Occidental Petroleum(DE:OPC)
€52.76+1.30 (+2.53%)
DE:OPC
Occidental Petroleum earnings date
€52.76
At close:+1.30 (+2.53%)
Occidental Petroleum (OPC) Q3 2026 Earnings Report
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DE:OPC Q3 2026 EPS Results
- Actual EPS
- EUR 1.72
- Consensus EPS
- EUR 1.31
- Beat/Miss
- Beat by +EUR 0.41
- One Year Ago EPS
- EUR 0.58
DE:OPC Q3 2026 Revenue Results
- Actual Revenue
- EUR 6.38B
- Expected Revenue
- EUR 6.15B
- Beat/Miss
- Beat by +EUR 232.76M
- YoY Revenue Growth
- +5.94%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/09/2026
- Time
- After Close
- Conference Call
- Monday, November 9, 2026
DE:OPC Upcoming Earnings
Occidental Petroleum's next earnings date is estimated for February 24, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
DE:OPC Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive, with management highlighting production outperformance, approximately $2.8 billion of free cash flow, accelerated debt reduction, significant resource and EOR opportunities, cost efficiencies, and progress toward more than $4 billion of annual sustainable cash flow improvement by 2030. The main challenges were temporary Gulf of America outages and pipeline constraints, higher fourth-quarter lease operating expense, expected midstream and sulfur pricing pressure, STRATOS cost increases, and substantial discontinued-operations tax outflows. Overall, the highlights significantly outweighed the lowlights.
Company Guidance
For the fourth quarter, Occidental expects total company production to range between 1.43 million and 1.47 million BOE per day, adjusted pretax income for full year 2026 of $2 billion, and total company capital spending of approximately $1.3 billion, keeping full year 2026 capital spending within its original guidance range; excluding temporary downtime impact in the Gulf of America, full year production guidance is slightly above the guidance provided last quarter. For 2027, starting capital spending remains approximately $5.9 billion, with relatively flat production compared to 2026, oil production flat to slight increase, Permian production growing modestly, Rockies production flat on a BOE basis, and potential lower Gulf of America production due to the timing of injectors; sustainable cash flow improvement is expected to be approximately $700 million to $800 million in 2027 relative to 2026 and approximately $2 billion by year-end 2027, supporting more than $4 billion of annual sustainable cash flow improvement by 2030, a reduction in total base decline from approximately 25% to 20%, and sustaining capital of approximately $4.5 billion by 2030. At $6 billion principal debt, go-forward interest expense is expected to be approximately $400 million or approximately $1 billion lower than 2025, while STRATOS project EBITDA is expected to be $90 million to $130 million in 2028.
- Strong Third-Quarter Earnings and Free Cash FlowOccidental generated adjusted earnings of $1.91 per diluted share, reported earnings of $1.61 per diluted share, and approximately $2.8 billion of free cash flow. Continued operational execution and cost discipline, combined with higher commodity prices, supported the results.
- Production Exceeded GuidanceTotal production averaged 1.43 million BOE per day, exceeding the midpoint of guidance by 7,000 BOE per day. Strong base and new-well performance across U.S. onshore assets more than offset lower-than-expected production in the Gulf of America and international operations.
- U.S. Onshore and New Mexico OutperformanceU.S. onshore operations exceeded the midpoint of guidance by 20,000 BOE per day. New Mexico reached record gross operated production of 284,000 BOE per day, up approximately 23% since January.
- Powder River Basin Production GrowthOccidental brought a record 27 wells online in the Powder River Basin during the third quarter, more than in any prior year. Production grew more than 70% compared with the first quarter, reaching average net production of 23,000 BOE per day in the third quarter.
- Midstream and Marketing PerformanceMidstream and marketing delivered adjusted pretax income of $309 million, supported by stronger-than-expected sulfur pricing and Al Hosn sales volumes, as well as higher crude marketing margins from the timing of cargo sales and commodity price movements.
- Major Debt Reduction MilestoneOccidental achieved its $10 billion principal debt milestone during the quarter. It repaid $1.8 billion of principal debt in the quarter, bringing total year-to-date prepayments to $10.4 billion, and ended the quarter with $3.9 billion of unrestricted cash.
- New $6 Billion Principal Debt TargetThe company established a new principal debt milestone of $6 billion. At that level, debt-to-EBITDA is expected to be around 1 at $50 WTI, and the balance sheet would be the strongest Occidental has had in a decade when normalized for prices.
- Interest Expense Savings and Capital Return CapacityAt $6 billion of principal debt, the go-forward interest expense run rate is expected to be approximately $400 million, or approximately $1 billion lower than 2025 interest expense. Management said this would support durable dividend increases through commodity cycles and create capacity for broader return of capital.
- Sustainable Cash Flow Improvement PlanOccidental continues to target more than $4 billion of annual sustainable cash flow improvement by 2030 versus 2025, representing an approximate 95% increase. The stated drivers are oil and gas cost efficiencies, lower decline rates, and lower debt interest.
- Expected 2027 Sustainable Cash Flow ImprovementThe company expects approximately $700 million to $800 million of sustainable cash flow improvement in 2027 relative to 2026. Combined with improvement expected in 2026, this would bring annual sustainable cash flow improvement to approximately $2 billion by year-end 2027, nearly half of the 2030 objective.
- U.S. Unconventional Well PerformanceOccidental said its 2025 and 2026 wells delivered top-tier performance in every U.S. unconventional basin, with at least 10% above the industry average on a six-month cumulative oil-per-lateral-foot basis.
- Delaware Resource Recovery ImprovementsIn parts of the Delaware Basin, increasing the number of wells per bench has delivered the same individual-well performance and up to 2.5x the recovery per drill spacing unit. The company is applying either multi-bench co-development or phased bench development depending on the drill spacing unit.
- Conventional EOR and Horizontal Development ProgressOccidental has more than 50 years of conventional EOR experience and 2 billion BOE of resource. In 2026, it drilled eight conventional grassroots horizontal wells that were competitive within its portfolio, with high oil-cut production and lower decline. The company also drilled approximately 80 EOR sidetracks during the year and identified 500 additional sidetrack candidates.
- Additional Conventional and Unconventional ResourceNew conventional horizontal opportunities add more than 200 million BOE of development-ready resource, with further upside through appraisal and CO2 EOR. Occidental has also identified another 2 billion BOE of resources in unconventional EOR, with its first three commercial projects progressing toward injection by 2029 and more than 30 additional development-ready opportunities in the pipeline.
- EOR Production Additions and Recovery UpliftThe sidetrack program and conventional horizontals added 10,000 BOE per day as of the end of the third quarter. Pilots across multiple basins and formations demonstrated approximately 45% oil production uplift, while the company said its broader suite of technologies has the potential to increase estimated ultimate recovery by 70% to 140% per well.
- Gulf of America Waterflood OpportunityOccidental identified roughly 450 million BOE of waterflood resource in the Gulf of America at less than $40 breakeven, providing more than a decade of development runway. The King Dome flood began first injection in July.
- Artificial Intelligence and Operational EfficiencyApproximately 9,000, or 68%, of Occidental's artificial-lift wells are under AI surveillance with predictive intelligence. The company said this supports up to 7% annual production uplift and has reduced failure frequency by 22% compared with 2023. Approximately 50% of the AI-surveilled wells operate autonomously, including about 450,000 barrels per day in the Delaware Basin.
- Lower Decline Rates and Base Production OutperformanceU.S. onshore operations averaged more than 13,000 BOE per day above the original annual plan in each of the last three years. Advanced recovery technologies and operating improvements are supporting a reduction in Oxy's overall decline rate from approximately 25% to 20%.
- Cost Efficiency ProgressOccidental remains on track to deliver more than 7% improvement in new-well costs in 2026 and is tracking toward a 3% improvement in domestic lease operating expense and transportation, despite higher prices for CO2, diesel, and other commodity-price-sensitive categories.
- STRATOS Commissioning ProgressSTRATOS remains on track to begin full plant start-up around the end of the year and transition to operations in 2027. The facility has captured more than 2,000 metric tons of atmospheric CO2 while building pellet inventory, and project EBITDA remains expected to reach $90 million to $130 million in 2028.
- Lower-Cost CO2 Supply AgreementsOccidental signed offtake agreements with two project developers for 2 million metric tons per year of anthropogenic CO2 captured from third-party gas processing plants for Permian EOR. The volumes represent about 15% of the company's 2026 purchased CO2, and management said the agreements represent a meaningful reduction in cost and a capital-light sourcing approach.
- 2027 Capital Program and Production OutlookThe starting point for 2027 capital spending remains approximately $5.9 billion. At that level, the company expects relatively flat production compared with 2026, while oil production is expected to be flat to slightly higher. Permian production is expected to grow modestly on both a BOE and oil basis.
- Dividend Growth FrameworkOccidental announced a second 8% increase to its quarterly dividend for 2026. Management said a sustainable and growing dividend remains a foundational cash flow priority, with future increases expected to remain measured and disciplined and supported by the balance sheet and sustainable cash flow improvement.
- Barnett Well Cost and Performance ImprovementsIn the Barnett, Occidental has achieved drilling, completion, and equipment costs of less than $750 per foot, including hookup. Six-month oil production per foot has exceeded 12.5, and the company has more than 10 of the top 15 wells on that metric.
- Exploration Portfolio OptionalityOccidental has three modest-investment offshore exploration opportunities in its capital plans with partners. They provide exposure to mean net unrisked target volumes of greater than 2 billion BOE, with potential development in the post-2030 time frame.
- AI Applications Beyond Artificial LiftIn Oman, AI is optimizing injection of 600,000 barrels per day of steam across wells, locations, and patterns. In the Gulf of America, analysis of 155 large rotating equipment elements identified seawater lift pumps as responsible for 55% of unplanned failures, with the analysis completed in about an hour.
DE:OPC Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 24, 2027 | 2026 (Q4) | 1.80- | 0.28 | ― | ― |
| Nov 09, 2026 | 2026 (Q3) | 1.311.72 | 0.58 | 198.44% (+1.14) | |
| Aug 05, 2026 | 2026 (Q2) | 1.652.16 | 0.35 | 515.38% (+1.81) | |
| May 05, 2026 | 2026 (Q1) | 0.540.96 | 0.78 | 21.84% (+0.17) | |
| Feb 18, 2026 | 2025 (Q4) | 0.150.28 | 0.72 | -61.25% (-0.44) | |
| Nov 10, 2025 | 2025 (Q3) | 0.460.58 | 0.9 | -36.00% (-0.32) | |
| Aug 06, 2025 | 2025 (Q2) | 0.270.35 | 0.93 | -62.14% (-0.58) | |
| May 07, 2025 | 2025 (Q1) | 0.710.78 | 0.57 | 38.10% (+0.22) | |
| Feb 18, 2025 | 2024 (Q4) | 0.610.72 | 0.67 | 8.11% (+0.05) | |
| Nov 12, 2024 | 2024 (Q3) | 0.670.90 | 1.06 | -15.25% (-0.16) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
