10-QPeriod: Q1 FY2026

OCCIDENTAL PETROLEUM CORP /DE/ Quarterly Report for Q1 Ended Mar 31, 2026

Filed May 5, 2026For Securities:OXYOXY-WT

Summary

Occidental Petroleum Corporation reported a significant increase in net income attributable to common stockholders for the first quarter of 2026, reaching $3.175 billion, a substantial rise from $766 million in the prior year period. This surge was largely driven by a $3.1 billion after-tax gain from the sale of its OxyChem business, which closed in January 2026. Despite this one-time gain, the core operations also showed resilience, with income from continuing operations totaling $236 million, down from $830 million in Q1 2025, influenced by lower commodity prices and derivative losses. The company made substantial progress on its deleveraging strategy, utilizing proceeds from the OxyChem divestiture to repay approximately $6.7 billion in debt during the quarter, significantly reducing its long-term debt obligations. This strategic move is expected to strengthen the balance sheet and improve financial flexibility. While cash flow from operations declined year-over-year due to working capital changes related to commodity price increases, the company maintains a strong liquidity position with substantial cash on hand and available credit facilities, positioning it to meet near-term obligations.

Financial Highlights

46 data points
Beta

Revenue

$5.23B

Net Income

$3.36B

64.2% Net Margin

EPS (Diluted)

$3.13

Total Assets

$80.46B

Cash & Equivalents

$3.81B

Free Cash Flow

-$273.00M

Financial Statements
Beta
Revenue$5.23B
SG&A Expenses$245.00M
Net Income$3.36B
EPS (Basic)$3.19
EPS (Diluted)$3.13
Shares Outstanding (Basic)989.80M
Shares Outstanding (Diluted)1.01B

Key Highlights

  • 1Net income attributable to common stockholders surged to $3.175 billion, driven by a $3.1 billion gain from the OxyChem sale.
  • 2Substantial debt reduction occurred, with approximately $6.7 billion repaid using proceeds from the OxyChem divestiture.
  • 3Income from continuing operations was $236 million, impacted by lower commodity prices and derivative losses.
  • 4Cash and cash equivalents stood at $3.8 billion, providing strong liquidity.
  • 5Capital expenditures were $1.6 billion, primarily focused on the oil and gas segment.
  • 6The company generated $1.28 billion in net cash from operating activities.
  • 7Derivative instruments, specifically crude oil collars, resulted in a loss of $339 million in the period.

Frequently Asked Questions

The primary driver of the significant increase in net income attributable to common stockholders was the gain of $3.1 billion (net of taxes) from the sale of Occidental Chemical Corporation (OxyChem), which was completed on January 2, 2026.

Occidental Petroleum utilized a substantial portion of the proceeds from the OxyChem sale to repay approximately $6.7 billion of its long-term debt during the first quarter of 2026, significantly reducing its overall debt burden and strengthening its balance sheet.

The company noted that oil prices have been volatile due to geopolitical risks and macroeconomic conditions. The ongoing conflict with Iran has significantly disrupted global energy markets. While Occidental's average realized oil prices remained strong, lower commodity prices and derivative losses impacted its income from continuing operations, highlighting the sensitivity of its financial results to commodity price fluctuations.

Occidental's strategic priorities include delivering a sustainable and growing dividend. For excess cash flow, the company prioritizes deleveraging until principal debt is approximately $10.0 billion. After that milestone, available cash will be allocated to further net debt reduction and/or opportunistic share repurchases.