Occidental Petroleum Corp. (NYSE:OXY)

The analysis of the annual data reveals several notable trends in the components of property, plant, and equipment (PP&E) over the five-year period ending December 31, 2024.

Oil and Gas Segment

The value of assets in the oil and gas segment remained relatively stable from 2020 to 2021, with a slight decrease from approximately 102.5 billion USD to 101.3 billion USD. Subsequently, there is a consistent upward trend through 2022 to 2024, culminating in a notable increase to roughly 121.9 billion USD. This reflects ongoing investment or asset appreciation in this core segment.

Chemical Segment

The chemical assets exhibit a steady increase year-over-year, rising from 7.4 billion USD in 2020 to 8.7 billion USD by 2024. The growth rate is modest but consistent, indicating stable expansion or reinvestment in the chemical business.

Midstream and Marketing Segment

Values in the midstream and marketing category show slight fluctuations. After an initial rise from 8.2 billion USD in 2020 to 8.4 billion USD in 2021, there is a noticeable dip in 2022 to 7.6 billion USD. The segment recovers in 2023 and 2024 with further growth, reaching 9.3 billion USD, suggesting either asset turnover or market adjustments followed by renewed investment.

Corporate Segment

The corporate assets are comparatively small and fluctuate within a narrow range, increasing slightly from 0.9 billion USD in 2020 to just over 1 billion USD by 2023 and maintaining that level in 2024. This suggests limited changes or new asset acquisitions in the corporate category.

Property, Plant, and Equipment, Gross

The gross PP&E overall trend shows a gradual growth, increasing from approximately 119.0 billion USD in 2020 to nearly 141.0 billion USD in 2024. This demonstrates ongoing capital expenditures or asset additions over the period.

Accumulated Depreciation, Depletion, and Amortization

This accumulated figure grows steadily in magnitude (as a negative value), moving from -53.1 billion USD in 2020 to -71.6 billion USD in 2024. The increasing accumulated depreciation reflects ongoing usage and aging of the assets, consistent with typical asset lifecycle patterns.

Property, Plant, and Equipment, Net

Contrary to the gross values, net PP&E shows a decline from about 65.9 billion USD in 2020 to a low of 58.4 billion USD in 2022, followed by stabilization around 58.5 billion USD in 2023. A significant recovery is observed in 2024, with net PP&E rising sharply to approximately 69.4 billion USD. This recovery may be due to asset additions outpacing depreciation or possible asset revaluations.

In summary, the company’s total investment in property, plant, and equipment is increasing on a gross basis, while accumulated depreciation reflects continuous asset amortization. The net asset position experienced some contraction in the early years but has notably improved in the most recent year, driven primarily by growth in the oil and gas segment along with recovery in midstream and marketing assets. The chemical and corporate segments show steady, moderate increases, indicating balanced asset management across these areas.

Average Age Ratio

The average age ratio exhibited an overall increasing trend from 44.61% at the end of 2020 to a peak of 53.85% at the end of 2023, followed by a decline to 50.78% in 2024. This pattern suggests a progressive aging of the property, plant, and equipment (PPE) assets over the initial four-year period, indicating that the assets were becoming older on average, which could imply lower recent capital investments or slower asset turnover during that time.

The subsequent reduction in the average age ratio in 2024 may indicate renewed investment in newer assets, the retirement of older equipment, or a combination of both. This decrease can be seen as a potential effort to modernize the asset base or improve operational efficiency.

Overall, the data reflects a phase of asset aging followed by a modest rejuvenation within the five-year period analyzed.

Accumulated depreciation, depletion and amortization

There is a consistent upward trend in accumulated depreciation, depletion, and amortization over the five-year period. The value increased from 53,075 million US dollars in 2020 to 71,576 million US dollars in 2024. This indicates ongoing usage and aging of property, plant, and equipment assets, as well as continual expense recognition related to asset consumption.

Property, plant and equipment, gross

The gross property, plant, and equipment balance exhibited moderate fluctuations initially, with a slight decline from 118,964 million US dollars in 2020 to 118,157 million in 2021. From 2021 onward, the value increased steadily, reaching 140,954 million US dollars by the end of 2024. This suggests that the company has been investing in additional assets or capital expenditures after 2021, expanding its asset base.

Average age ratio

The average age ratio, expressed as a percentage, rose sharply from 44.61% in 2020 to a peak of 53.85% in 2023, indicating that the asset base was aging over this period. However, in 2024, the ratio decreased to 50.78%, potentially signaling the acquisition of newer assets or disposal of older ones, thereby slightly reducing the average age of the asset portfolio.

Overall Insights

The data reflects a property, plant, and equipment portfolio experiencing steady aging with increasing accumulated depreciation, consistent with asset usage and time. Gross asset values have increased particularly in the latter years, suggesting active investment in asset expansion. The decline in average age ratio in 2024 implies recent capital expenditures have introduced newer assets, which may enhance operational efficiency and future depreciation patterns.