A：Oxy's operations in 2025 were characterized by exceptional execution, which led to record production and cost control. The company set a new annual production record of 1.65 million barrels of oil equivalent per day, exceeding the high end of guidance while spending $100 million less in oil and gas capital than originally planned. They reduced annual operating expenses by $275 million and achieved a lease operating expense per barrel equivalent since 2021. Midstream operations also performed strongly, with adjusted pretax income surpassing guidance by more than $500 million and record safety performance across global operations.

A：Financial highlights for Oxy in 2025 included the generation of $4.3 billion in free cash flow before working capital on a normalized basis, a year-over-year increase in cash flow from operations of 27%, and debt reduction of $1 billion. The company completed the sale of OxyChem, which, along with other measures, enabled a reduction in principal debt to $15 billion. Oxy also announced a tender offer expected to further reduce principal debt to $12 billion, reflecting disciplined capital allocation and a focus on balance sheet strength.

A：Oxy's priorities and capital plans for 2026 focus on maintaining the production base through safe and reliable operations, delivering a sustainable and growing dividend, and continuing to strengthen the financial position with opportunities for share repurchases and further net debt reductions. The company plans to enter 2026 with a leaner and more efficient structure, with capital spending ranging from $5.5 billion to $5.9 billion. This budget is expected to ensure a sustainable production rate of approximately 45 million barrels of oil equivalent per day and provide flexibility to respond to commodity costs and price improvements while maximizing free cash flow.

A：Oxy highlights achieving record annual production of oil and gas, reducing total spending, new well capital costs down, and strong performance across all US onshore basins with new wells outperforming industry standards. They also achieved record production and uptime in Algeria, Gulf of America, and US onshore EOR facilities.

A：The key operational priorities for Oxy in the future are extending and improving low-cost resource base, driving further cost efficiency, and generating resilient free cash flow at any price. Oxy also plans to deliver another $1 billion of cost savings in 2026.

A：Oxy has made great progress with the Stratos project, with phase II in the final stage of startup and expected online in Q2. Phase II incorporates learnings from previous activities and will begin commissioning in Q2. Oxy reallocated up to $1 billion of capital, which further enabled a $400 million reduction in US onshore capital, while still delivering 1% production growth.

A：Oxy plans to invest in midcycle projects like Gulf of America water flood projects and unconventional EOR, with an increase of $400 million in capital from script. Oxy aims to deliver significant incremental recovery and lower the base decline rate and operating expenses.

A：In the fourth quarter, Oxy generated an adjusted profit of 31 cents per diluted share and a reported loss of 14 cents per diluted share. The financial results were driven by a sustained focus on cost efficiencies and operational improvements, resulting in approximately $1 billion in free cash flow despite lower realized oil prices.

A：Oxy's focus on cost efficiencies and operational improvements has enhanced its financial flexibility and reduced its cost structure. This resulted in a stronger balance sheet, lower principal debt, improved leverage metrics, and the ability to reduce debt, which in turn supports higher free cash flow and enables investment in sustaining capital and growth initiatives.

A：The total capital for the year is expected to range between $10 billion and $12 billion, weighted to the first half. The midpoint represents a reduction from the prior year, primarily driven by efficiency gains and optimization of activity levels.

A：Investment in US onshore is expected to decrease by $400 million due to ongoing efficiency gains and a reduction in Permian activity levels. Meanwhile, investment in the Gulf of America, Permian, and international projects is set to increase by approximately $200 million to support mid cycle investments and sustaining capital improvements.

A：Earnings in 2026 are expected to be slightly lower as gas transportation optimization opportunities narrow with increased Permian gas takeaway capacity. In the back half of the year, improvements in crude marketing out of the Permian are expected to partially offset this impact.

A：Jordan Tanner will be taking on a leadership role in the Gulf of America, advancing portfolio opportunities. Bob Tuesday J Cole will become Vice President of Investor Relations, reporting to Sunil Baba, bringing deep operational and leadership experience.

A：The lower capital expenditure guide relative to the previous quarter is a result of the team's enhanced process and the ability to cut costs and find efficiencies. A combination of structural savings, reallocation, and operational improvements contributed to the reduction, with specific cost savings detailed in the areas of oil and gas and US unconventional projects.

A：Operational efficiencies and production improvements are being achieved through lower activity levels, with fewer rigs and frac cores, alongside significant structural cost savings. These efforts are expected to be expanded in the future.

A：Drilling performance in Algeria has improved significantly, as evidenced by the Horn Mountain Water Flood project. The team reduced capital costs by leveraging existing systems and only augmenting with new filters and pumps, while still maintaining original injection dates.

A：The project is expected to support a sustaining production profile in the Gulf for the next several years at a low production rate, which is crucial for the reliability and decline management of the region's production.

A：Unconventional resources contribute significantly to the company's production and reserves, with the US unconventional segment accounting for almost half of the total. This has led to an improvement in inventory, with both primary and secondary benches providing substantial value.

A：The company is focusing on deleveraging by reducing debt, particularly near-term maturing债务, and is on track to meet the previously set targets. The strategy includes paying down debt without specifying a time frame for reaching the next target, prioritizing a sustainable and growing dividend, and continuing to invest in operational efficiencies and mid-cycle projects. The company aims to balance cash build with return of capital opportunities and is considering resuming preferred equity redemption in August, which would benefit from a lower redemption premium and no script dollar per share return of capital trigger.

A：Next year's capital for US onshore is expected to show modest growth depending on the efficiency and well performance in the Gulf of America. This is influenced by factors such as cost efficiency and sustaining capital, which has been reduced through these means over the last few years.

A：The international capital investment is anticipated to be flat compared to the current year, influenced by the absence of new programs starting in areas like Gulf of America and LCV, and the completion of Stratos this year which should lower capital into Q4.

A：Structural savings and operational improvements in the US onshore include optimizing mid-cycle projects, drilling more wells per rig per year, increasing the number of lateral wells, improving completion techniques such as Simo Frac, and enhancing development efficiency.

A：The company continues to look at optimizing its exploration program on a multi-year perspective. This includes ongoing work on the Horn Mountain project and the water project, focusing on schedule and cost profile optimization, with an expected uplift in late 2027.

A：Anticipated production growth is modest with sustaining capital, driven by savings across various categories, well productivity, and capital reallocation. Permian production is expected to grow, while Rockies production is down, but this is mainly a transition year into the Powder River Basin, which is anticipated to show better growth towards the end of the year.

A：The transition into the Powder River Basin will affect production dynamics by moving from a lower oil cut in the DJ Basin to a higher oil cut in the Powder River Basin, resulting in increased oil production and a potential change in the Boe (barrel of oil equivalent) basis. The wells online are very steady throughout the year, indicating a transition in the type of production rather than a decline in overall well productivity.

A：Sustaining capital is defined to keep production flat in a $40 environment, excluding multi-year and mid-cycle projects that do not support near-term production. It is related to production in that it maintains existing levels without growing production. Project costs are backed out to determine sustaining capital, with the calculation showing a reduction from an initial estimate of 5.7 billion to 4.1 billion due to operational efficiency.

A：The 2025 sustaining capital budget was 4.5 billion, which was intended to support 1.42 million boe per day. Adjusted for inflation, it comes out to around 4.2 billion. However, actual sustaining capital came in at 4.1 billion while supporting an additional production of 1.1 billion, indicating that the capital budget was higher and operational efficiency helped in reducing it.

A：The company's top priority in terms of return of capital is to have a sustainable and growing dividend. Lowering sustaining capital is key to sustaining and growing the dividend. This strategy is aimed at ensuring financial stability and growth for the company.

A：Stratos is ramping up this year, which will lead to a reduction in capital roll-offs of about $100 million next year. The company anticipates being able to bring in partners due to the economics and de-risking of future opportunities, which could positively impact capital requirements and project progression.

A：The anticipated levelized EBITDA for late 2028 is in the ly to $130 million range. The company is optimistic about finding opportunities to improve operations like in other projects and is working on how to reduce costs while adding capacity. This includes ongoing efforts to optimize operations and add value.

A：The new C has observed an outstanding resource base that has been improving through narrowing focus and organic efforts. The subsurface work and well performance have been particularly impressive, with projects like the Gulf of America water floods contributing to a lower cost structure, reduced decline, and lower sustaining capital. Production reliability efforts have been very impressive, and the integration of technology like AI and digital technology for remote operations demonstrates effective use of resources and enhanced safety and efficiency.

A：The company is cautious about 2024, focusing on the fundamentals rather than short-term geopolitical volatility. They believe that while prices may be driven up by geopolitical events, these are unlikely to be sustainable. By the end of 2024 and into 2025, they expect a shift in fundamentals as the industry replaces production and improves reserve replacement ratios, which are currently below the industry average. They foresee a return to a more balanced supply and demand situation by 2027, supported by efforts to enhance production from existing reservoirs and increase international presence.