Analysis of Geographic Areas
Occidental Petroleum Corp. operates in 2 regions: United States and International.
Area Asset Turnover
Occidental Petroleum Corp., asset turnover by geographic area
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| United States | 0.38 | 0.48 | 0.62 | 0.43 | 0.24 |
| International | 0.65 | 0.65 | 0.84 | 0.63 | 0.54 |
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).
The analysis of asset turnover across geographic areas reveals a period of synchronized growth peaking in 2022, followed by a general contraction or stabilization through 2024. Both the United States and International segments demonstrated a similar trajectory of increasing efficiency before experiencing a decline in the latter two years of the period.
- United States Area Asset Turnover
- The domestic segment exhibited significant volatility in asset efficiency. The turnover ratio increased sharply from 0.24 in 2020 to a peak of 0.62 in 2022. Following this peak, a downward trend emerged, with the ratio declining to 0.48 in 2023 and further decreasing to 0.38 by the end of 2024. Despite the recent decline, the 2024 ratio remains higher than the 2020 baseline.
- International Area Asset Turnover
- International operations consistently maintained higher efficiency levels than the domestic segment. The turnover ratio rose from 0.54 in 2020 to a peak of 0.84 in 2022. A correction occurred in 2023, where the ratio dropped to 0.65, and this level of efficiency remained stable through December 31, 2024.
- Comparative Geographic Performance
- International assets consistently outperformed United States assets in terms of revenue generation per unit of asset. While both regions peaked in 2022—suggesting common external economic drivers—the International segment demonstrated greater stability post-peak. The decline in the United States was more pronounced, whereas the International ratio plateaued, indicating a more resilient asset utilization rate in foreign markets.
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Area Asset Turnover: United States
Occidental Petroleum Corp.; United States; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenue from customers | 23,880) | 24,736) | 32,020) | 22,787) | 14,167) |
| Property, plant and equipment, net | 62,604) | 51,646) | 51,706) | 53,197) | 59,016) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 0.38 | 0.48 | 0.62 | 0.43 | 0.24 |
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).
1 2024 Calculation
Area asset turnover = Revenue from customers ÷ Property, plant and equipment, net
= 23,880 ÷ 62,604 = 0.38
The financial performance of the United States geographic area reflects a period of significant volatility in revenue and asset utilization between 2020 and 2024. A peak in operational efficiency was observed in 2022, followed by a contraction in the asset turnover ratio through 2024.
- Revenue Trends
- Revenue from customers experienced substantial growth in the early part of the period, rising from 14,167 million US$ in 2020 to a peak of 32,020 million US$ in 2022. This represents a more than twofold increase over two years. Subsequently, revenues entered a downward trajectory, declining to 24,736 million US$ in 2023 and further to 23,880 million US$ by the end of 2024.
- Net Property, Plant, and Equipment (PP&E) Dynamics
- The asset base showed a steady decline from 59,016 million US$ in 2020 to 51,646 million US$ in 2023. However, a significant reversal occurred in 2024, with net PP&E increasing sharply to 62,604 million US$, marking the highest asset level within the analyzed timeframe.
- Area Asset Turnover Analysis
- The area asset turnover ratio closely mirrored revenue trends, increasing from 0.24 in 2020 to a peak of 0.62 in 2022. This improvement was driven by the simultaneous increase in revenue and the reduction in the net PP&E base. From 2022 onward, the ratio declined to 0.48 in 2023 and further to 0.38 in 2024. The 2024 decline is particularly pronounced, resulting from the convergence of moderating revenues and a substantial expansion of the asset base.
The overall trend indicates that while the US operations achieved high asset productivity in 2022, the subsequent increase in capital investment in 2024, paired with lower revenue levels compared to the peak, has led to a reduction in the efficiency of asset utilization.
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Area Asset Turnover: International
Occidental Petroleum Corp.; International; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenue from customers | 4,398) | 4,488) | 5,638) | 4,266) | 3,721) |
| Property, plant and equipment, net | 6,774) | 6,883) | 6,678) | 6,733) | 6,873) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 0.65 | 0.65 | 0.84 | 0.63 | 0.54 |
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).
1 2024 Calculation
Area asset turnover = Revenue from customers ÷ Property, plant and equipment, net
= 4,398 ÷ 6,774 = 0.65
The international segment exhibited significant volatility in revenue generation between 2020 and 2024, while maintaining a relatively stable capital asset base. Performance peaked in 2022, followed by a period of correction and stabilization through 2024.
- Revenue Performance
- Revenue from customers showed a strong upward trajectory from 2020 to 2022, increasing from US$ 3,721 million to a peak of US$ 5,638 million. This growth was followed by a decline in 2023 and a further slight decrease to US$ 4,398 million in 2024, indicating a period of contraction after the 2022 peak.
- Fixed Asset Stability
- Property, plant, and equipment, net remained remarkably consistent over the five-year period. Values fluctuated within a narrow range, starting at US$ 6,873 million in 2020 and ending at US$ 6,774 million in 2024. The lack of significant variation in the asset base suggests that changes in productivity were driven by external market factors or operational efficiency rather than large-scale capital expenditures or divestments.
- Area Asset Turnover Dynamics
- The area asset turnover ratio closely tracked the revenue trend due to the stability of the denominator (fixed assets). The ratio improved from 0.54 in 2020 to a high of 0.84 in 2022, representing a significant increase in the efficiency of assets in generating revenue. However, this efficiency subsided in 2023 and remained stagnant at 0.65 through 2024, suggesting a normalization of revenue generation relative to the invested capital base.
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Revenue from customers
Occidental Petroleum Corp., revenue from customers by geographic area
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| United States | 23,880) | 24,736) | 32,020) | 22,787) | 14,167) |
| International | 4,398) | 4,488) | 5,638) | 4,266) | 3,721) |
| Eliminations | (865) | (899) | (1,424) | (1,094) | (758) |
| Total | 27,413) | 28,325) | 36,234) | 25,959) | 17,130) |
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).
Total revenue experienced a significant upward trajectory between 2020 and 2022, peaking at US$ 36,234 million before entering a period of moderate contraction through 2024. This overall trend was primarily driven by fluctuations in domestic performance, while international revenue maintained a more stable, albeit smaller, contribution to the total top line.
- United States Revenue Trends
- Revenue from the United States grew aggressively from US$ 14,167 million in 2020 to a peak of US$ 32,020 million in 2022. Following this peak, domestic revenue decreased to US$ 24,736 million in 2023 and further to US$ 23,880 million by December 31, 2024. The US market serves as the primary revenue driver throughout the analyzed period.
- International Revenue Trends
- International revenue followed a trajectory similar to that of the domestic market, increasing from US$ 3,721 million in 2020 to US$ 5,638 million in 2022. A subsequent decline occurred in 2023, with revenue stabilizing at US$ 4,398 million by the end of 2024. The international segment consistently contributed a significantly smaller portion of overall revenue compared to the US segment.
- Geographic Revenue Concentration
- A high level of geographic concentration is observed, with the United States consistently accounting for the vast majority of total revenue. The strong correlation between the growth and contraction phases of both domestic and international revenue suggests that both regions were influenced by the same external market forces and commodity pricing cycles.
- Eliminations Analysis
- Eliminations scaled proportionally with total revenue, reaching a maximum negative impact of US$ 1,424 million in 2022. This figure decreased to US$ 865 million by 2024, mirroring the general contraction in total revenue observed after the 2022 peak.
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Property, plant and equipment, net
Occidental Petroleum Corp., property, plant and equipment, net by geographic area
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| United States | 62,604) | 51,646) | 51,706) | 53,197) | 59,016) |
| International | 6,774) | 6,883) | 6,678) | 6,733) | 6,873) |
| Total | 69,378) | 58,529) | 58,384) | 59,930) | 65,889) |
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).
The net property, plant, and equipment exhibit a U-shaped trajectory over the five-year period ending December 31, 2024. After a multi-year contraction in asset value, a significant expansion occurred in the final year, bringing total valuations to their highest level within the observed timeframe.
- Domestic Asset Volatility
- Assets within the United States experienced a steady decline from 2020 through 2023, decreasing from $59,016 million to $51,646 million. This downward trend was abruptly reversed in 2024, with domestic net property, plant, and equipment increasing to $62,604 million, representing a substantial capital reinvestment or acquisition phase.
- International Asset Stability
- The international segment demonstrated remarkable stability, with values fluctuating within a narrow range between $6,678 million and $6,883 million. The minimal variance suggests a strategic focus on maintaining existing international infrastructure rather than pursuing significant organic growth or expansion in these regions.
- Aggregate Geographic Concentration
- The total asset base is heavily concentrated in the United States, which consistently accounts for the vast majority of the company's net property, plant, and equipment. Consequently, the total asset trend mirrors the domestic trend almost exactly, falling from $65,889 million in 2020 to a trough of $58,384 million in 2022, before rising to $69,378 million by the end of 2024.
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