Occidental Petroleum (OXY) Q3 2026 earnings summary

Executive summary

• Q3 production averaged 1,427 Mboe/d, above the guidance midpoint; adjusted diluted EPS was $1.91 and free cash flow before working capital was $2.8B.

• Reached the $10B principal-debt milestone after $10.4B of year-to-date repayments; established a new $6B debt target.

• Targeting a $4.0B annual sustainable cash flow increase by 2030 versus 2025, equivalent to 95% growth.

Financial highlights

• Reported diluted EPS was $1.61 versus adjusted diluted EPS of $1.91; the difference mainly reflected derivative losses.

• Continuing-operations cash flow before working capital was $4.1B; free cash flow before working capital was $2.8B on $1.3B of capital expenditures.

• Year-to-date free cash flow was $7.5B, the highest since 2022; unrestricted cash was $3.9B at September 30.

• Q3 net sales were $6.567B versus $5.519B year over year; net income was $1.821B versus $842M.

• Nine-month operating cash flow from continuing operations was $10.606B; total operating cash flow was $9.224B after discontinued-operations outflows.

Outlook and guidance

• Q4 production guidance is 1,430–1,470 Mboe/d; net capital expenditures are expected to be ~$1.3B.

• 2027 capital spending is expected at ~$5.9B, with relatively flat production and flat-to-slightly-higher oil output.

• Sustainable cash flow improvement is expected to reach $700M–$800M in 2027 versus 2026, or ~$2B cumulatively by year-end 2027.

• 2026 plan targets $500M of cost savings versus 2025 and 7% U.S. unconventional well-cost savings.

• STRATOS full plant startup is expected around year-end, with transition to operations in 2027 and project EBITDA of $90M–$130M in 2028.