Occidental Petroleum Corp. (NYSE:OXY)

The financial data reveals several notable trends from 2020 through 2024 in key operational and profitability measures.

Revenue and Income Trends

Revenues and other income as a percentage of net sales remained relatively stable, fluctuating slightly above 100%, indicating overall consistency in revenue generation relative to net sales. Operating income showed a significant improvement from a substantial loss in 2020 (-79.89%) to positive returns in subsequent years, peaking at 38.32% in 2022 before tapering to 16.4% by 2024. Similarly, net income attributable to the company moved from a severe loss of -83.28% in 2020 to positive figures, reaching 36.32% in 2022 and declining thereafter. This suggests a recovery phase with peak operational profitability around 2022, followed by some deceleration in later years.

Cost Structure Dynamics

Key cost components such as oil and gas lease operating expenses, transportation and gathering expenses, and chemical and midstream cost of sales all exhibited variability. The oil and gas lease operating expense improved notably from -17.21% in 2020 to a low of -11% in 2022 but then worsened again to -17.73% in 2024. Transportation and gathering costs decreased from -8.98% to -4.03% by 2022, increasing again thereafter. Chemical and midstream costs followed a similar pattern of improvement until 2022, then increased. Purchased commodities costs showed a sharp decline by 2024, dropping significantly to -1.26% after hovering near -8% in earlier years. Selling, general and administrative expenses steadily decreased from -4.85% to about -3.97%, suggesting improved administrative efficiency.

Depreciation, Impairments, and Charges

Depreciation, depletion, and amortization experienced a substantial decrease from -45.47% in 2020 to -18.91% in 2022, but then rose again to -27.58% by 2024. Asset impairments and other charges were extremely high in 2020 (-62.23%) but dropped drastically after that, with minimal or no charges in some years, except a modest increase to -4.79% in 2024. This shift points to a large one-time impairment impact in 2020 with subsequent management of asset write-downs more effectively controlled.

Interest and Taxation

Interest and debt expenses showed a declining trend through the period, improving from -8% in 2020 to -2.81% in 2022 but edged back upward by 2024 to -4.4%. Income tax expenses varied, with a tax benefit recorded in 2020 (12.2%) but then turning into tax expenses in subsequent years, peaking at -6.13% in 2023 before a slight reduction in 2024. This indicates changing tax positions likely linked to shifts in profitability.

Other Income and Expenses

Gains and losses on sales of assets turned positive after 2020, peaking at 1.85% in 2023 before declining near zero in 2024, reflecting asset divestitures contributing positively until recent years. Interest rate swap gains appeared sporadically with positive contributions in 2021 and 2022 but no data in later years. Income from equity investments and other income remained relatively stable between 1.89% and 3.23%, providing a consistent supplemental income source.

Profitability to Common Stockholders

Net income attributable to common stockholders improved markedly from a large loss of -88.02% in 2020 to positive returns, reaching a peak of 34.13% in 2022 before declining to 8.89% in 2024. This demonstrates significant recovery and profitability growth over the period, although with some retreat from peak performance.

Overall, the data suggest a company that experienced a severe downturn in 2020, followed by a substantial recovery and peak profitability around 2022. Costs and impairments were significantly reduced post-2020, contributing to improved earnings. However, the trends in 2023 and 2024 indicate some slowing in profitability gains, with increasing operating costs and taxes partly offsetting revenue stability. Continued focus on cost management and asset efficiency will likely be important to sustain profitability going forward.