Occidental Petroleum (OXY) AI Stock Analysis

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.