25M | -22M | -593M | -2.5B | -943M | -583M | -274M | -67M | -40M | -1.51B | -1.2B | -1.47B | -8M | -466M | -2M | 0 | -11M | -12M | 0 | -937M | -119M | 0 |
| Other Financing | 490M | -462M | -365M | -179M | -241M | -922M | -813M | -31M | 9M | 0 | 0 | 2.83B | 2.58B | 223M | 44M | -103M | 26M | 20M | 218M | 71M | 140M | 62M | -460M | 2M | -284M | -122M | -114M | 487M | 511M | 15M | -79M |
| Net Change in Cash | 1.15B | -111M | 693M | 438M | -1.78B | 609M | -1.38B | 541M | 1.36B | -561M | -2.16B | -588M | 396M | 1.8B | -2.19B | 1.2B | 1.35B | -547M | -187M | 625M | -849M | 989M | 766M | 537M | -52M | 102M | -117M | 118M | -17M | -145M | -241M |
| Free Cash Flow | 3.57B | 4.11B | 4.42B | 6.06B | 12.46B | 7.56B | 1.42B | 1.01B | 2.69B | 1.26B | 553M | -1.92B | 2.68B | 4.82B | 1.09B | 4.76B | 5.41B | 2.23B | 1.29B | 1.92B | 3.35B | 3.01B | 2.04B | 1.47B | 864M | 1.25B | 1.45B | 299M | -994M | -174M | 784M |
| FCF Margin % | 15.39% | 19.01% | 16.31% | 21.4% | 34.37% | 29.13% | 8.29% | 5.25% | 17.3% | 10.13% | 5.48% | -15.4% | 13.82% | 19.7% | 4.51% | 20.06% | 28.66% | 14.54% | 5.3% | 10.19% | 19.49% | 20.64% | 17.9% | 15.79% | 11.77% | 8.95% | 10.67% | 3.82% | -14.61% | -2.17% | 7.43% |
| FCF Growth % | -20.04% | -7.15% | -27.08% | -51.34% | 64.73% | 432.68% | 40.87% | -62.58% | 113.47% | 128.21% | 128.79% | -171.68% | -44.34% | 343.37% | -77.2% | -11.94% | 142.34% | 73.43% | -32.97% | -42.65% | 11.12% | 48.06% | 38.15% | 70.49% | -30.94% | -13.66% | 384.62% | 130.08% | -471.26% | -122.19% | 50.19% |
| FCF per Share | 3.57 | 4.10 | 4.57 | 6.31 | 12.44 | 7.89 | 1.55 | 1.25 | 3.53 | 1.65 | 0.72 | -2.51 | 3.43 | 5.98 | 1.34 | 5.86 | 6.65 | 2.74 | 1.57 | 2.29 | 3.89 | 3.68 | 2.54 | 1.91 | 1.14 | 1.67 | 1.97 | 0.42 | -1.42 | -0.26 | 1.18 |
| FCF Conversion (FCF/Net Income) | 0.76x | 4.45x | 3.76x | 2.63x | 1.27x | 4.51x | -0.27x | -11.06x | 1.86x | 3.72x | -5.90x | -0.43x | 17.97x | 2.19x | 2.46x | 1.82x | 2.07x | 2.00x | 1.55x | 1.26x | 1.52x | 1.01x | 1.51x | 2.01x | 2.12x | 2.22x | 1.53x | 2.33x | 0.22x | -3.52x | 2.97x |
| Interest Paid | 589M | 0 | 0 | 1.1B | 1.43B | 1.69B | 0 | 0 | 0 | 351M | 312M | 246M | 219M | 238M | 190M | 315M | 161M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 694M | 0 | 1.2B | 1.3B | 2.18B | 763M | 0 | 1.94B | 0 | 900M | 300M | 1B | 2.9B | 1.8B | 2.3B | 2.9B | 2.4B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Commodity Price Volatility Exposure
As reported in recent financial statements, OXY's OCF/NI ratio reached a volatile 0.38 in 2026Q1, illustrating a significant divergence between accounting profits and actual cash generation that suggests earnings quality is currently compromised by non-cash adjustments or timing differences in the company's complex operational model.
The wide variance between net income and operating cash flow indicates that reported earnings may not be a reliable proxy for the firm's ability to fund its capital-intensive operations. Investors should monitor whether this disconnect persists, as it may imply that the company is relying on accounting maneuvers rather than core operational efficiency to sustain its bottom line.
Based on the provided cash flow data, OXY's FCF margin turned negative at -5.7% in 2026Q1, marking a sharp reversal from the 37.5% margin observed in 2025Q4 and highlighting the company's vulnerability to sudden shifts in commodity pricing and capital expenditure requirements.
The rapid deterioration in free cash flow suggests that the company's current cost structure is struggling to remain self-funding during periods of revenue contraction. This trend warrants further investigation into whether the firm can maintain its dividend and debt-reduction commitments without resorting to external financing or further asset divestitures.
According to the latest quarterly filings, OXY's CapEx/Revenue ratio climbed to 30.2% in 2026Q1, reflecting a persistent capital intensity that appears to be outpacing the company's ability to generate sufficient top-line growth to offset the heavy investment required for its unconventional shale and carbon capture assets.
The high level of capital expenditure relative to revenue suggests that the company is locked into a cycle of heavy reinvestment just to maintain production levels. This capital intensity may limit the firm's flexibility to pivot during market downturns, as a significant portion of its cash flow is effectively pre-committed to sustaining its asset base.
As evidenced by the $1.9 billion outflow in working capital during 2026Q1, OXY's cash flow is frequently disrupted by significant swings in operational liquidity, which suggests that the company's management of receivables and payables is highly sensitive to the broader energy market's cyclical fluctuations.
The erratic nature of working capital changes indicates that the company's cash conversion cycle is not yet optimized, potentially exacerbating liquidity pressures during periods of low commodity prices. Analysts should scrutinize whether these outflows are temporary timing issues or indicative of structural inefficiencies in the company's supply chain and marketing segments.
Quick answers to the most common questions about buying OXY stock.
Occidental Petroleum Corporation (OXY) generated $10.53B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Occidental Petroleum Corporation (OXY) generated $4.11B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Occidental Petroleum Corporation (OXY) spent $6.43B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Occidental Petroleum Corporation (OXY) returned $1.59B to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.