TipRanks
Occidental Petroleum (MX:OXY1)
:OXY1
Mexico Market
EarningsQ2 2026 Earnings Report

Occidental Petroleum (OXY1) Q2 2026 Earnings Report

0 Followers

MX:OXY1 Q2 2026 EPS Results

Actual EPS$42.56
Consensus EPS$32.38
Beat/MissBeat by +$10.18
One Year Ago EPS$6.92

MX:OXY1 Q2 2026 Revenue Results

Actual Revenue$125.05B
Expected Revenue$125.45B
Beat/MissMissed by -$397.29M
YoY Revenue Growth+11.64%

Earnings Announcement Details

QuarterQ2 2026
Date08/05/2026
TimeAfter Close
Conference CallWednesday, August 5, 2026
MX:OXY1 Upcoming Earnings
Occidental Petroleum's next earnings date is estimated for November 10, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

MX:OXY1 Q2 2026 Earnings Call
0:00 / 0:00

Q2 2026 Earnings Slide Deck

Q2 2026 Earnings Call Summary

Q2 2026
Earnings Call Date:Aug 05, 2026|
% Change Since:
|
Earnings Call Sentiment|Positive
The call presented a predominantly positive operational and financial picture: strong Q2 free cash flow ($3.0B), meaningful debt reduction, an 8% dividend increase, production outperformance, and a detailed plan to achieve ~$4.0B of sustainable annual cash flow by 2030. Near-term headwinds include Middle East disruptions, Q3 midstream normalization as gas spreads narrow, temporary maintenance/seasonal impacts in the Gulf of America and Rockies, and Stratos commissioning timing risks. Management emphasized disciplined capital allocation (debt paydown prioritized over buybacks) and substantial structural cost and decline‑rate improvements, with ~85% of planned cash flow gains expected to be resilient to lower prices. Overall, highlights materially outweigh the lowlights, with lowlights framed as manageable or timing-related risks rather than structural declines.
Company Guidance
Occidental’s near‑term guidance calls for third‑quarter production of 1.40–1.44 million BOE/d (Q2 was 1.43 MM BOE/d, +23k vs midpoint) and a raised full‑year production outlook, with domestic LOE guided at $8.75/BOE for Q3 and $8.10/BOE for the full year; midstream & marketing Q3 income is expected to decline as the Waha–Gulf Coast spread narrows (largely offset by stronger upstream gas realizations), but full‑year midstream guidance was increased by $300 million after a Q2 segment result of ~ $960 million. CapEx remains $5.5–$5.9 billion for 2026 (2027 starting point $5.9B; sustaining CapEx ~ $5.0–$5.1B in 2027) with a 2030 sustaining‑CapEx target of $4.5B; Q2 free cash flow before working capital was ~ $3.0 billion, unrestricted cash ~$4.2 billion, and the company expects to exceed its >$1.2B 2026 cash‑flow improvement target and to add >$4.0 billion of annual sustainable cash flow by 2030 (≈95% growth vs 2025), ~85% of which is expected at lower prices. Balance‑sheet milestones include reducing principal debt to $11.8B (current) toward a $10B target, net principal debt of ~$7.6B, limited near‑term maturities ($414M due through 2029), and material interest savings (current go‑forward interest ~ $760M, roughly $630M lower than 2025; expected ~$650M once principal is $10B, implying ~$740M total interest savings vs 2025, with ~$400M recognized in 2026 and ~$340M in 2027); the preferred redemption (~$700M) in Aug‑2029 is also a key cash‑flow consideration.
Strong Quarterly Free Cash Flow
Generated approximately $3.0 billion of free cash flow in Q2 — the highest quarterly free cash flow since Q3 2022; company expects to deliver more than the targeted $1.2 billion of free cash flow improvement for 2026 relative to 2025.
Debt Reduction and Interest Savings
Reduced principal debt by $1.5 billion to $11.8 billion (lowest since Q2 2019); net principal debt of $7.6 billion reflecting ~$4.2 billion cash on hand; lowered go‑forward annualized interest by approximately $630 million versus 2025 (go‑forward interest run rate ~ $760 million).
Dividend Increase
Board approved an 8% increase to the quarterly dividend, raising it to $0.28 per share, supported by stronger balance sheet and cash generation.
Production Outperformance
Total production averaged 1.43 million BOE/d in Q2, exceeding the midpoint of guidance by 23,000 BOE/d (about a 1.6% beat) driven by Permian new well and base performance and higher Gulf of America uptime.
Midstream & Marketing Record Quarter
Midstream and marketing segment delivered adjusted pretax income of ~ $960 million in Q2 — a record quarter and reported as more than double the midpoint of guidance (>100% above midpoint) due to gas marketing optimization and stronger crude marketing margins.
Cost and Operational Efficiency Gains
Domestic lease operating expense of $7.80 per BOE in Q2, a 6% improvement versus guidance; company reports >$2 billion in cost savings since 2023 and expects continued efficiency gains (targeting additional well cost reductions and a 12% well cost improvement by 2030, with 7% achieved this year).
Long-Term Sustainable Cash Flow Plan
Announced pathway to add over $4.0 billion of annual sustainable cash flow by 2030 (approximately 95% annualized growth vs 2025); company states ~85% of the improvements should be achieved even at lower oil price scenarios, driven by lower sustaining capital, cost efficiencies and balance sheet improvements.
Resource Base and Decline Rate Improvement
Resources totaled 16.5 billion BOE, providing >30-year low-cost development runway; plan to reduce base decline rate from ~25% to ~20% by 2030 (a ~5 percentage point improvement) driven by advanced recovery, waterflood and EOR projects.
Capital and Guidance Discipline
Maintained full-year 2026 capital guidance of $5.5–$5.9 billion; raised full-year midstream & marketing guidance by $300 million; set 2027 starting CapEx expectation at $5.9 billion with sustaining CapEx reduction pathway to $4.5 billion by 2030.

MX:OXY1 Earnings History

Report Date
Fiscal Quarter
Forecast / EPS
Last Year's EPS
EPS YoY Change
Press Release
Nov 10, 2026
2026 (Q3)
21.58 / -
11.349―
2026 (Q2)
32.38 / 42.56
6.916515.38% (+35.64)
2026 (Q1)
10.66 / 18.80
15.42821.84% (+3.37)
2025 (Q4)
2.93 / 5.50
14.186-61.25% (-8.69)
2025 (Q3)
9.08 / 11.35
17.733-36.00% (-6.38)
2025 (Q2)
5.27 / 6.92
18.265-62.14% (-11.35)
2025 (Q1)
13.88 / 15.43
11.17238.10% (+4.26)
2024 (Q4)
12.01 / 14.19
13.1228.11% (+1.06)
2024 (Q3)
13.16 / 17.73
20.925-15.25% (-3.19)
2024 (Q2)
13.78 / 18.27
12.05851.47% (+6.21)
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