OCCIDENTAL PETROLEUM CORP /DE/ (OXY) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that OCCIDENTAL PETROLEUM CORP /DE/ surfaced in its latest filing.

• Completion of the OxyChem Transaction increased the Company's exposure to fluctuations in oil, NGL and natural gas markets.
• As of December 31, 2025, there were no commodity hedges in place.December 31, 2025
• Anadarko's Tronox settlement payment of $5.2 billion under a 2014 settlement agreement is under dispute by the IRS, which disallowed the deduction; the matter is pending before the U.S. Tax Court following trial and closing arguments, and the total repayment obligation could be approximately $2.3 billion including interest as of December 31, 2025.December 31, 2025
• The IRA enacted a 15% corporate alternative minimum tax (CAMT) and a 1% excise tax on net share repurchases.
• The OBBBA made permanent the 21% corporate tax rate, reinstated 100% bonus depreciation on assets placed in service after January 19, 2025, reinstated the deduction for certain research and development expenses, adjusted deduction limits, imposed new environmental levies, and imposed limitations on certain clean energy credits.January 19, 2025
• Recent executive orders and proposals to rescind or reduce funding for low-carbon and clean energy tax credit programs create uncertainty regarding long-term realization of such credits.
• Occidental entered into a guaranty in favor of Berkshire Hathaway to guarantee indemnification obligations of its subsidiaries.
• Western Midstream Holdings, LLC, an Occidental subsidiary, acts as the general partner of WES, a publicly traded master limited partnership, which may involve potential legal liability including claims of breach of fiduciary duties or conflicts of interest.