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Energy

Occidental Petroleum Corporation (OXY)

Energy $54.6B market cap

Data as of July 13, 2026

Environment
38.00
People
68.00
Leadership
62.00

Environment story

Occidental scores 38/100 on Environmental metrics, reflecting fundamental structural challenges inherent to fossil-fuel extraction. The company operates 1.43 million BOEPD of oil, gas, and NGL production—a core revenue base incompatible with aggressive decarbonization. Scope 3 emissions (product usage) are undisclosed and rising with production volumes. Net-zero target is not disclosed; company emphasizes DAC and CCUS investments (STRATOS facility targeting 500,000 CO₂ tonnes/year by completion) but these are offset-heavy and do not reduce operational extraction or combustion risk. Scope 1&2 emissions metrics are not disclosed in the source filings. Legacy environmental liabilities from Anadarko acquisition and OxyChem divestiture (retained tort and remediation claims) create ongoing contamination risk. Regulatory headwinds (methane controls, GHG pricing, state-level water restrictions) pose material cost and operational constraints. Company maintains zero routine flaring and invests in emissions-reduction projects, but these are marginal against the scale of hydrocarbon production.

Criticisms on file

  • Scope 3 emissions undisclosed and rising. Company is primary oil/gas producer (1.43 million BOEPD); product combustion represents majority of carbon footprint but is not publicly quantified or committed to reduction targets.
    Source: OXY 10-K 2025, Business & Properties section; MD&A Current Business Outlook.
  • No public net-zero target disclosed. Company emphasizes DAC and CCUS as decarbonization strategy, but these are offset-based rather than operational emissions cuts.
    Source: OXY 10-K 2025 Risk Factors; MD&A; Proxy Statement highlights STRATOS and OLCV but do not commit to hard 2030/2035/2045 net-zero year.
  • Legacy environmental liabilities retained from OxyChem divestiture (sale to Berkshire Hathaway, January 2026). Occidental retained environmental tort claims and contamination at historical sites; subsidiary ERH to manage remediation over many years. Estimated costs and timeline uncertain.
    Source: OXY 10-K 2025, MD&A, OXYCHEM TRANSACTION section; Risk Factors—'may be required to repay' and environmental indemnification obligations.
  • Anadarko Tronox settlement tax liability risk. Company may be required to repay $2.3 billion in tax refunds (plus interest) if IRS disallowance upheld. Underlying issue: $5.2 billion settlement for Kerr-McGee/Tronox environmental liabilities. Matter pending U.S. Tax Court.
    Source: OXY 10-K 2025, Risk Factors; Note 9 Income Taxes; Note 12 Lawsuits.
  • Water disposal and seismic activity. States have curtailed produced-water disposal and suspended permits in seismic-response areas; company faces regulatory, cost and operational constraints in disposal operations, particularly in deep-well injection areas.
    Source: OXY 10-K 2025, Risk Factors—'The Company's operations could be adversely affected if it is unable to source water or sand or dispose of surplus fluids.'
  • Climate-related policy volatility. OBBBA and IRA reforms created uncertainty in clean-energy tax credits; company faces risks from potential repeal or limitation of low-carbon incentives. Environmental levies and bonus-depreciation clawbacks noted.
    Source: OXY 10-K 2025, Risk Factors—'Government actions, regulatory changes and political, economic and social instability.'

Disclosed initiatives

  • STRATOS Direct Air Capture Facility
    First large-scale DAC facility in Ector County, Texas; designed to capture up to 500,000 tonnes CO₂/year. Operations expected to begin 2026 with 250,000 tonnes initial capacity. Capital investment ongoing; part of OLCV subsidiary.
    Carbon offset infrastructure; does NOT reduce operational emissions. Greenwashing flag: offsets without operational cuts.
  • Emissions Reduction Projects
    Implemented projects involving hundreds of facilities, wells and thousands of equipment pieces across U.S. oil & gas operations. Specific reductions not quantified.
    Marginal operational improvements; scale unclear relative to 1.43 million BOEPD production base.
  • Zero Routine Flaring
    Sustained zero routine flaring in U.S. oil and gas operations in 2025.
    Methane control; standard industry practice, not differentiating.
  • CO₂ EOR Operations
    Leverages naturally-occurring and anthropogenic CO₂ for enhanced oil recovery. CO₂ from STRATOS and third-party sources used to drive oil production.
    Enables higher oil output via CO₂ utilization; does not reduce product-level emissions.

Social story

Occidental scores 68/100 on Social metrics. CEO-to-median-worker pay ratio is estimated at approximately 84:1 (well below the 200:1 penalty threshold), reflecting moderate executive compensation discipline. Workforce is small (10,412 total in continuing operations post-OxyChem) with only 409 union employees (~4%), indicating minimal union presence and low documented labor disputes. Leadership diversity metrics are not fully disclosed, but board composition shows 4 of 10 directors are women (40%) and 6 of 10 are independent non-executive; executive-level (NEO) diversity not quantified. Safety performance is strong: 0.07 TRIR in 2025 (best-ever record); zero recordable incidents among management. Supply-chain ethics (DRC cobalt, lithium mining) are not addressed in disclosed documents; OxyChem sale reduced chemical-segment human-rights audit scope. Employee turnover and engagement metrics are not disclosed. Compensation structure includes annual cash incentive (ACI) tied to free cash flow and TSR; >94% shareholder support for Say-on-Pay over past 5 years suggests alignment. No active union-suppression or major strikes documented in past 24 months.

Criticisms on file

  • Leadership diversity not fully disclosed. Board shows 40% women (4 of 10); executive/NEO diversity breakdown not separately reported. Workforce racial/ethnic composition not disclosed in source filings.
    Source: OXY Proxy Statement 2026, Director biographies and compensation tables; 10-K workforce composition table does not include race/ethnicity breakdown.
  • OxyChem divestiture removed chemical-segment human-rights and labor-practice oversight. Sale to Berkshire Hathaway (January 2026) transferred chemical operations; legacy environmental and tort liabilities retained by parent. Labor practices at divested entity no longer under Occidental governance.
    Source: OXY 10-K 2025, MD&A OXYCHEM TRANSACTION section; Risk Factors.
  • Supply-chain ethics (cobalt, lithium, conflict minerals) not addressed in disclosed documents. Company develops lithium through OLCV subsidiary but no modern slavery statement, forced-labor policy, or conflict-minerals disclosure found in 10-K or Proxy.
    Source: Absence of disclosures in OXY 10-K 2025 and Proxy 2026; no sustainability report provided in source documents.
  • Employee turnover and engagement metrics not disclosed. Retention programs described (ERGs, STEP, mental health) but no quantitative turnover rate or engagement survey results provided.
    Source: OXY 10-K 2025, Human Capital Resources section; no turnover rate, engagement index, or attrition data disclosed.

Disclosed initiatives

  • Health & Safety Program
    Operating Management System sets expectations; empowers employees/contractors to stop unsafe work. Focus on reducing incident severity and harmonizing safety systems. Achieved 0.07 TRIR in 2025 (best-ever); sustained zero routine flaring.
    Strong HSE culture; demonstrates commitment to workforce protection and community safety.
  • Employee Resource Groups (ERGs)
    Voluntary groups promoting peer engagement, education and inclusion for employees with common interests. Support diversity and sense of belonging.
    Informal diversity and inclusion mechanism; scope and participation not quantified.
  • Balanced Workplace Program
    Eligible office-based employees may work three days in office, two days remotely per week.
    Work-life balance and flexibility; retention support.
  • Strategic Technical Excellence Program (STEP)
    Recruits, develops and retains geoscientists, engineers, scientists and petrotechnical professionals. Technical, non-managerial career path; Chief Petrotechnical Officer reports directly to COO.
    Talent attraction and retention in specialized technical roles; innovation driver.
  • Enhanced Mental Health Benefits
    Cost-free virtual/in-person mental health support for employees and dependents covering anxiety, depression, stress, parenting, relationships, sleep.
    Employee well-being and retention.
  • Executive Compensation Alignment
    Annual cash incentive tied to free cash flow (2025 metric change from CROCE), TSR and operational performance. Long-term incentives (PSUs/RSUs) tied to relative TSR and CROCE (subject to potential future changes). >94% shareholder support for Say-on-Pay over 5 years.
    Aligns executive incentives with shareholder returns and operational discipline. Responsive to shareholder feedback (2025 FCF metric adoption).

Governance story

Occidental scores 62/100 on Governance metrics. Board independence is strong: 9 of 10 directors are independent (~90%); Jack B. Moore (Chairman since 2022) is independent non-executive. No dual-class share structure exists (single common stock class with equal voting rights per one-share-one-vote). Board committees are well-structured with independent chairs and membership: Audit, Compensation, Environmental/HSE, Sustainability/Shareholder Engagement, and Governance/Nominating. Directors average ~85% tenure on the Board (ranging from newly appointed to long-tenured); refreshment is active (one-third of independent directors joined within past 5 years). Board attended 100% of 2025 meetings; independent directors held 5 executive sessions. However, lobbying expenditures are not separately disclosed; company engages in policy advocacy on climate, taxation and trade matters but annual spend is not quantified. Regulatory fines/penalties: Anadarko Tronox settlement tax indemnification ($2.3 billion potential liability) is disclosed but not an active SEC enforcement action. Company disclosed two excluded shareholder proposals for 2026 (management determined exclusion bases under Rule 14a-8) but details of proposals not provided in source filings. No material antitrust, SEC consent decrees, or ongoing fraud-related proceedings disclosed.

Criticisms on file

  • Lobbying expenditures not disclosed. Company engages in policy advocacy on climate regulation, taxation (e.g., IRA/OBBBA impacts, windfall profit taxes), trade policy and energy market policy. Annual lobbying spend not quantified in 10-K or Proxy.
    Source: OXY 10-K 2025, Risk Factors section references 'shareholder activism or activities by advocacy groups' and 'government policies'; MD&A notes tariff policy and tax law changes but does not disclose company's lobbying budget.
  • Anadarko Tronox tax settlement indemnification ($2.3 billion potential liability). IRS disallowed deduction for $5.2 billion 2014 Anadarko settlement payment (Kerr-McGee environmental liabilities); matter pending U.S. Tax Court. Company has not recorded a tax benefit for the tentative refund; uncertain tax position accrual established.
    Source: OXY 10-K 2025, Risk Factors; Note 9 Income Taxes; Note 12 Lawsuits, Claims, Commitments and Contingencies.
  • Shareholder proposal exclusions (2026 Annual Meeting). Company excluded two shareholder proposals under Rule 14a-8 in November 2025 (after SEC announced it would no longer substantively review no-action requests). Management engaged with proponents post-exclusion. Specific proposal topics not disclosed in proxy materials provided.
    Source: OXY Proxy Statement 2026, 'Meaningful Dialogue with Shareholders' section and footnote referencing SEC filing dated December 29, 2025.
  • Environmental compliance and regulatory risks. Company faces extensive HSE/environmental laws, regulations and enforcement; GHG emissions limits, methane controls, water use restrictions, waste management and wildlife-protection requirements create cost and operational uncertainty. Company discloses 'material adverse effect' risk from climate-related policies and regulatory changes but does not quantify compliance costs or penalties.
    Source: OXY 10-K 2025, Risk Factors—'Health, safety and environmental laws and regulations and climate-related policies could have a material adverse effect'; Environmental Expenditures section (costs not separately quantified by category).
  • Cybersecurity incident history. Company discloses past cyber-attacks and expects threats to continue evolving. No quantified cyber-breach disclosures or remediation costs provided in source filings.
    Source: OXY 10-K 2025, Risk Factors—'The Company is exposed to cybersecurity, digital infrastructure and data security risks.'

Disclosed initiatives

  • Board Composition & Independence
    10-member board with 9 independent directors (90%). Mix of tenures: one-third of independent directors appointed within past 5 years, balance longer-tenured for continuity. Skills matrix discloses core competencies: environmental/HSE, executive compensation, financial reporting, industry background, international experience, public company executive, risk management.
    Strong governance structure; regular refreshment with diverse skill sets and independent oversight.
  • Executive Sessions of Independent Directors
    Independent directors held 5 executive sessions in 2025 (no management present). Independent Chairman Jack B. Moore presided.
    Direct board-level oversight without management interference; early detection of governance or strategic concerns.
  • Sustainability and Shareholder Engagement Committee
    Dedicated committee (Chair: Vicky A. Bailey) overseeing environmental, social, sustainability, climate-related risks and opportunities. Reviews shareholder engagement, political activities, and lobbying. 3 meetings in 2025.
    Formalizes ESG oversight; direct linkage between board and shareholder feedback on climate/social issues.
  • Shareholder Engagement Program
    Company engaged with shareholders representing >60% of outstanding shares in 2025. Topics: OxyChem divestiture, cash flow allocation, STRATOS/DAC progress, board composition, compensation design, climate/sustainability, geopolitical risks.
    Regular two-way dialogue; board receives shareholder views; responsiveness demonstrated (e.g., 2025 ACI metric change from CROCE to FCF based on feedback).
  • Proxy Access for Shareholders
    Amended By-laws permit groups of 3%+ holders (continuously for 3+ years) to nominate up to 20% of board (minimum 2 directors) for inclusion in proxy materials.
    Shareholder nomination rights; reduces barriers to board refreshment via shareholder activism.
  • Director Nominations and Governance Committee
    Corporate Governance and Nominating Committee (composed entirely of independent directors) evaluates candidates on character, judgment, skill, experience, independence, conflicts, tenure, meeting attendance, well-roundedness. Annual review of incumbent directors.
    Rigorous, systematic director selection; reduces cronyism; promotes merit-based board composition.
  • Related-Party Transaction Policy
    Governance Committee reviews and approves transactions >$120,000 with directors, officers or their affiliates. Annual questionnaires and accounting review identify conflicts. Approved OxyChem sale to Berkshire Hathaway (Berkshire >5% beneficial owner); approved related-party employment of Corey N. Hardegree (son-in-law of SVP Jeff F. Simmons; total comp <$375,000; no conflict in his hiring or evaluation).
    Formal oversight; transparency of related-party dealings; independence of evaluation.
  • Conflict of Interest Policy & Code of Business Conduct
    All directors and executives obligated to avoid conflicts; must report to compliance officer. Policy addresses divergence from company interests or interference with duties.
    Baseline governance; reduces insider-trading and self-dealing risks.

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of Occidental Petroleum Corporation. Coverage and confidence vary by data point, and figures can lag real-world changes. Read the full Methodology for sourcing, scoring, and correction details — or open Occidental Petroleum Corporation in the app for interactive charts and portfolio building.

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