Occidental Petroleum (OXY) Q2 2026 earnings summary

Executive summary

• Achieved strong operational and financial performance in Q2 2026, with net income of $2.8 billion, reported EPS of $2.75, and adjusted EPS of $2.40, surpassing production and financial guidance.

• Free cash flow before working capital reached $3.0 billion, the highest since Q3 2022, with capital expenditures of $1.6 billion.

• Principal debt reduced to $11.8 billion, with $8.6 billion repaid year-to-date, progressing toward the $10 billion target and enabling an 8% dividend increase to $0.28 per share.

• Advanced a sustainable cash flow growth plan, targeting over $4 billion in annual improvement by 2030 at $65 WTI.

• Focused on cost efficiencies, capital discipline, and organic resource development to drive value creation.

Financial highlights

• Q2 2026 net income was $2.8 billion, with diluted EPS of $2.75 and adjusted EPS of $2.40; net sales reached $8.1 billion.

• Free cash flow before working capital was $3.0 billion; operating cash flow from continuing operations was $5.1 billion.

• Global production averaged 1,433 Mboed, exceeding guidance, with Permian and Gulf of America units outperforming.

• Midstream and marketing segment set a new record with $1.3 billion in pre-tax adjusted income.

• Ended the quarter with $4.2 billion in unrestricted cash.

Outlook and guidance

• Raised full-year production guidance to 1,423–1,453 Mboed, with Permian production expected at 801–817 Mboed.

• Full-year capital guidance maintained at $5.5–$5.9 billion; 2027 capital spending expected to start at $5.9 billion.

• Domestic lease operating expense guidance for the year held at $8.10/BOE; DD&A at $13.30/BOE.

• Midstream income expected to decline in Q3 as gas spreads narrow, but full-year guidance increased by $300 million.

• Adjusted effective tax rate for FY26: 24–26%.