Occidental Petroleum (OXY) Q2 2026 earnings summary

Executive summary

• Net income attributable to common stockholders was $2.8 billion for Q2 2026, with reported EPS of $2.75 and adjusted EPS of $2.40, reflecting strong operational and financial performance year-over-year, driven by higher realized crude oil prices and a $3.1 billion gain from the OxyChem divestiture.

• 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 $10.0 billion target and enabling an 8% dividend increase.

• The OxyChem Transaction closed in January 2026 for $9.5 billion, with proceeds used to repay debt and strengthen the balance sheet.

• Focused on execution, cost efficiency, and sustainable cash flow growth, targeting over $4 billion in annual sustainable cash flow by 2030.

Financial highlights

• Q2 2026 net sales were $8.1 billion, up from $5.3 billion in Q2 2025; first half net sales reached $13.3 billion.

• Adjusted earnings of $2.40 per diluted share and reported earnings of $2.75 per diluted share.

• Operating cash flow from continuing operations was $6.5 billion for the first half, up from $4.8 billion in 2025.

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

• Midstream and marketing pre-tax adjusted income was $1.3 billion, a significant turnaround from a $87 million loss in Q1 2026.

Outlook and guidance

• FY26 production guidance: 1,423–1,453 Mboed; Permian production: 801–817 Mboed.

• FY26 midstream pre-tax income guidance: $1.3–$1.5 billion.

• FY26 domestic operating cost: $8.10/boe; DD&A: $13.30/boe.

• Over $1.2 billion free cash flow improvement expected in 2026, excluding higher oil price impacts.

• Management expects continued value creation through advanced recovery, cost efficiencies, and a strong balance sheet, targeting significant free cash flow growth by 2030.