Occidental Petroleum earnings analysis: questions answered and next catalysts

Occidental (Oxy) has secured 2 million metric tons of CO₂ annually via long-term deals with two developers. The CO₂, sourced from natural gas plants in the Delaware Basin, will support enhanced oil recovery in the Permian Basin. Initial deliveries are expected in 2029, with potential expansion to 4 million tons. The projects, subject to final investment decisions, aim to diversify Oxy's CO₂ portfolio and extend field productivity.

Occidental reduced its debt to $10 billion, reporting $4.1 billion in Q3 cash flow. The company aims for over $4 billion in additional annual cash flow by 2030, which could boost shareholder returns. However, lower crude prices and midstream margins highlight its exposure to commodity price fluctuations.

Occidental Petroleum (OXY) announced long-term CO2 offtake agreements to source up to 2M metric tons/year for enhanced oil recovery in the Permian Basin. The CO2 will come from natural gas processing facilities in the Delaware Basin, according to the company.

Occidental reported Q3 2026 earnings with $1.6B net income, $1.61 EPS, and $1.91 adjusted EPS. The company reduced principal debt to $10.0B, generated $4.1B in operating cash flow, and exceeded production guidance. Management highlighted debt reduction and plans to increase cash flow by 2030.

Occidental Petroleum (OXY) stock fell 0.3% after-hours despite beating Q3 2026 earnings estimates ($1.91 vs. $1.45). Pre-tax income declined due to lower crude prices and operational issues. Production was 1.427 million barrels per day, above guidance but below Q2. The company announced CO2 supply agreements and reaffirmed its 2030 cash flow target. The broader market was flat, and oil prices faced headwinds.

Occidental Petroleum (OXY) reported Q3 2026 revenue of $6.77B, missing estimates by 0.7% but up 20.6% YoY. Adjusted EPS of $1.91 beat estimates by 29.8%. Operating margin rose to 38.6% from 19.7% YoY. Shares rose 1% post-results.