Occidental and 1PointFive Receive EPA Approval for CO₂ Sequestration at STRATOS DAC Facility

Occidental and its subsidiary 1PointFive have secured Class VI permits from the U.S. Environmental Protection Agency to sequester carbon dioxide at STRATOS, their Direct Air Capture (DAC) facility in Ector County, Texas. This marks the first time such permits have been issued for a DAC project and is a key step in launching commercial operations for what will be the world’s largest DAC facility.

Set to begin operations in 2025, STRATOS is designed to capture up to 500,000 tonnes of CO₂ annually. The EPA’s approval confirms that Occidental’s storage technologies and monitoring systems meet or exceed federal standards for underground injection. The project supports U.S. energy security and aims to help organizations reduce emissions or produce low-carbon fuels and products.

Occidental continues to position itself as a leader in carbon management, with STRATOS representing a major advance in scalable climate solutions. The development also reinforces the strategic importance of carbon capture infrastructure in transitioning to a lower-carbon economy.

Occidental Raises $893 Million Through Warrant Exercise Offer at Reduced Price

Occidental Petroleum announced the successful completion of its warrant exercise offer at a temporarily reduced price of $21.30 per warrant. The offer, which expired on March 31, resulted in the tendering of 41,941,075 warrants, including 69,166 under guaranteed delivery procedures. Excluding the guaranteed deliveries, Occidental will issue 41,871,909 shares of common stock and receive $891.9 million in proceeds. If all guaranteed deliveries are completed, the company will issue an additional 69,166 shares and collect another $1.5 million.

Untendered warrants remain valid at their original $22.00 exercise price. The initiative aimed to strengthen Occidental’s balance sheet while offering shareholders a temporary incentive to convert their warrants.

Occidental is a major energy company with a strong presence in U.S. oil and gas production and a growing low-carbon business through its Oxy Low Carbon Ventures. The company emphasized its continued focus on executing strategies that support long-term growth while advancing emissions-reduction technologies.

Occidental has reported its fourth-quarter 2024 financial results, highlighting progress in debt reduction, operational performance, and shareholder returns. The company completed its near-term debt repayment target of $4.5 billion and announced an additional $1.2 billion in planned divestitures for early 2025. Occidental also increased its quarterly dividend by 9% to $0.24 per share, payable in April.

Operationally, the company generated $3.6 billion in operating cash flow and $1.4 billion in free cash flow before working capital. Total production averaged 1,463 thousand barrels of oil equivalent per day, exceeding guidance expectations. The midstream, marketing, and chemical segments also outperformed income projections.

Occidental reported a net loss of $297 million for the quarter, or $0.32 per diluted share, while adjusted income stood at $792 million, or $0.80 per diluted share. The loss was primarily due to a $1.1 billion increase in long-term environmental liabilities following a federal court ruling, which the company is appealing.

The company’s oil and gas segment posted a pre-tax income of $1.2 billion. Crude oil prices saw a slight decline, with an average realized price of $69.73 per barrel, while domestic natural gas prices surged by 215% from the previous quarter.

Occidental ended 2024 with 4.6 billion barrels of oil equivalent in proved reserves, marking an increase from 4.0 billion BOE the previous year. The company’s all-in reserves replacement was 230%, with an organic reserves replacement of 112%, indicating strong long-term sustainability.

The chemicals division (OxyChem) delivered a pre-tax income of $270 million, outperforming expectations despite lower polyvinyl chloride pricing and seasonal demand declines. The midstream and marketing segment recorded a pre-tax loss of $134 million, partly due to net derivative losses.

Occidental reaffirmed its commitment to financial discipline and long-term growth, emphasizing operational efficiency and strategic capital allocation.