Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Occidental Petroleum Corp., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income (loss)	3,078)	4,696)	13,304)	2,322)	(14,831)
Discontinued operations, net	(182)	—)	—)	468)	1,298)
Depreciation, depletion and amortization of assets	7,371)	6,865)	6,926)	8,447)	8,097)
Deferred income tax provision (benefit)	(461)	57)	(1,644)	46)	(2,517)
Other noncash (benefit) charges to income	543)	(100)	(8)	229)	419)
Asset impairments and related items	1,281)	209)	—)	304)	11,002)
(Gains) losses on sales of assets and other, net	60)	(522)	(308)	(192)	1,666)
Undistributed (earnings) losses from equity investments	(79)	144)	(219)	(70)	(61)
Dry hole expense	106)	299)	84)	125)	47)
(Increase) decrease in receivables	(133)	1,088)	(97)	(2,086)	2,062)
(Increase) decrease in inventories	(46)	(91)	(230)	(86)	(484)
(Increase) decrease in joint interest receivables and other current assets	303)	(13)	(335)	(119)	350)
Increase (decrease) in accounts payable and accrued liabilities	(661)	(549)	(478)	865)	(3,228)
Increase (decrease) in current domestic and foreign income taxes	559)	225)	(185)	—)	22)
Changes in operating assets and liabilities	22)	660)	(1,325)	(1,426)	(1,278)
Adjustments to reconcile net income (loss) to net cash from operating activities	8,661)	7,612)	3,506)	7,931)	18,673)
Net cash provided by operating activities	11,739)	12,308)	16,810)	10,253)	3,842)
Capital expenditures	(7,018)	(6,270)	(4,497)	(2,870)	(2,535)
Change in capital accrual	96)	25)	147)	97)	(519)
Purchases of assets, businesses and equity investments, net	(9,129)	(713)	(990)	(431)	(114)
Proceeds from sale of assets and equity investments, net	1,673)	448)	584)	1,624)	2,281)
Equity investments and other, net	(212)	(470)	(116)	406)	109)
Net cash used by investing activities	(14,590)	(6,980)	(4,872)	(1,174)	(778)
Draws on receivables securitization facility	—)	900)	400)	—)	—)
Payment of receivables securitization facility	—)	(900)	(400)	—)	—)
Proceeds from long-term debt, net	9,612)	(46)	—)	—)	6,936)
Payments of long-term debt, net	(4,514)	(22)	(9,484)	(6,834)	(8,916)
Redemption of preferred stock	—)	(1,661)	—)	—)	—)
Purchases of treasury stock	(27)	(1,798)	(3,099)	(8)	(12)
Cash dividends paid on common and preferred stock	(1,446)	(1,365)	(1,184)	(839)	(1,845)
Proceeds from issuance of common stock	584)	135)	293)	31)	134)
Contribution from noncontrolling interest	200)	100)	—)	—)	—)
Payment of liabilities associated with the sale of future royalties	—)	—)	—)	—)	(386)
Financing portion of net cash paid for derivative instruments	—)	—)	(111)	(834)	(362)
Deferred payments for purchases of assets and businesses	(318)	—)	—)	—)	—)
Other financing, net	(247)	(233)	(130)	(80)	(57)
Net cash provided (used) by financing activities	3,844)	(4,890)	(13,715)	(8,564)	(4,508)
Operating cash flow from discontinued operations	(300)	—)	—)	181)	113)
Investing cash flow from discontinued operations	—)	—)	—)	(79)	(41)
Financing cash flow from discontinued operations	—)	—)	—)	(8)	(8)
Cash flow from discontinued operations	(300)	—)	—)	94)	64)
Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents	693)	438)	(1,777)	609)	(1,380)
Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of year	1,464)	1,026)	2,803)	2,194)	3,574)
Cash, cash equivalents, restricted cash and restricted cash equivalents, end of year	2,157)	1,464)	1,026)	2,803)	2,194)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Net Income (Loss): The company experienced a significant turnaround in net income over the periods analyzed. In 2020, it reported a substantial net loss of $14,831 million, followed by positive net income in subsequent years, peaking at $13,304 million in 2022, before declining to $3,078 million in 2024.
Depreciation, Depletion and Amortization: These noncash expenses remained relatively stable with values fluctuating modestly around $7,000 to $8,500 million, indicating steady asset utilization and capital investment amortization over the years.
Deferred Income Tax Provision (Benefit): This item displays considerable variability, with notable benefits in 2020 and 2022 (-$2,517 million and -$1,644 million respectively), and smaller amounts in other years, reflecting fluctuating tax-related adjustments impacting earnings.
Asset Impairments and Related Items: There was a pronounced impairment expense of $11,002 million in 2020, which sharply decreased to negligible or moderate levels thereafter, except for a rebound to $1,281 million in 2024, suggesting periodic reassessments of asset values.
Gains (Losses) on Sales of Assets and Other, Net: Net gains recorded in 2020 ($1,666 million) turned into net losses in subsequent years, with fluctuations reflecting irregular asset disposition activities throughout the periods.
Operating Cash Flow: Net cash provided by operating activities displayed a strong upward trend from 2020 ($3,842 million) to 2022 ($16,810 million), followed by moderate declines in 2023 ($12,308 million) and 2024 ($11,739 million), indicating robust cash generation capacity with some recent softening.
Capital Expenditures: Capital expenditures steadily increased each year from $2,535 million in 2020 to $7,018 million in 2024, reflecting ongoing and growing investments in property, plant, and equipment or exploration activities.
Investing Activities: Net cash used by investing activities deepened over the periods, growing from -$778 million in 2020 to -$14,590 million in 2024, largely driven by increased capital expenditures and greater purchases of assets and equity investments in the latest year.
Financing Activities: Net cash used by financing activities was notably negative in the earlier years, peaking at -$13,715 million in 2022, but turned positive in 2024 with $3,844 million. This shift was influenced by a combination of long-term debt activities, stock issuance, dividends, and treasury stock purchases.
Debt and Equity Transactions: The company exhibited mixed behavior with debt issuance dropping to nearly zero during 2021 and 2022, followed by a substantial inflow of $9,612 million in 2024. Long-term debt repayments were large but decreased over time. Treasury stock purchases peaked sharply in 2022 and 2023 but reduced drastically in 2024. Stock issuances gradually increased, contributing positively to financing cash flow.
Cash Position: Cash and equivalents declined significantly from 2020 to 2022, falling from $2,194 million to $1,026 million, but improved thereafter, reaching $2,157 million by the end of 2024. The increase in cash in the last two years aligns with net positive financing cash flow and sustained operating cash flows.
Working Capital and Operating Assets: Changes in operating assets and liabilities were mostly negative or minimal, except in 2023 when there was a positive change of $660 million, indicating occasional improvements in working capital management. Inventory, receivables, payables, and tax-related changes fluctuated, contributing to operating cash flow variability.
Discontinued Operations: Discontinued operations contributed positively in 2020 and 2021 but became negative in 2024, indicating possible divestitures or impairments impacting cash flows in that final period.
Summary of Trends: The financial data reveals a recovery from a severe loss in 2020 to profitability and strong cash flow generation in subsequent years, alongside increased capital spending and fluctuating investment activity. Financing patterns show initial deleveraging followed by renewed debt issuance and equity financing. Cash reserves declined before rebounding, reflecting improved liquidity. Asset impairments and sales gains/losses indicate active asset portfolio management over the years. Overall, the company demonstrates dynamic financial management with periods of both investment expansion and financing adjustments aligning with operational performance.

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Occidental Petroleum Corp. (NYSE:OXY)

Cash Flow Statement