OCCIDENTAL PETROLEUM CORP /DE/OXY
OCCIDENTAL PETROLEUM CORP /DE/ Debt Disclosure
| NOTE 6 - LONG-TERM DEBT | ||
As of December 31, 2024 and 2023, Occidental’s debt consisted of the following:
| millions | 2024 | 2023 | ||||||
2.900% senior notes due 2024 | — | 654 | ||||||
6.950% senior notes due 2024 | — | 291 | ||||||
3.450% senior notes due 2024 | — | 111 | ||||||
3.500% senior notes due 2025 | — | 137 | ||||||
5.875% senior notes due 2025 | 536 | 606 | ||||||
5.500% senior notes due 2025 | 465 | 465 | ||||||
5.550% senior notes due 2026 | 870 | 870 | ||||||
3.200% senior notes due 2026 | 182 | 182 | ||||||
3.400% senior notes due 2026 | 284 | 284 | ||||||
-year term loan due 2026 (6.249% as of December 31, 2024) | 2,700 | — | ||||||
7.500% debentures due 2026 | 112 | 112 | ||||||
8.500% senior notes due 2027 | 489 | 489 | ||||||
3.000% senior notes due 2027 | 216 | 216 | ||||||
7.125% debentures due 2027 | 150 | 150 | ||||||
7.000% debentures due 2027 | 48 | 48 | ||||||
5.000% senior notes due 2027 | 600 | — | ||||||
6.625% debentures due 2028 | 14 | 14 | ||||||
7.150% debentures due 2028 | 232 | 232 | ||||||
7.200% senior debentures due 2028 | 82 | 82 | ||||||
6.375% senior notes due 2028 | 578 | 578 | ||||||
7.200% debentures due 2029 | 135 | 135 | ||||||
7.950% debentures due 2029 | 116 | 116 | ||||||
8.450% senior debentures due 2029 | 116 | 116 | ||||||
3.500% senior notes due 2029 | 286 | 286 | ||||||
5.200% senior notes due 2029 | 1,200 | — | ||||||
Variable rate bonds due 2030 (5.710% and 5.750% as of December 31, 2024 and 2023, respectively) | 68 | 68 | ||||||
8.875% senior notes due 2030 | 1,000 | 1,000 | ||||||
6.625% senior notes due 2030 | 1,449 | 1,449 | ||||||
6.125% senior notes due 2031 | 1,143 | 1,143 | ||||||
7.500% senior notes due 2031 | 900 | 900 | ||||||
7.875% senior notes due 2031 | 500 | 500 | ||||||
5.375% senior notes due 2032 | 1,000 | — | ||||||
5.550% senior notes due 2034 | 1,200 | — | ||||||
6.450% senior notes due 2036 | 1,727 | 1,727 | ||||||
| Zero Coupon senior notes due 2036 | 673 | 673 | ||||||
0.000% loan due 2039 (CAD denominated) | 18 | 19 | ||||||
4.300% senior notes due 2039 | 247 | 247 | ||||||
7.950% senior notes due 2039 | 325 | 325 | ||||||
6.200% senior notes due 2040 | 737 | 737 | ||||||
4.500% senior notes due 2044 | 191 | 191 | ||||||
4.625% senior notes due 2045 | 296 | 296 | ||||||
6.600% senior notes due 2046 | 1,117 | 1,117 | ||||||
| (continued on next page) | ||||||||
| millions (continued) | 2024 | 2023 | ||||||
4.400% senior notes due 2046 | 424 | 424 | ||||||
4.100% senior notes due 2047 | 258 | 258 | ||||||
4.200% senior notes due 2048 | 304 | 304 | ||||||
4.400% senior notes due 2049 | 280 | 280 | ||||||
6.050% senior notes due 2054 | 1,000 | — | ||||||
7.730% debentures due 2096 | 58 | 58 | ||||||
7.500% debentures due 2096 | 60 | 60 | ||||||
7.250% debentures due 2096 | 5 | 5 | ||||||
| Total borrowings at face value | $ | 24,391 | $ | 17,955 | ||||
| Adjustments to book value: | ||||||||
| Unamortized premium, net | 1,037 | 1,152 | ||||||
| Debt issuance costs | (105) | (106) | ||||||
| Net book value of debt | $ | 25,323 | $ | 19,001 | ||||
| 658 | 591 | |||||||
| 135 | 146 | |||||||
| Total debt and finance leases | $ | 26,116 | $ | 19,738 | ||||
Less current maturities of finance leases | (135) | (146) | ||||||
| Less current maturities of long-term debt | (1,003) | (1,056) | ||||||
| Long-term debt, net | $ | 24,978 | $ | 18,536 | ||||
DEBT MATURITIES
As of December 31, 2024, future principal payments of debt were approximately $24.4 billion, of which $1.0 billion is due in 2025, $4.1 billion in 2026, $1.5 billion in 2027, $0.9 billion in 2028, and $16.9 billion due in 2029 and thereafter.
ZERO COUPONS
The Zero Coupons have an aggregate principal amount due at the 2036 maturity of approximately $673 million. The Zero Coupons can be put to Occidental in October of each year, in whole or in part, for the then-accreted value of the outstanding Zero Coupons. The Zero Coupons can next be put to Occidental in October 2025, which, if put in whole, would be $381 million at such date. Occidental currently has the ability to meet this obligation and may use available capacity under the RCF to satisfy the put should it be exercised.
FAIR VALUE OF DEBT
Occidental estimates the fair value of fixed-rate debt based on the quoted market prices for those instruments or on quoted market yields for similarly rated debt instruments, taking into account such instruments’ maturities. The estimated fair values of Occidental’s debt as of December 31, 2024, and 2023, the majority of which were classified as Level 1, were approximately $24.0 billion and $18.1 billion, respectively. Occidental’s exposure to changes in interest rates relates primarily to its variable-rate, long-term debt obligations. As of December 31, 2024, and 2023, variable-rate debt constituted approximately 11% and 0.4%, respectively, of Occidental’s total debt.
DEBT RATINGS
As of December 31, 2024, Occidental’s long-term debt was rated Baa3 by Moody’s Investors Service, BBB- by Fitch Ratings and BB+ by Standard and Poor’s. Any downgrade in credit ratings could impact Occidental's ability to access capital markets and increase its cost of capital. In addition, Occidental or its subsidiaries may be requested, elect to provide or in some cases be required to provide collateral in the form of cash, letters of credit, surety bonds or other acceptable support as financial assurance of their performance and payment obligations under certain contractual arrangements such as pipeline transportation contracts, oil and gas purchase contracts and certain derivative instruments; certain permits, including with respect to carbon capture, utilization and storage activities; and environmental remediation matters. Following the CrownRock Acquisition in August 2024, Occidental's current credit ratings were reaffirmed.
As of the date of this filing, Occidental had provided required financial assurances through a combination of cash, letters of credit and surety bonds and had not issued any letters of credit under the RCF or other committed facilities.
DEBT ACTIVITY
In connection with the CrownRock Acquisition, Occidental issued $9.7 billion in new debt in July 2024 and assumed $1.2 billion of existing CrownRock debt in August 2024. Occidental used proceeds from divestitures and cash on hand to repay $4.5 billion of debt, which included the satisfaction and discharge of the 5.000% senior notes due 2029 that were assumed with the CrownRock Acquisition. The following table summarizes Occidental’s debt activity in 2024:
| millions | Borrowings at face value | ||||
| Total borrowings at face value as of December 31, 2023 | $ | 17,955 | |||
| Borrowings | |||||
364-day term loan due 2025 | $ | 2,000 | |||
-year term loan due 2026 | 2,700 | ||||
5.000% senior notes due 2027 | 600 | ||||
5.200% senior notes due 2029 | 1,200 | ||||
5.375% senior notes due 2032 | 1,000 | ||||
5.550% senior notes due 2034 | 1,200 | ||||
6.050% senior notes due 2054 | 1,000 | ||||
| Total borrowings | $ | 9,700 | |||
| Debt assumptions related to CrownRock | |||||
5.625% senior notes due 2025 | $ | 868 | |||
5.000% senior notes due 2029 | 376 | ||||
| Total debt assumptions | $ | 1,244 | |||
| Repayments | |||||
6.950% senior notes due 2024 | $ | (291) | |||
3.450% senior notes due 2024 | (111) | ||||
2.900% senior notes due 2024 | (654) | ||||
364-day term loan due 2025 | (2,000) | ||||
5.625% senior notes due 2025 | (868) | ||||
5.875% senior notes due 2025 | (70) | ||||
3.500% senior notes due 2025 | (137) | ||||
5.000% senior notes due 2029 | (376) | ||||
| Total repayments | $ | (4,507) | |||
| Foreign currency revaluation on CAD denominated debt | $ | (1) | |||
| Total borrowings at face value as of December 31, 2024 | $ | 24,391 | |||
REVOLVING CREDIT FACILITY
In February 2024, Occidental entered into a Third Amended and Restated Credit Agreement for the RCF extending its maturity date to June 30, 2028. In May 2024, Occidental amended the RCF to add an additional $150 million commitment, increasing the borrowing capacity to $4.15 billion. The interest rate margin and the facility fee rates are subject to adjustments based on Occidental’s performance on specified sustainability target thresholds with respect to absolute reductions in GHG emissions from its worldwide operated assets. No amounts were drawn under the facility as of December 31, 2024.
Borrowings under the RCF bear interest at SOFR benchmark rates, plus a margin based on Occidental’s senior debt ratings. The facility has similar terms to other debt agreements and does not contain material adverse change clauses or debt ratings triggers that could restrict Occidental’s ability to borrow, or that would permit lenders to terminate their commitments or accelerate debt repayment. The facility provides for the termination of loan commitments and requires immediate repayment of any outstanding amounts if certain events of default occur. As of the date of this filing, Occidental had no drawn amounts under the RCF. In 2024, Occidental paid average annual facility fees of 0.20% on the total commitment amount.
RECEIVABLES SECURITIZATION FACILITY
In July 2024, Occidental amended and extended its existing receivables securitization facility to July 30, 2027. In February 2023, Occidental amended the facility to expand its available borrowing capacity to $600 million. As of December 31, 2024, the facility had $600 million of available borrowing capacity and no drawn amounts. The amended facility includes adjustments based on the same specified sustainability target thresholds as contained in the RCF.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Feb 18, 2025 | Showing above |
| 2023 | Feb 14, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Feb 21, 2019 | |
| 2017 | Feb 23, 2018 | |
| 2016 | Feb 23, 2017 | |
| 2015 | Feb 26, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.