Occidental Petroleum (OXY) risk factors, FY2024 10-K

Other

1. 01Occidental’s financial results correlate closely to the prices it obtains for its products, particularly oil and, to a lesser extent, NGL, natural gas and chemical products
2. 02Occidental’s indebtedness may make it more vulnerable to economic downturns and adverse developments in its businesses. Downgrades in Occidental’s credit ratings or future increases in interest rates may negatively impact Occidental’s cost of capital and ability to access capital markets
3. 03Disruptions in the political, regulatory, economic, and social environments of the countries in which Occidental operates could adversely affect its reputation, financial condition, results of operations and cash flows
4. 04Government actions and political instability may adversely affect Occidental’s businesses and results of operations
5. 05Basin, listing of such species may impose significant operational requirements and costs and increase the potential for litigation and enforcement actions
6. 06Claims, litigation, government investigations and other proceedings may adversely affect Occidental’s businesses, consolidated financial position, results of operations and cash flows
7. 07Compliance costs and liabilities associated with health, safety and environmental laws and regulations could have a material adverse effect on Occidental’s or its subsidiaries’ businesses, financial condition and results of operations
8. 08Occidental may experience delays, cost overruns, losses or other unrealized expectations in development efforts and exploration activities
9. 09Occidental’s oil and gas business operates in highly competitive environments, which affect, among other things, its ability to source production and replace reserves
10. 10Occidental’s oil and gas reserve additions may not continue at the same rate and a failure to replace reserves may negatively affect Occidental’s businesses
11. 11Occidental’s oil and gas reserves are estimates based on professional judgments and may be subject to revision
12. 12Occidental has previously recorded impairments of its assets and will continue to assess further impairments across its asset portfolio in the future
13. 13Future costs associated with reducing emissions and carbon intensity, as well as impacts resulting from other risk factors described herein, could lead to impairments in the future, if such costs significantly increase Occidental’s breakeven economics
14. 14Occidental is exposed to cyber-related risks
15. 15to 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 liability
16. 16Climate change and further regulation of GHG and other air emissions may adversely affect Occidental’s businesses and results of operations
17. 17Occidental’s future results could be adversely affected if it is unable to execute new business strategies effectively
18. 18Occidental’s aspirations, goals and initiatives related to carbon management and overall sustainability expose it to numerous risks
19. 19Occidental uses water and sand and is required to dispose of produced water. Occidental’s inability to source water and sand, or dispose of produced water, could adversely affect its operations
20. 20In 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. The legal requirements related to the injection of produced water into a non-producing geologic formation are subject to change
21. 21Occidental uses CO2 for its EOR operations. Occidental’s production from these operations may decline if Occidental is not able to obtain sufficient amounts of CO2
22. 22Occidental’s operations and financial results could be significantly negatively impacted by its offshore operations
23. 23Occidental’s businesses may experience catastrophic events