2025 was a transformational year for Oxy. Through disciplined execution, operational excellence, strategically reshaping our portfolio and strengthening our balance sheet we have worked to build a stronger, more resilient company that is positioned to perform across evolving industry dynamics and deliver increased value to shareholders.

Operational performance was a clear differentiator throughout the year. We delivered record annual production of 1.43 million barrels of oil equivalent (BOE) per day, exceeding the high end of our guidance while spending $300 million less in oil and gas capital and reducing operating expenses by $275 million, achieving our lowest lease operating expense per BOE since 2021. Importantly, our employees achieved these outcomes while establishing a new safety performance record, a testament to our culture of delivering results while striving to work safely and responsibly.

Underpinned by high-quality resources, we believe our portfolio has never been stronger. Through a series of strategic asset acquisitions and divestitures that we began in 2015, which culminated with the sale of OxyChem earlier this year, we have built a differentiated asset base anchored by world-class U.S. unconventional resources, complemented by high-margin, lower decline domestic conventional, Gulf of America and international assets, and enhanced by decades of leadership in advanced recovery. This combination helps provide both flexibility and resilience across commodity cycles and positions Oxy to generate sustainable free cash flow across a range of pricing environments. Our portfolio offers more than 30 years of low-cost development runway with a total resource base of approximately 16.5 billion BOE compared to 8.1 billion BOE in 2015. Eighty three percent of our current production and almost 88% of our total resource base is in the United States-significantly lowering geopolitical risk. Each year we have continued to extend and improve organically. We strive to add at least as many reserves as we produce. At the end of 2025, Oxy's worldwide proved reserves totaled 4.6 billion BOE. Proved reserve additions included extensions and discoveries totaling 340 million BOE, mainly in the Permian Basin, and additions from infill development projects of 115 million BOE, primarily in the Permian and DJ Basins. This resulted in a 107% organic reserves replacement ratio and a 98% all-in reserves replacement ratio.¹

We continue to advance technologies that extend resource life and improve capital efficiency. In the Permian Basin, we are deepening reservoir characterization and advancing unconventional enhanced oil recovery. In the Gulf of America and across our international portfolio, advanced seismic and data analytics are furthering reliability and unlocking new development opportunities. In Algeria, we completed the country's largest seismic acquisition, providing a rich dataset to support future development and recovery optimization. STRATOS, our industrial-scale Direct Air Capture facility, is expected to be online this year and the technology will play a strategic role in securing long-term, reliable CO2 supply to support enhanced oil recovery and future carbon management opportunities. Together, these efforts are expected to lower decline rates, reduce sustaining capital, and enhance long-term value.

Production and operational reliability were equally strong across our global footprint. In 2025, our teams delivered industry-leading well performance across all of our U.S. onshore basins. We achieved record production at Al Hosn, record uptimes in Algeria, the Gulf of America, Al Hosn, and U.S. onshore EOR operations, and strong base production delivery that contributed meaningfully to our full-year production outperformance. Our Midstream business also delivered exceptional results, exceeding original guidance driven by effective gas marketing optimization in the Permian and higher sulfur prices at Al Hosn.

These operational outcomes translated directly into financial strength. We generated $4.3 billion in free cash flow before working capital in 2025¹, despite oil prices that were on average approximately 14 percent lower than in 2024.

Strengthening the balance sheet remained a top priority. During 2025, we repaid $4 billion of debt, and with the completion of the OxyChem transaction earlier this year, our principal debt now stands at approximately $13.8 billion, about $4.2 billion lower than prior to the CrownRock acquisition. Over the past 20 months, we have retired over $15 billion of debt, materially improving our leverage profile and financial flexibility.

Looking ahead, our priorities are clear and consistent-building on the progress we made last year. First, we plan to maintain our production base through safe, reliable operations. Second, delivering a sustainable and growing dividend remains central to our strategy. Third, we will continue to strengthen our financial position and deliver value to our shareholders.

To deliver these priorities, we can now focus on what our teams do best: applying innovative technologies and processes to develop our robust portfolio. For years, this approach has driven meaningful gains in capital efficiency, improved recovery, lowered operating costs and decreased our base decline. Much of this progress has come from advances in subsurface, drilling and completions combined with greater use of AI in our models and operations. Few industries stand to benefit more from AI than oil and gas, given the tremendous volume of data associated with the complexity of our work. This creates opportunities that we are advancing through our AI Center of Excellence and an Operations "SWAT" Team, addressing longer-term studies and near-term operational application, respectively. We look forward to the new discoveries and achievements our teams will accomplish and convert to increase shareholder value in the coming years.

I am deeply grateful to our teams for their relentless drive to improve performance while also delivering record safety results. I also thank our Board of Directors for their guidance and our shareholders for their continued support.

Together, we are well-positioned for the years ahead.

Vicki Hollub
President and
Chief Executive Officer