Occidental Petroleum (OXY) Q1 2026 earnings summary

Executive summary

• Net income attributable to common stockholders reached $3.2 billion in Q1 2026, with reported EPS of $3.13 and adjusted EPS of $1.06, driven by the $9.5 billion OxyChem sale, strong operational performance, and portfolio resilience.

• Production averaged 1,426 Mboed, surpassing guidance, with significant contributions from the Permian, Rockies, and Gulf of America.

• Accelerated debt reduction, repaying $7.1 billion through May 5 and reducing principal debt to $13.3 billion, progressing toward a $10 billion target.

• Portfolio transformation over the past decade doubled production and reserves since 2015, emphasizing U.S. assets and operational excellence.

• Continued focus on cost efficiency, capital discipline, and shareholder returns.

Financial highlights

• Adjusted earnings of $1.06 per diluted share; reported earnings of $3.13 per diluted share, with the difference mainly from the OxyChem sale.

• Free cash flow before working capital was $1.7 billion; operating cash flow before working capital reached $3.2 billion.

• Cash and cash equivalents at quarter-end were $3.8 billion.

• Capital expenditures totaled $1.6 billion, primarily in oil and gas.

• Production exceeded guidance by 33,000 BOE per day, averaging 1.43 million BOE per day.

Outlook and guidance

• Full-year 2026 production guidance midpoint adjusted to 1.44 million BOE per day due to Middle East disruptions and EOR optimization.

• FY26 midstream pre-tax income guidance: $1.0–$1.2 billion; raising full-year midstream guidance midpoint to $1.1 billion.

• Capital guidance for 2026 remains $5.5–$5.9 billion, with activity weighted to the first half.

• Plan targets over $1.2 billion free cash flow improvement in 2026, driven by cost savings and capital allocation.

• Strategic priorities include maintaining production, growing dividends, and prioritizing deleveraging until principal debt is ~$10 billion.