$OXY earnings report

This filing is an earnings-considerations release rather than a completed earnings report. Occidental stated that total company production for the third quarter of 2026 is within its guidance range, but did not disclose total production, revenue, earnings, or a full financial statement. The company said the information is preliminary and is not an estimate of third-quarter earnings.

Operations were affected by temporary curtailments at certain Gulf of America facilities during September. Occidental attributed the downtime to a third-party gas pipeline constraint and maintenance activities. Gulf of America net sales volumes were reported at 110 Mboed for the three months ended September 30, 2026, and production has been partially restored. The remaining affected production is expected to return when the third-party pipeline constraint is resolved.

Commodity realizations show worldwide oil at $85.91/Bbl, compared with $85.79/Bbl WTI and $91.62/Bbl Brent. Worldwide NGL realizations were $24.63/Bbl, while worldwide natural gas realizations were $1.69/Mcf. Domestic natural gas realized $1.61/Mcf against a $2.97/Mcf NYMEX gas index price. The company also reported domestic lease operating cost of $8.54/boe and an oil mix of 48.8% of total company production.

Cash flow faces a disclosed hedging-related headwind: crude oil collar settlements negatively impacted operating cash flow before working capital by $94 million. Average diluted shares outstanding were 1,012.8 million shares. No capital-return activity, balance-sheet balances, debt, dividend, repurchase data, or formal forward financial guidance was provided in the filing.

The primary near-term operating item is restoration of the remaining Gulf of America production affected by the third-party pipeline constraint. Investors also need the subsequent finalized earnings release to assess the downtime's effects on production, revenue, margins, earnings, operating cash flow, and capital allocation.

Occidental reported second-quarter net income attributable to common stockholders of $2.8 billion, or $2.75 per diluted share, alongside adjusted income attributable to common stockholders of $2.4 billion and adjusted EPS from continuing operations of $2.40. Operating cash flow from continuing operations was $5.1 billion, while operating cash flow before working capital from continuing operations was $4.6 billion. Free cash flow before working capital from continuing operations was $3.0 billion, which the company described as its highest level since the third quarter of 2022.

Oil and gas pre-tax income was $2.8 billion, compared with $1.0 billion in the first quarter of 2026. The company attributed the increase primarily to higher realized crude oil prices, partly offset by lower domestic natural gas prices. Average worldwide realized crude oil prices increased 38% from the previous quarter to $96.78 per barrel, and average worldwide realized natural gas liquids prices increased 30% to $24.64 per barrel. Average domestic realized gas prices were negative $1.48 per Mcf, a clear counterweight to the improved oil-price environment.

Production was 1,433 Mboed globally and exceeded the high end of guidance, with the Permian and Gulf of America business units outperforming. Midstream and marketing generated $1.3 billion of pre-tax income after a pre-tax loss of $87 million in the previous quarter. The company said this improvement reflected higher crude margins related to the timing of crude sales and higher gas margins from transportation capacity optimizations. WES equity method investment income was $149 million.

Capital allocation centered on debt reduction and a higher dividend. Occidental reduced principal debt by $1.9 billion to $11.8 billion as it advances toward a $10.0 billion milestone. It also increased the quarterly dividend by an additional 8% this year to $0.28 per share. Capital expenditures were $1.6 billion, supporting the reported free-cash-flow result.

The release did not provide numerical forward financial or operating guidance, although it stated that production exceeded the high end of guidance and that midstream and marketing pre-tax adjusted income exceeded the high end of guidance. Management expects significant free cash flow growth by 2030. The immediate reported variables to monitor are crude and domestic natural-gas realizations, production execution in the Permian and Gulf of America, midstream and marketing margins, and progress toward the debt target.