Occidental Petroleum (OXY) Risk Factor Changes

Moreover, laws and regulations governing cybersecurity and data privacy and the unauthorized disclosure of confidential, regulated or protected information pose increasingly complex compliance challenges and potential…

An Occidental subsidiary, Western Midstream Holdings, LLC, acts as the general partner of WES, a publicly traded master limited partnership.

An Occidental subsidiary acts as the general partner of WES, a publicly traded master limited partnership, which may involve potential legal liability.

Acquisitions, divestitures and other transactions may cause financial results to differ from the Company’s or investors’ expectations, may not deliver anticipated benefits and could disrupt current operations.

The Company’s production from CO2 EOR operations may decline if it is unable to obtain sufficient amounts of CO2.

The Company must also dispose of the surplus fluids produced from oil and gas operations, including produced water, either directly or through the use of third-party vendors.

Water and sand are essential inputs for the exploration and production of oil and gas.

Exploration is inherently risky and is subject to delays, misinterpretation of geologic or engineering data, unexpected geologic conditions or finding reserves of disappointing quality or quantity, which could have a…

•Title, property or access issues or border disputes and other associated risks that may affect its ability to profitably grow production, replace reserves and achieve its targeted returns.

•Increasing prices as a result of inflation;

•Escalating costs for, competition for, shortages of or delays in services, materials, supplies, equipment or labor or other supply chain constraints;

Oil, NGL and natural gas exploration and production activities are subject to numerous risks beyond the Company’s control, including the risk that drilling will not result in commercially viable oil, NGL or natural ga…

The Company may experience delays, cost overruns, losses or unrealized expectations in development efforts and exploration activities.

The Company’s oil and gas reserves and other significant financial statement items are estimates based on professional judgment and may be subject to revision.

In addition, the Company’s acquisition activities carry risks including the potential for less-than-expected reserves or production or changed circumstances, such as declines in oil, NGL and natural gas prices, unexpe…

It is difficult to predict the timing, likelihood and scope of such government and private actions and their ultimate effect on the Company, which could depend on, among other things, the type and extent of air emissi…

Collectively, international, federal, state and local government and private actions relating to air emissions may require the Company to incur additional operating and maintenance costs, including for service provide…

Health, safety and environmental laws and regulations and climate-related policies could have a material adverse effect on the Company’s financial condition, results of operations and cash flows.

•Loss of well location, acreage, expected production or related reserves;

•Regulatory investigations, claims, fines or penalties;

•Damage to or destruction of property and equipment, including property and equipment owned by third parties which the Company’s operations rely upon;

•Injuries or impacts to the Company’s workforce and local communities;

The Company’s operations, both onshore and offshore, face risks and hazards inherent to operating in the energy industry.

The Company is subject to actual and threatened claims, litigation, assessments, investigations and other proceedings, including proceedings by governments and regulatory authorities, involving a wide range of issues,…

•Developmental delays and cost overruns due to approval delays for, or denial of, drilling, construction, environmental and other regulatory approvals, permits and authorizations; and

•Confiscatory taxation or other adverse tax policies or currency controls;

•Public health crises or other catastrophic events, such as pandemics;

•Political instability, social unrest, terrorism, war or armed conflict;

The Company’s domestic and international operations are subject to extensive laws and regulations and may be adversely affected by the actions and decisions of many federal, state, local and international governments,…

Government actions, regulatory changes and political, economic and social instability may adversely affect the Company’s operations and results of operations.

The Company’s level of indebtedness may make it more vulnerable to adverse changes in general economic or industry conditions and could limit the Company’s ability to respond to changing business conditions.

In accordance with ASC Topic 740’s guidance on the accounting for uncertain tax positions, the Company has not recorded a tax benefit for the tentative cash tax refund or for the additional cash tax benefits realized…

Anadarko’s Tronox settlement may not be deductible for income tax purposes and the Company may be required to repay the tax refund Anadarko received in 2016 related to the deduction of the Tronox settlement payment.

Generally, the Company’s historical practice has been to remain exposed to the market prices of commodities at the corporate level.

•Adversely impact the ability of the Company’s partners to fund their working interest capital requirements.

•Reduce the amounts of the Company’s estimated proved oil, NGL and natural gas reserves;

•Cause the Company to delay or postpone capital projects;

•Reduce the amount of oil, NGL and natural gas that the Company can produce economically;

•Adversely affect the Company’s financial condition, results of operations, cash flows, ability to reduce debt, access to and cost of capital, and ability to finance planned capital expenditures or planned acquisition…

The long-term effects of these and other conditions on the prices of oil, NGL and natural gas are uncertain and there can be no assurance that the demand or pricing for the Company’s products will follow historic patt…

•The impact and uncertainty of significant health events, including pandemics and epidemics; and

•Additional or increased nationalization and expropriation activities by governments;

•Domestic and international laws, regulations, tariffs and taxes, shareholder activism or activities by advocacy groups that restrict the exploration, development, production, import or export of hydrocarbons and othe…

•The effect of energy conservation efforts and technological advances affecting energy consumption and supply;

•The price and availability of and demand for alternative and competing fuels;

•The domestic and international military and political environment, including uncertainty or instability resulting from an escalation or outbreak of armed hostilities or acts of terrorism in the United States or elsew…

•Domestic and international supplies of, and demand for, oil, NGL, natural gas and refined products;

The Company’s financial results correlate closely to the prices it obtains for its products, particularly oil and, to a lesser extent, NGL and natural gas.

Volatile global and local commodity pricing strongly affects the Company’s results of operations.

Third-party insurance may not provide adequate coverage or Occidental or its subsidiaries may be self-insured with respect to the related losses.

■Significant repair and remediation costs that increase its breakeven economics.

■Pollution and other environmental damage, including spillage or mishandling of recovered chemicals or fluids;

Occidental’s businesses may experience catastrophic events.

In addition, certain Occidental subsidiaries conduct some of their exploration in deep waters (greater than 1,000 feet) where operations, support services and decommissioning activities are more difficult and costly t…

■Response capabilities for personnel, equipment or environmental incidents.

■Failure of wells, equipment or facilities; and

■Remediation and other costs and regulatory changes resulting from oil spills, emissions or releases of hazardous substances or materials;

■Compliance with HSE and other laws and regulations;

■Oilfield service costs and availability;

■Limited number of partners available to participate in projects;

■Geological complexities and water depths associated with such operations;

■Hurricanes and other adverse weather conditions;

Occidental is vulnerable to risks associated with offshore operations that could negatively impact its operations and financial results.

Occidental’s operations and financial results could be significantly negatively impacted by its offshore operations.

cause the delay or cancellation of the development of naturally occurring CO2 sources or construction of plants that produce anthropogenic CO2 as a byproduct that can be purchased, thus limiting the amount of CO2 avai…

Occidental’s CO2 EOR operations are critical to Occidental’s long-term strategy.

In addition, Occidental must dispose of the surplus fluids produced from oil and gas operations, including produced water, directly or through the use of third-party vendors.

Occidental uses water and sand and is required to dispose of produced water.

Finally, increasing attention to climate change risks has resulted in an increased possibility of government investigations or claims and additional private litigation against Occidental without regard to causation or…

against companies or their shareholders or financial institutions in an effort to deter investment in oil and gas activities and take other actions intended to promote changes in business strategy for oil and gas comp…

There also have been efforts in the investment community, including investment advisers, financial institutions and certain sovereign wealth, pension and endowment funds, as well as political actors and other stakehol…

Occidental may face increased scrutiny from the investment community, customers, political advocacy groups, other stakeholders and the media (including social media) related to its emissions reduction and net-zero goa…

In addition, historical, current and forward-looking sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolv…

Occidental continues to develop new technologies and strategies to help position it to meet its emissions reduction and net-zero goals.

Occidental’s aspirations, goals and initiatives related to carbon management and overall sustainability expose it to numerous risks.

Occidental’s strategy to include carbon management in its product line is also dependent upon demand for carbon sequestration and related CO2 removal credits, offsets or other attributes.

are in various stages of development or implementation and may require more capital, or take longer to develop, than currently expected.

Certain of Occidental’s goals are dependent upon the successful implementation of new and existing technologies on an industrial scale, including the development of DAC technology and start-up operations at STRATOS.

Occidental’s results of operations depend on the extent to which it can execute new business strategies effectively relative to both the societal transition to a less carbon-intensive economy and laws, regulations and…

Occidental’s future results could be adversely affected if it is unable to execute new business strategies effectively.

In January 2025, President Trump announced numerous executive orders regarding climate, energy and environmental matters that, among other things, withdraw the U.S.

Global efforts have been made and continue to be made in the international community toward the adoption of international treaties or protocols that would address global climate change issues and impose reductions of…

Additionally, the SEC in March 2024 adopted climate disclosure rules that would require public companies to significantly increase disclosure of GHG emissions and strategies, targets, costs and risks associated with c…

increase inspection, recordkeeping, reporting, enforcement and controls on flaring, venting and equipment that emit methane and other compounds at oil and gas facilities.

Various U.S.

As part of its development of six proposed sequestration hubs, OLCV has filed multiple permit applications with the EPA for Underground Injection Control (UIC) Class VI CO2 injection wells in Louisiana and Texas.

Supplementing the EPA’s methane emissions reduction program, the BLM issued final regulations in April 2024 to restrict venting and flaring from oil and gas operations on federal lands.

Significantly expanding upon the EPA’s 2012 and 2016 regulations of methane emissions from certain new oil and gas operations, the EPA developed a methane emissions reduction program under the Clean Air Act and the IR…

Continuing political, social and industry attention to climate change has resulted in both existing and pending international agreements and national, regional and local legislation and regulatory programs to report o…

Climate change and further regulation of GHG and other air emissions may adversely affect Occidental’s businesses and results of operations.

If in the future Occidental’s cybersecurity measures are compromised or prove insufficient, the potential consequences to Occidental’s businesses and the communities in which it operates could be significant.

to comply with these data privacy requirements or other applicable laws and regulations in this area could lead to a loss of sensitive information and result in significant regulatory or other penalties and legal liab…

While Occidental has experienced cyber attacks in the past, it has not suffered any material losses.

■Damaging Occidental’s reputation, subjecting it to potential financial or legal liability, regulatory fines and penalties and requiring it to incur significant costs, including compliance costs and costs to repair or…

■Resulting in events of non-compliance which could then lead to regulatory fines or other penalties and legal liability; and

■Adversely impacting the natural gas market;

■Slowing or halting commodities trading, thus preventing Occidental from marketing its production or engaging in hedging activities;

■Delaying or preventing Occidental from producing, transporting, processing and marketing its production;

■Resulting in supply chain disruptions, which could delay or halt Occidental’s construction and development projects;

■Resulting in a disruption of the manufacturing and marketing of its products or a potential HSE hazard;