OXY US S&P 500Russell 1000 Earnings call
Occidental Petroleum (OXY) · Q2 2026 results and valuation
Share price: $57.24 · 2026-11-11
Occidental Petroleum is an American company engaged in hydrocarbon exploration. It operates in the United States and the Middle East. Source: Wikipedia
Results Q2 2026 vs Q1 2026 · previous quarter · published 6 Aug 2026 and 6 May 2026
Net income down 10.8% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
1 · Numbers
−10.8%
Net income vs Q1 2026
Outlook given
Net income 3.00B vs 3.36B
Revenue +54.2%
Against the same quarter last year (Q2 2025) it is +540.2%; the dip on last quarter is small next to the change on last year.
Why Against the same quarter last year (+540.2%), net income rose primarily due to durable improvements including lower costs, lower sustaining capital, a stronger balance sheet, and higher commodity prices.
2 · How management spoke
Typical
Less upbeat than 51% of company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
Occidental Petroleum expects continued debt reduction to lower principal debt to a $10 billion milestone and reduce annual interest expense by roughly $740 million compared to last year.
Valuation
Is Occidental Petroleum undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At −16.2% growth a year (3-year revenue growth), the model's fair value is $4.81 a share — the stock trades 1090% above it. Today's price assumes 5.2% growth a year.
Current price
$57.24
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+5.2% for 10 yrs
Fair value / share
$4.81
Buy below
$3.61
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Read between the lines
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Guidance
OXY expects to deliver more than the targeted $1.2 billion of free cash flow improvement this year before the impact of higher oil prices.
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Key theme
Continued debt reduction is expected to lower principal debt to a $10 billion milestone and reduce annual interest expense by roughly $740 million compared to last year.
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Guidance
OXY is maintaining its full year capital guidance range of $5.5 billion to $5.9 billion for the current period.
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Guidance
OXY increased full year guidance by $300 million due to the segment's strong year-to-date performance.
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Guidance
The company reported reaching 7% this year toward a 12% target for 2030.
4 more
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Figure
Large continuous share repurchase programs are lower priority until the redemption of the preferred shares on August 29, making share repurchases opportunistic for the current period.
Source quote
“And share repurchases will be opportunistic, like you said, and you highlighted, any large continuous share repurchase program will be lower priority until the redemption of the preferred in August 29.”
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Figure
OXY reduced principal debt by $1.5 billion to $11.8 billion, reaching the lowest level since the second quarter of 2019.
Source quote
“Since our last call, we reduced principal debt by $1.5 billion to $11.8 billion, the lowest level since the second quarter of 2019.”
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Guidance
OXY raised its total company production guidance for the full year.
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Key theme
Lower decline and expected well cost efficiency improvements are expected to reduce sustaining capital.
Source quote
“It's a combination of lower decline that helps reduce our sustaining capital. And then we are also expecting more in terms of well cost efficiency improvement.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“While production growth is not required, our quality resources and execution efficiency provide opportunities for measured growth that could further improve cash flow.”
“Additionally, continued portfolio optimization, measured and efficiency-led growth and stronger oil and gas prices can all further increase our cash flow beyond the baseline that we are sharing today.”
“In oil and gas, this will be driven primarily by cost efficiencies and reduced sustaining capital resulting from a lower decline rate.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 8.06B | 5.23B | +54.2% | 5.26B | +53.4% |
| Operating income | 3.92B | 390.0M | +903.8% | 560.0M | +599.1% |
| Net income | 3.00B | 3.36B | −10.8% | 468.0M | +540.2% |
| EPS | 2.75 | 3.13 | −12.1% | 0.26 | +957.7% |
| P/E today 8.7 | 7.5 | 16.4 | −8.9 | 24.9 | −17.4 |
Topics
Most discussed now
- Occidental Petroleum's teams have delivered another strong quarter operationally and financially.
- To ensure Occidental Petroleum is centered on fundamentals to deliver this value, it is focused on four priorities: executing from a...
- Occidental Petroleum also remains on track with its 2026 cost savings targets, while operational efficiencies delivered another production…
- This year, Occidental Petroleum is making strong progress on each.
- Domestic lease operating expense was $7.80 per BOE, a 6% improvement versus guidance, supported by higher production across Occidental…
Faded since Q1 2026
- Fading Looking ahead in the near term, Occidental Petroleum sees a clear path to grow free cash flow and value at any...
- Fading Occidental Petroleum's focus starts with continuing to improve its advantaged resource base through sustained improvements in new well…
- Fading These dynamics underscore how quickly supply expectations and trade flows can change, and why reliability, resilience, and financial…
- Fading One thing Occidental Petroleum has been working on—and it mentioned it in its script—is free cash flow improvement near term.
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
Occidental Petroleum Corporation reported average realized prices of $85.91 per barrel for worldwide oil and $24.63 per barrel for worldwide NGL for the third quarter of 2026.
- Results of operations · SEC 8-K
Occidental reported net income of $2.8 billion and EPS of $2.75 for the second quarter of 2026, with oil and gas pre-tax income of $2.8 billion compared to $1.0 billion in the first quarter.
- Results of operations · SEC 8-K
Occidental Petroleum Corporation reported average diluted shares outstanding of 1,012.2 million for the second quarter of 2026, with crude oil collar settlements impacting operating cash flow by $156 million.
- Results of operations · SEC 8-K
Occidental reported a net income of $3.2 billion and an EPS of $3.13 for the first quarter of 2026, with oil and gas pre-tax income of $1.0 billion compared to $0.7 billion in the previous quarter.
- Director or officer change; Shareholder vote results; Regulation FD disclosure · SEC 8-K
Occidental announced that Richard Jackson will succeed Vicki Hollub as President and CEO effective June 1, 2026, following her retirement.
- Results of operations · SEC 8-K
Occidental Petroleum Corporation reported average realized prices of $69.91 per barrel for worldwide oil and 1,006.9 million average diluted shares outstanding for the first quarter of 2026.
- Material agreement; Change to shareholder rights; Other events · SEC 8-K
Occidental increased the maximum aggregate principal amount of Notes it will accept for purchase from $700,000,000 to $1,200,000,000.
- Regulation FD disclosure · SEC 8-K
Occidental commenced cash tender offers to purchase various senior notes and debentures with a maximum aggregate principal amount of $700.0 million.
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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this year
delivery of more than the targeted $1.2 billion of free cash flow improvement before the impact of higher oil prices
Source quote
“Taken together, we expect to deliver more than the targeted $1.2 billion of free cash flow improvement for this year before the impact of higher oil prices.”
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by 2030
add over $4 billion of annual sustainable cash flow
Source quote
“Looking ahead, we see a clear pathway to add over $4 billion of annual sustainable cash flow by 2030.”
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by 2030
further extend our savings
Source quote
“We are on track for this year's targets and expect to further extend our savings by 2030.”
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by 2030
support a decline rate reduction from approximately 25% to 20%
Source quote
“This base decline improvement is driven by our advanced recovery projects, which are expected to support a decline rate reduction from approximately 25% to 20% by 2030.”
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beginning next year
approximately $400 million of LCV capital will fully roll off
Source quote
“With Stratos moving from development to operations, approximately $400 million of LCV capital will fully roll off beginning next year.”