10-QPeriod: Q2 FY2026

OCCIDENTAL PETROLEUM CORP /DE/ Quarterly Report for Q2 Ended Jun 30, 2026

Filed August 5, 2026For Securities:OXYOXY-WT

Summary

Occidental Petroleum Corporation (OXY) reported a significant turnaround in its financial performance for the six months ended June 30, 2026, driven by strong operational execution and favorable commodity price environments. The company generated substantial net income of $6.36 billion, a dramatic increase from $1.41 billion in the prior year period. This improvement was largely fueled by a $3.12 billion gain from the sale of OxyChem, completed in January 2026, and significantly higher net sales across its oil and gas and midstream and marketing segments, which benefited from elevated crude oil prices. The company demonstrated robust cash flow generation, with net cash provided by operating activities increasing to $5.55 billion. A key strategic focus during the period was significant debt reduction, with the company repaying approximately $8.6 billion of debt using proceeds from the OxyChem sale and operating cash flow. This deleveraging effort has strengthened the balance sheet considerably, with long-term debt, net, decreasing from $20.62 billion at the end of 2025 to $13.54 billion by mid-2026. Occidental continues to execute on its strategic priorities, including delivering a sustainable and growing dividend, which was increased by 8% in August 2026. The company's operational performance, combined with disciplined capital allocation and a strong focus on debt reduction, positions it favorably amidst current market conditions.

Key Highlights

  • 1Significant increase in Net Income: Net income surged to $6.36 billion for the six months ended June 30, 2026, compared to $1.41 billion in the same period of 2025, boosted by a substantial gain from the OxyChem divestiture.
  • 2Strong Operating Cash Flow: Net cash provided by operating activities increased to $5.55 billion for the first six months of 2026, up from $5.11 billion in the prior year, indicating healthy core business performance.
  • 3Substantial Debt Reduction: The company repaid approximately $8.6 billion of debt in the first six months of 2026, significantly reducing its net long-term debt from $20.62 billion to $13.54 billion.
  • 4Increased Revenues Driven by Higher Commodity Prices: Net sales rose to $13.3 billion for the six months ended June 30, 2026, driven by higher average realized crude oil prices ($82.36/bbl vs. $67.58/bbl) and strong performance in the midstream and marketing segment.
  • 5Dividend Increase: Occidental announced an 8% increase in its quarterly dividend to $0.28 per share in August 2026, demonstrating commitment to returning capital to shareholders.
  • 6Strategic Divestiture Completed: The sale of OxyChem for $9.5 billion closed on January 2, 2026, generating a significant gain and allowing for strategic focus on core oil and gas and midstream assets.
  • 7Improved Effective Tax Rate: The effective tax rate for continuing operations decreased to 25% for the first six months of 2026, down from 33% in the prior year period, contributing to improved net income.

Frequently Asked Questions

The primary driver of the substantial increase in net income to $6.36 billion for the six months ended June 30, 2026, was the $3.12 billion gain realized from the sale of OxyChem, which closed on January 2, 2026. This divestiture allowed Occidental to focus on its core businesses and significantly improved its financial results.

Occidental Petroleum has actively managed its debt by repaying approximately $8.6 billion in the first six months of 2026, utilizing proceeds from the OxyChem sale and strong operating cash flows. This aggressive deleveraging has reduced its net long-term debt from $20.62 billion at the end of 2025 to $13.54 billion by June 30, 2026, strengthening its balance sheet.

The company notes that its financial results are significantly influenced by crude oil prices, which averaged $82.36 per barrel for WTI in the first six months of 2026, up from $67.58 in the prior year. While prices benefited from geopolitical premiums, they are expected to remain volatile due to global economic conditions, OPEC+ actions, and geopolitical developments. This volatility influences capital allocation and investment decisions.

Yes, Occidental Petroleum demonstrated its commitment to returning capital to shareholders by announcing an 8% increase in its quarterly dividend to $0.28 per share in August 2026. Additionally, the company received approximately $0.28 billion in cash from the exercise of common stock warrants during the first six months of 2026, and repurchased shares for $2.02 million.